Executive summary
This report will be discussed on the issue of Chinese housing price control policy and its effects. The research has showed in the past decades, Chinese housing pricing was increasing at an unhealthy amazing rate in almost every city. The Chinese government has kept publishing a series of policies in order to control the increasing price. The report will apply this issue to Economic in One lesson and analysis the inflation and government pricing fixing effects.
Introduction
Since the reform and opening-up policy published in China in 1978, Chinese economy boomed in the past decades. China is facing great opportunities with its Chinese features; however, it also brings some negative
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Each family member will have 60 square meters exempted from tax. Hazlitt has discussed the effect on tax, it cuts down the production. In China real estate case, it not directly reduces the production as the tax burden doesn’t go to supplier, however it directly leads to the decrease of housing demand and cooling down people’s notion of housing is a store of wealth.
Recommendation and conclusion
In economics view housing price control is only a short-term solution for maintain the stable price. In the long run government shouldn’t interfere too much in a mature property market as the market itself has the ability to adjust the price and balance the demand and supply. Moreover, whether the local property industry actually can achieve the goals that government set and is the new property tax will continue implement in other cities or it will be abolished is still uncertain. As we can see, there is a gap between the government policy and actual practice due to the real Chinese society situation and people’s conception. Housing price has become one of the most urgent issue in China for a period of years and actually in later 2008 and 2009 some big cities’ housing price had a obvious decrease, such as Guangzhou city. The main reason is not because of governmental macro-control but the global financial crisis.
This paper will argue how Canada's housing market is at an all time high, we are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing through out the nation and is depriving the average citizen to be able to purchase a house in there life time. There is a major issue with the state of our market and how it effects out current citizens. Issues have been arising where the average wage in Vancouver is estimated at seventy seven thousand per family house hold, yet the average costing home as reached between five hundred thousand in the
The housing crisis of 2008 can trace its origins back to the stock market trends of the mid- to late 90 's. During a period of extended growth in the stock market, increased individual wealth among investors led to generalized increases in spending, including in the housing market. With more disposable income in the pockets of consumers, the demand for housing increased in the late 90 's. Due to the fact that homes are large projects and their construction takes a large amount of time, the supply of homes in the market is inelastic on the short term. Because of the fixed supply of homes, as per the law of supply, which
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Responsible for the increase in the housing market are foreign buyer’s - purchasing in cash, as well as the provincial government. Thus, the government may implicate laws and regulation in order to stop this increase. Although there are multiple efforts being made by the government, their negative repercussions may be more severe. The implementation of “price caps” by the government will aid in lowering the house market. These price caps will asses the property on the basis of its size and features and will have a “max price” it can be listed for. Likewise, the government may further their efforts by Imposing a speculation tax on people who flip houses within a short period, perhaps within two or four years of purchase. The tax could apply to all homes or be limited to non-principal residences. These possible efforts will lead to the demise of the GTA housing market
The housing crisis in America is a major problem plaguing the United States' economy. Before a solution is formulated, one must consider the history of the market and the causes of the problem. And after a solution is formulated, one must present an idea for prevention of the problem for the future.
Housing is a big concern of every family because it is where the family established. Most of families are willing to spend most of their income to own a house. However, the housing markets are not always fair and reasonable for normal people. Rich people are buying more than 1 house, but a lot of hardworking wage-earning classes cannot even afford 1 small apartment. Since the real estates are the rigid demand and a good way to keep value, too much money flow into the real estate markets. Sometimes it makes the housing price too high for normal people to afford.
Since the implementation of the "reform and opening-up" policy in 1978, China's economy has been undergoing a rapid and healthy development. Over the past 27 years, China's annual GDP growth has averaged 9.4 per cent, more than doubled that of the world as well as more than two folds that of the developed nations over the same period. In 2004, China's GDP reached USD1650billion, an increase of 9.5 per cent over 2003.(The Embassy of the People's Republic of China in Australia, June 2005)
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The first sign of the “ Financial Crisis ” occurred in 2006. Many house prices began to drop. Realtors at first where thrill, they considered that the overexcited house market will finally return to it’s stable place. What real estate agents didn’t realize that many property owners have taken loans that were about 100 percent or more from their property worth. Many people blamed the Community Reinvestment Act of 1977 . This act motivates banks to
This research topic is significant to the current property market in Singapore and its sudden increased demand for houses despite the economic downturn, exploring deeper as to whether the government policies were the real influential causes to this boom in property demand. It has relevance to the economic concepts of demand and supply, elasticity, inflation and monopolistic competition. This topic is worthy of investigation because it is a hot media topic in Singapore, and is widely debated in the country because it’s the most expensive household asset.[2]
Government policies and subsides have a sizable impact on property price, and demand. The government can temporarily boost demand with tax credits, deduction and subsidies. From the customers point of view
Prathamesh Muzumdar, Illinois State University, Normal, USA Abstract The research explores the subject of zoning effect on price value of a house in a certain designated zone. Zoning is defined as a land under planned use. This results in price value of the land. As the area of the land decreases an increase in price occurs. This research does not specify the magnitude of a certain unit by which a housing price will increase or decrease but it estimates the housing option value. This research helps the policy makers to improve long term policy decisions. This research will showcase zoning effects on
The issue of introducing regulations and limits to the prices at which rents are set has been long debated by economists and policymakers. Morally considered, price caps and rent regulation seem an effective strategy in allowing lower to middle income families and individuals rent out a home, however, economists generally believe that such regulations negatively impact the housing market and the supply of housing. In this essay, the issue of price regulations within the housing market will be discussed from a microeconomic standpoint, with brief acknowledgement to the social effects
A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.
China is one of the major economical players in today’s international market. China’s economy is the “seconds largest in the world after the United States” (Joseph, 63). This is a striking achievement due to fact that China is a “developing country”. China has achieved a great amount of success through the collaboration of political and economical regimes. The economical growth in China led to “one of the biggest improvements in human welfare anywhere at anytime” (Kristof, 15). Currently, China is experiencing a real-estate bubble. This eventually will hit a climax, disrupting the real-estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing