Is the Bubble Too Big? Reconsideration of the Situation of China's Real Estate Market

摘要

The frenzied real estate market since 1998 causes worry and alertness in the academic circles and government. They think there appears to be a bubble. Policies concerning the macro-regulation of the real estate industry were published by the Central government. However, the advanced development of the real estate industry is required during the take-off stage and China's real estate market is not in surplus. We should distinguish frictional vacancy and market vacancy. According to the ratio of trade price and income, the level of price is rational. So, the judgment that China's real estate market is in pseudo boom is wrong. The propaganda that every family should have its own house is misguiding and does not accord with the general routine in the world.