英文文献综述-房地产价格形成原因(literature review)

November 9, 2010

Literature Review

492

Why the Housing Price So High

Nowadays, people are proud of having a house of his own, because the housing price is higher and higher. Why so? Is the governments control the housing price? Are the land agents cheating the consumers? Maybe we cannot differ the justice from this issue. But I think the three elements in proving this matter are government controlling, land agents measures and the ignorance of people.

Most of owners of land agents are poor in the past, but they can borrow their first capital from the banks. With the first capital, they can build a building, and then sell it to people to recover their loan. The profit must be larger than the interests, so they can earn fat profit in doing this. Why they can sell these houses in the time? They tell people that the houses are in short supply, if we don’t buy one, the price will rise to a surprising level, but in fact, they just hold the houses in their hands. Once hearing this, people are nervous that they might have no place to live, so they just follow what the land agents say.We should enhance the examination of the land agents. When the price is increasing, with the help of local government and local banks, the increasing will get higher, so we should enhance the examination of the agents.i

Government is the main part of controlling the housing price, but it just stays behind the land agents as a bystander. Banks are all belong to government, so the banks deficit is equal to the government deficit. Banks loan to the land agents with a not-high-interest but huge quantity money, they must receive it in time so that they

can keep themselves for long time. If they cannot receive this huge number, they will shot down quickly, but they cannot shot down as a state enterprise. Governments don’t want to see this, so they publish news, such as, the land resource is in short supply. People will feel crisis in this, so they will buy houses no matter what price it is.

Every official would interpose the land discovery, no matter he consider the public interest or self interest.ii

Price increase when buying house become a trend in society, and the government recover their banking loan; the land agents make many profits in using the financial leverage. The only victim is people who have bought it, but they don’t realize that they were cheated by both the bank and the land agents.Changing the phenomenon of rising price is the only choice, but the effect depends on the governments in doing the combination policies.iii