DETERMINANTS OF HOUSING BUBBLE IN CHINA

Abstract

In recent years, with the rapid economic development, China's real estate industry has also entered another round of business cycles, maintaining rapid growth for many years. But so far, the cumulative increase in real estate prices has been quite huge, and certain bubbles have been produced in some areas. Under such a background, it is undoubtedly of great practical significance to carry out in-depth research on the phenomenon of real estate bubble and to deal with the possible bubble burst in advance. This article is divided into six chapter. The first chapter mainly explains the background of the topic, the question and purpose of the investigation and research, and introduces the limitations of the investigation and research. The second chapter collects a literature review and introduces the relevant variable definition, causes, characteristics and harm of the real estate bubble. The third chapter is mainly about the literature review of theoretical research on the measurement method of real estate bubble. The fourth chapter will introduce the test result use data to determine the house bubble in the current China real estate bubble. Through the comparison of 5 indicators house price, vacancy volume, local income, rent house price, loan interest rate and the comparison with the standards of the real estate bubble, it is concluded that there is a local real estate bubble in China, but there is no overall bubble. The fifth chapter finally puts forward the governance measures against China's current real estate bubble, aiming at the local bubble in China's real estate market. The chapter sixth is my personal reflections.