Rich housing market, housing the poor find Mayor

Rich housing market, housing the poor find Mayor

November 2, 2010/Dong Xiucheng

Recently, the real estate market was amazing from the media data, markets not expected of "cold" status, prices in major cities Beijing, Shanghai, Guangzhou, although slightly decline or stagnation, but trading volume is still in a strong State.

Whether April's "ten" regulation, or September of "new five" regulation and control policy, it seems that effect is not very obvious, expected targets seem difficult to achieve, and look forward to more of the public are very far apart.

From the Government level, the policy "combination fist" frequent attack, including Number Sets a restriction, interest rates and advance supervision and control of funds, abolition of first set of interest rates to 70 percent off and vigorously rectifying intermediary markets and render the estate tax policy, can be described as heavy extraordinary, regulation cannot be said that the Government is determined to not.

However, the market seems to be some "unusual", demand remains strong, prosperity still, falling and prices do not fall, individual property and even contrarian rise.

So, we have to rethink, what is the force in supporting the prosperity? Why the policy target difficult to achieve?

Careful analysis, is not difficult to find, the crux of the problem lies in policy differences between itself and the market demand of power. From the perspective of the Government policy level, a series of regulatory policies such as suppressing demand and increasing supply

, Restricting speculation and mortgage financial control, their fundamental nature belonging to the national executive power means. Executive power is often with temporary effects, lack of confidence in real estate business and public administration, for long-term real estate market trend remains optimistic, and firmly believes that real estate price rising in the future.

The rapid economic development, industrialization and urbanization trend, coupled with the huge market, abnormal excess liquidity, inflation pressure, these people expected future trends in real estate market will keep health, whether owner-occupied or investors will therefore funds investing in real estate market.

Market power and administrative power of the force has been a contest, but the General said, the Chief force is short-term and temporary, and market power have a long-term, stability, from the perspective of market economy, market forces will be the decisive force decided to market prices.

Administrative policies are often unable to tackle, so relying on administrative control of the Government policy, not fundamentally shake the market pattern, or simply touch not to market this source, it may be a short-term psychological impact than the actual effects, may have an impact on the market in the short term, but long-term effects are limited, cannot fundamentally solve the structural problems of the real estate market.

Judging from the policy effects, countries should return to the origin of the market economy, must be from the root system level operation, returned to the economic regulation and control means, and in particular to establish a long-term, adapt to China's basic national conditions, does not violate basic laws of market economy, led by the tax policy of the real estate market regulation system.

At the same time, to establish a universal social security system, the market is the market, the Government is Government, function to strictly distinguish between the two, "rich man's housing market, housing the poor find Mayor", the Government is responsible for resolving the livelihood problems, rather than allowing the market to solve the livelihood problems.