Author(s)

Chen Ningyan

Corresponding Author

Chen Ningyan

Abstract

Since Mainland China's reform and opening up, house prices have been rising and kept at a very high level in recent years. In many cities of Mainland China, the rent to sale ratio and the ratio of wages to housing prices are too low. The reasons for the rapid growth of Mainland China's housing prices are the attention of the people to real estate, the local government relying on real estate to drive the local economic growth, and the promotion of developers and speculators. Mainland China's high housing prices have many effects. First, high housing prices will easily lead to Mainland China's real estate bubble and subprime mortgage crisis. Then, high house prices will make more money flow to the real estate market and hit the real economy. Finally, high housing prices will make the young people who enter the first-tier cities unable to afford housing, while the rich people have more and more assets, aggravating the social polarization between the rich and the poor. The Chinese government controls house prices through a series of policies. Mainland China's real estate from the development era into the stock era, the real estate financial market is booming. The combination of Private Equity Real Estate and REITs may become the mainstream mode of Mainland China's real estate financial market in the future.

Keywords

Mainland china's high real estate price, The growth rate of mainland china's real estate price, The age of stock, The innovation of mainland china's real estate finance, Reits in mainland china