The price of housing is high in China
We all know that the price of housing is high in China today. In many Chinese cities especially in the big cities, the speed of rising in price of housing has deviated out-speeded the speed at which the income increases seriously. It is awkward that a common person can not afford a common house in our country. What reasons have led to the situation mentioned above on earth? In my opinion, there are two main and essential reasons accounting for it. First of all, the price of lands which are available for the real estate industry has increased tremendously. We know the real estate includes two parts: the land and the housing. The price of the real estate includes the land’s and the housing’s price. The expensive land increases the cost of the house; certainly, the cost will be passed on to the consumers at last. Secondly, there is much more foam composition accompanying with the economy of the real estate. At present, more and more people need to purchase a new house, which shows there is a good market in the future for the real estate industry. Economists call it is “selling party market’’. So many businessmen of the real estate as a manipulator and dominator in the market as they enjoy advantages over the purchasers. Thereby, rises in price of the real estate often happened. In a word, the reasons influencing the price of housing are complex. But there is a simple fact; Chinese government must attach importance to higher and higher price of housing.
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