Why are housing prices so high in China?

Now the housing prices in China are getting higher and higher, especially in first-and second-tier cities. The housing prices in these places are beyond the affordability of ordinary people. Even if you are not a first-and second-tier city, you just want to buy a suite in a small county, and you are likely to spend all your money. So why are housing prices so high in China?

1. Why is the house price in China so high?

1. Serious currency overshoot

By the end of 20 12, the balance of China's broad money M2 was nearly1000 trillion yuan, 65 times higher than 1990. In the next 20 15 years, the circulation of M2 reached 17 trillion, which is nearly 140 trillion. In addition, the circulation of M2 20 16 is 20 trillion, as can be seen from these data.

2. Less land and more people

Everyone knows that all the land in our country belongs to the state, but at present, the land for urban housing is in the hands of local governments. Why does everyone want to buy a house? In fact, buying a house is buying land. China's land resources are limited, and the state is in charge. Every year, housing land will be issued according to the needs of various regions, but it will not exceed the demand. So what is happening now is generally that as long as you open a house, you will be robbed. According to statistics, China's urban built-up area is 38,400 square kilometers, accounting for only 0.4% of the country's land area, but the rural residential land area is about168,000 square kilometers, accounting for 1.75% of the country's land area, and the real estate land only accounts for 4.5% of the national construction land. It can be seen that the amount of land between urban and rural areas is very different, and there is little land for commercial housing, that is to say,

3. China urbanization model based on land finance.

After the implementation of the tax-sharing system, the local fiscal revenue is getting less and less year by year, and the financial power and administrative power are seriously unbalanced. Therefore, land has become the main driving force for urban management and local economic development. If the city wants to develop, it is necessary to build roads, subways, and so on. Each item needs money to achieve environmental protection and indicators. Where did this money come from? The quickest way is to sell land. Everyone knows that buying a house in rural areas and fourth-tier cities will not be very expensive, but buying a house in first-and second-tier cities will be very expensive, but there is no big difference in all materials. Then why are housing prices so high in first-and second-tier cities? It is precisely because buying a house in these places can enjoy the superior living environment and convenient transportation that these invisible reasons make the house value-added.

The gap between the rich and the poor has widened.

The reason for this situation is the over-development of money, and most of the over-developed money has actually been taken away by a small number of people. The income of ordinary wage earners has not been greatly improved, but this is not all. Due to the special market structure and economic status quo, the proportion of normal entrepreneurship can not reach the level of market economy countries. As we all know, there are two situations in China where it is easiest to get rich: energy and resources. Energy is to dig coal and mine. Resources depend on the background and channels. These two have a common feature, that is, they make money quickly, need to invest less liquidity, accumulate funds quickly, and have low requirements for personal education and quality culture. And what will such people do when they have money? Generally, it is to buy world luxury goods, luxury cars, luxury houses and so on. And buying a house is the biggest expense, and the money eventually flows to real estate.

Bian Xiao Abstract: The above is the article that Bian Xiao shared for you today. Why are housing prices so high in China? Because of various factors, housing prices in China have risen rapidly, but the state has also formulated corresponding policies for those who are unable to do so. For more information, please stay tuned to Qijia.com.