real estate sould be regulated. 2013.11.3real estate should be regulated. 2013.11.3real estate should be regulated. 2013.11.3real estate should be regulated. 2013.11.3.doc

High House Price Should Be Regulated More Strictly and Powerfully It is generally known that house prices in urban China are soaring continually and place intolerable burden to most people. In big cities like Beijing, Shanghai and Guangzhou, the house price to income ratio are above 10, while internationally, a reasonable ratio should be under 6(Xu,245). The government has taken a series of measures to eliminate the bubble in the property market since 2003, however, the surging house prices intensified public distrust and challenge the housing regulation(Brown). The discussion about whether the house price should be regulated is sustained and heated for years.Considering the general situation of China property market, high house price should be regulated more strictly and powerfully. First of all, high house price is a world-wide important issue, which cannot be solved by market itself and severely needs regulation by government. House prices more than doubled and even nearly tripled in different country around the world, which makes bubble and leads to increasing riskiness of economic crisis. Once the real estate bubble brust, the crash could cause recession and be deathful to the country’s economy, exactly as Japan in 1990 (Fackler) and America in 2008. Therefore, the cooling measure become significant for the long-term development of the whole country. Also, in the condition of market economy, property is regarded as both necessity and investment goods, which makes the free competition of house impossible(Huang 240). Consequently, the government is obligated to ensure the fairness and justice in the real estate market. Furthermore, only the regulation by government can solve the fundamental problem in in the housing market. Compared to western country, the distinguished feature of China real estate market is that the land cannot be possessed by organization or person. The government’s monopoly of the right of handling of land and changes of land use nearly makes