The fist stage1978 to 1991Theoretical Breakthrough and the experimental phase
In 1978, Theorists put forward the perspective of commercialization of housing, land and property rights perspective
From 1987 to 1991 Chinese real estate market stared
In 1991 The State Council has approved the overall housing reform programme in 24 provinces and cities.
The second stage1991 to 1998The irrational speculation and and adjustment phase During this period A lot of money entered into real estate, which resulted severe real estate bubble.Later a series of policies were introduced.The government began the first round of Tightening macro control.And the real estate bubble burst, Resulting in a large number of unfinished buildings and bank bad debts.
Here we have an example, that’s the real estate of Hainan province in 1990s,
At the beginning of 1992 Deng’s southern tour speech published,and then the Party Central Committee proposed to speed up the pace of reform of the housing system, hundreds of billions of funds throughout the country flocked to Haikou, Beihai and other the southern coastal city.At the same time, the housing price rose quickly, This is the first time the real estate was hot since the China’s reform and opening up, and it buried the foreshadowing For the real estate bubble.In 1992 the real estate investment for Hainan reached 8.7 billion yuan, which was an half of the investment in the fixed aets.The land price soared to 6 million per mu than the 0.15 million per mu in 1991.And in this year the Economic growth rate reached a staggering 83% in Haikou and 73.6％ in Sanya
In 1988 the average housing price was 1350 yuan/Square meter,and 1400 in 1991, but increased to 5000 yuan per yuan/Square meter.the average housing price reached its peak at the first half of 1993, the price was 7500 yuan/Square meter.Amazing!!!!
Later on The government rectified the real estate, The State Council iued policies and every oneIs powerful.The hot real estate was disappeared and reminded 10% of the national commercial housing backlog and 6000 unfinished buildings.ICBC ABC CBC and BOC had 30 billion bad debts.From 1993 developers escaped or closed down.And banks become the The largest developer.Bad Loan Ratio of some banks even reach to 60%.
Stage 31998 to 2003Relatively stable coordinated development phase
Along with the reform of housing system and the constant improvement income level of resident ,Housing has become a new hot spot of consumption.1998 is an important period of the development of real estate Chinese.This year, the State Council iued the \"Circular on further deepening reform of the housing system to speed up housing construction\".The main one is the abolition of the welfare housing distribution system, to solve the housing problem through the market.The real estate developed rapidly during this period and The real estate industry has become one of the pillar industries in the economy.
And in this phase Wenzhou real miion came to the stage.In August 18, 2001, the first Wenzhou real miion total of 157 people went forward to Shanghai,and bought 100 houses within 3 days.Totally invested 50 million into property market in Shanghai.In the following years over then 200 billion yuan invested in the real estate.Beijing and shanghai has 100 billion.Where
is the Wenzhou real miion, where is the high housing price.
Stage 4 2004 to 2008 phase of price continue to raise and The introduction of a number of control measures
In this period, The domestic real estate prices continued to rise, The government had also iuedpolicies to regulate and control the real estate.The policies was dense during 2005 to 2006.
In 2007 under the hot money, speculation, the appreciation of RMB and other factors.The housing price increased explosively.The government start Deflated credit to cool downthe property market.
With the outbreak of the financial crisis in 2008 , the domestic real estate had a temporary drop.But soon in 2009 the housing price Rose sharply.
Let’s see a video.The TV play Woju was popular was hot in 2009 because it Caused resonance and also represented the high housing price after financial crisis.Many scholars believed that the rapid rise of the housing prices after the financial crisis is due to the government\'s $4000 billion investment.After the financial crisis, a lot of factories closed down, and the government’s 4000 billion plan,no one believe that the investment in manufacture would ear maney, so the Money flew into the real estate market, and which caused the high housing price.
