Should the government intervene in fixing the house price?

Should the government intervene in fixing the house price?
Jun 24, 2007 22:18
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: offline	House price in China has been rising rapidly in recent years. Confronted with this kind of situation, Nanjing municipality used some administrative measures to fix the house price, for example, they regulate that the increase of house price should not exceed 5% and limit the profit margin. The move of the government has aroused people's attention and leated discussions. The developers, ordinary people and scholars all take part in discussing this issue. Ordinary people applause for this move. They say that the government should have done earlier. At present, the house price has rising too quickly. Those ordinary people can not afford to buy a house. The developpers object that the government should not intervene in fixing the house price. They say that today's economy is market-oriented not planned economy. The price should be determined by the market supply and demand. The government has its reasons. If the market rule fails to adjust the price, then the administrative means is needed. House is very important to people. To adopt some administrative means can help pull the house price back to the normal track and ensure that the real estate can develop healthily. The scolars say that other developed countries also had done so. The bubble of real estate in Japan and Hong Kong proves that the rapid increase of house price is harmful to economy development. The purpose is to ensure that those middle and low income families could have their houses. What is your opinion, my friends? Should the government intervene in fixing the house price or not?

Jun 24, 2007 22:18

KEVIN0518
Points:
Join Date: Mar 13, 2007
Status: offline

House price in China has been rising rapidly in recent years. Confronted with this kind of situation, Nanjing municipality used some administrative measures to fix the house price, for example, they regulate that the increase of house price should not exceed 5% and limit the profit margin.

The move of the government has aroused people's attention and leated discussions. The developers, ordinary people and scholars all take part in discussing this issue.

Ordinary people applause for this move. They say that the government should have done earlier. At present, the house price has rising too quickly. Those ordinary people can not afford to buy a house.

The developpers object that the government should not intervene in fixing the house price. They say that today's economy is market-oriented not planned economy. The price should be determined by the market supply and demand.

The government has its reasons. If the market rule fails to adjust the price, then the administrative means is needed. House is very important to people. To adopt some administrative means can help pull the house price back to the normal track and ensure that the real estate can develop healthily.

The scolars say that other developed countries also had done so. The bubble of real estate in Japan and Hong Kong proves that the rapid increase of house price is harmful to economy development. The purpose is to ensure that those middle and low income families could have their houses.

What is your opinion, my friends? Should the government intervene in fixing the house price or not?

Jun 25, 2007 22:05	#1
YVONNE Points: Join Date: Nov 29, 2004 Status: Offline	When the market law can not take effect, the administrative means is indeed needed. To change current situation in China' s real estate, the government should intervene in adjusting the house price. It is said that about 77% people support the move of the government so that it proves what the government has done is good for people.

Jun 25, 2007 22:51	#2
CHERYL Points: Join Date: May 10, 2007 Status: Offline	In market economy times, the macro-control of the government is necessary, because the self-adjust of the market is blind and deficient and house is one of the basic living conditions of people. If the government doesn't take effective measures to adjust the house price timely, the safety of the whole society will be threatened.

Jun 28, 2007 03:52	#3
MIRANDAZHAO Points: Join Date: Feb 7, 2007 Status: Offline	I admire that Nanjing people can enjoy this good policy. As far as I know, even in developed countries, the house price is also under the government control.

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