CCCH 9014 Reflective Essay
Housing reform policy in China is yet successful
Housing plays an important role in many Chinese families. It is often the main stock of wealth in many individuals. In order to relieve housing problem such as housing shortage, the Chinese government has implemented a serious of housing reform policies in recent years. However, despite these housing polices are implemented, there are still many problems and challenges existing in housing issue in China today. In essence, there are problems raised from the housing reform policy and it is ineffective in tackling the housing problems in China today.
In accordance with the economic reform, the Chinese government has promoted marketization of housing. The aim of marketization is to solve the housing shortage problem while developing a self –financing housing industry from the previous heavily subsidized one (Fong, 1989). The marketization has been dominant in the housing market in China over recent years, but it caused various consequences. The fundamental consequence is the skyrocketing property price. According to global property guide (2013), the price index for second-hand housing in Shanghai has increased by 121% form 2003 to 2008. It is not difficult to understand that when it comes to profit- making business, the principle of profit maximization adopts. Thus, property prices will be pushed as much as it can. Besides, housing is no longer a shelter only. It becomes a form of capital investment. Thus, it is no difficult to see there is speculation of housing in China, and it is more rapid today. It pushes up the demand of housing, eventually binding up the prices. It is not surprising that the marketization of property market will hinder the social development in China. The skyrocketing market prices makes housing unaffordable to many Chinese. They find difficult get a shelter in current property market and their living condition is often over-crowded as they can afford small apartments only. Thus, the quality of
Housing plays an important role in many Chinese families. It is often the main stock of wealth in many individuals. In order to relieve housing problem such as housing shortage, the Chinese government has implemented a serious of housing reform policies in recent years. However, despite these housing polices are implemented, there are still many problems and challenges existing in housing issue in China today. In essence, there are problems raised from the housing reform policy and it is ineffective in tackling the housing problems in China today.
In accordance with the economic reform, the Chinese government has promoted marketization of housing. The aim of marketization is to solve the housing shortage problem while developing a self –financing housing industry from the previous heavily subsidized one (Fong, 1989). The marketization has been dominant in the housing market in China over recent years, but it caused various consequences. The fundamental consequence is the skyrocketing property price. According to global property guide (2013), the price index for second-hand housing in Shanghai has increased by 121% form 2003 to 2008. It is not difficult to understand that when it comes to profit- making business, the principle of profit maximization adopts. Thus, property prices will be pushed as much as it can. Besides, housing is no longer a shelter only. It becomes a form of capital investment. Thus, it is no difficult to see there is speculation of housing in China, and it is more rapid today. It pushes up the demand of housing, eventually binding up the prices. It is not surprising that the marketization of property market will hinder the social development in China. The skyrocketing market prices makes housing unaffordable to many Chinese. They find difficult get a shelter in current property market and their living condition is often over-crowded as they can afford small apartments only. Thus, the quality of