Ching Yee: rising commodity prices, where government responsibility
Good government is shirking its responsibility not the government. In big government, the context of small markets, domestic commodity prices continue to rise residential responsibility comes down to whether the market is still down to the government, which originally was a difficult question to answer.
Unfortunately, a long time, the government’s actions at the policy level, the market has reflected an enemy, repeatedly stressed the rapid rise in prices of commercial housing developers and home buyers because of the speculation, so the price the responsibility of continuing high overall push to the market, but only remember a review should be the responsibility of their own.
Is the Government really can shirk responsibility for it? The answer of course is no.
Looking around the world, both in mature market economies, or economies in transition, residential demand can not and should not be met entirely through market means. Which way the market corresponding to the commercial housing, corresponding to non-market approach is to protect the house. Population growth, especially driven by urbanization, population structure, economic situation, whether in prosperity or depression, domestic demand is always rigid. This determines the way the market that can not be liable to commercial housing to meet housing needs must be by the Government through non-market approach to the protection of housing to meet, also decided among the commercial houses and security room should maintain a proper ratio, otherwise the price of commodity houses inevitable volatility, and thus increase the whole society on the housing dissatisfaction.
As a planned economy to a market economy in transition economies, the problem of key domestic residential, Zheng Fu Guo Cheng Zhong could not properly cope with transformation between commercial houses and Bao Zhang Housing proportional relationship Biao Xian Wei repeated tightening security over the supply room, Poshi should follow the original Bu ways to meet the market demand for housing residents were driven to commercial housing market, so demand for commercial housing prices in the over-stimulated growth of abnormal rise. There is no doubt, due to commercial housing and the protection of the proportional relationship between house severely damaged, over rising commodity prices is not the primary responsibility for the market, should rather more by the government.
Before 1985, the domestic housing market is almost non-existent goods, all residents of the housing problems are to be addressed through the security room, the statistics show a ratio of 100 percent protection room. To 1986, completed the domestic residential area of 1.205 billion square meters of total sales of commercial property area of only 18.35 million square meters of commercial housing by seven as calculated, then the total commercial residential or residential commercial residential rate ratio of 1.07%.
10 years later, in 1996 completed the domestic residential square meters total area of 1.219 billion, while sales of commercial property rose to 68.98 million square meters area, as calculated by seven become a commodity residential, residential commercial rates to 3.96%. In another 10 years, and in 2006 completed the domestic residential area of 1.314 billion square meters of total, domestic sales of goods rose to 606 million square meters area, 10-year cumulative increase of up to 779 percent, while the protection of housing supply from 10 years ago to 1.15 billion square meters of atrophy to 890 million square meters below the fold so large domestic commercial rate raised to 32.28%.
By 2007, China completed a total area of housing increased to 1.463 billion square meters, though, but the area ahead of commercial residential sales rose to 774 million square meters, of which approximately 5.5 billion square meters of residential, commercial residential rate which makes the re-raised to 37.6%. View of the area of commercial housing were sold in 2009 and further increased to 937 million square meters, of which not less than 700 million square meters of residential, believe that commercialization of the domestic rate of residential break 43%. However, even in developed economies, domestic commercial rates reach this level, many only about three percent.
Overall, from 1986 to 2009, domestic sales of domestic product increased 509 times the total area, while from 1986 to 2008, completed the domestic security residential area of 22.56% cumulative decline. Taking into account the same period the urban population by the rapid growth of 264 million to 6.1 million, due to security room formed by shrinking the supply of housing shortage problem is very prominent. Thus, the commercial housing prices have risen steeply down to the responsibility of commercial housing and the protection ratio between housing imbalance and the government does not properly protect the housing supply crunch, is totally established.
Usually a person’s good or bad according to his ability to take responsibility for others to judge. By inference, on the middle and low income housing needs of the responsibility of government to protect the rich, long-term protection of housing supply contraction laissez-faire, especially given the protection of housing supply, urban population growth is relatively rapid decline, while allowing domestic commercial rate of abnormal increase can not said to be a great mistake. I have considered this point was very polite.
No exaggeration to say that if the government can not guarantee the domestic commercial housing and the ratio between house restored to an appropriate level of commercial housing prices rose too fast the whole problem will not solve the long-term. According to the current level of national income estimates, the total newly added commercial residential proportion of new residential or residential commercial rate should be controlled at 25%, which is over 43% of the current commercial rate compared to the domestic housing is clearly there huge gap.