The Current Challenges of Government Regulation in the Overheating Real Estate Investment in China



[Name of the Institute]ACKNOWLEDGMENT

I would like to thank everyone who helped my completing my dissertation on the time including my supervisor, my teachers, my family and my friends. It is that without their efforts this research would not be possible.

DECLARATION

The dissertation submitted is the result of an individual effort and investigation, except where it is stated otherwise. The title of this dissertation and the depth have not been accepted by any degree neither it is being concurrently submitted for other degree.

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ABSTRACT

The objective of this dissertation is to investigate the current challenges of government regulation in the overheating real estate investment in China, assess what kinds of reasons continuing push the overheating real estate market in China, examine government's policies in controlling overheating real estate market and how households and consumers currently facing such issues. The research uses the mixed methodology of secondary and primary research using both quantitative and qualitative data sources to analyze overheated condition of China real estate investment and thereby provide the relevant interpretations and findings to the causes of high housing prices in China and what are the most effective strategies that government authorities and policy makers should take to regulate and control the current situation of overheating investment in China and thereby help more and more households to purchase houses in cities of China.

Table of Contents

ACKNOWLEDGMENTi

DECLARATIONii

List of Tablesvii

List of Figuresviii

List of Equationsix

CHAPTER 1: INTRODUCTION1

1.1 Research Background1

1.2 Purpose of Research5

1.3 Research Aims, Objectives & Conceptual Framework8

1.4 Significance of Research12

1.5 Research Limitations13

1.6 Outline of the Research14

CHAPTER 2: LITERATURE REVIEW16

2.1 Background Real Estate System of China16

2.2 China's current situations of Real Estate Industry18

2.3 Significant reasons of high housing pricing in China and Housing Price Theory21

2.4 Currency Value of RMB22

2.5 Gross Domestic Product Value26

2.6 Demand Structure of Housing in China28

2.6.1 Excessive Liquidity of China Housing Industry28

2.6.2 China's traditional attitude towards market demand of housing30

2.6.3 Changes in the Households Average Incomes in China31

2.6.4 Increasing Demand of Urbanization in China33

2.6.5 Low Interest Rate of Commercial Banks in China34

2.6.6 China's High Deposit Rate35

2.6.7 Limited Scope of Investments35

2.6.8 Family Structure in China36

2.6.9 Wealth Gaps37

2.7 Supply Structure of Housing in China38

2.7.1 Disordered Structure of Supply of Housing in China38

2.7.2 Inadequate Local Governmental Policies40

CHAPTER 3: DEVELOPMENT OF RESEARCH QUESTIONS/HYPOTHESIS & RESEARCH METHODOLOGY42

3.1 Research Design42

3.2 Development of Research Questions44

3.3 Development of Research Hypotheses45

3.4 Secondary Research46

3.4.1 Quantitative Data47

3.4.2 ARIMA Time-Series Regression Model47

3.5 Primary Research49

3.5.1 Quantitative Data49

3.5.2 Qualitative Data50

3.6 Validity and Reliability51

3.7 Ethical Consideration51

CHAPTER 4: FINDINGS, ANALYSIS AND PRESENTATION53

4.1 Interpretation and Findings of Time-Series Regression53

4.2 Interpretation and Findings of Questionnaires58

Q1 - Age Group59

Q2 - Geographic Location60

Q3 - Working Experience60

Q4 - Numbers of Owned Houses62

Q5 - Average Housing Prices in China64

Q6 - Average Annual Income of Households65

Q7 - Level of Affordability for Household66

Q8 - Purpose of Owning House in China67

Q9 - Sources of Finance to Afford House68

Q10 - Leading Causes of High Housing Prices69

4.3 Interpretation and Findings of Interviews70

4.3.1 Interview Question 1- Most Significant Causes of Overheating Real Estate Investment in ...