Wednesday, December 9, 2009

Could Wen Jiaobao solve high house price in China?

High house price drives many Chinese crazy!But where did this problem start? I don't know.But as I have felt,I think it might start at Chinese Premier Wen Jiaobao's first term.I don't know if this is true,I have to say.You know,I just think Chinese government almost did nothing in preventing the crazy rise of housing prices.


Local governments have been using real estate markets to generate revenue and thereby claim “political achievements,” they claim. Real estate developers, in turn, take advantage of loose policies to hoard properties and raise prices. Property speculators have also been driving up the value of the market. 


The reason public figures have not been talking about the core problem of the real estate market is two-fold. First of all, they are benefiting from the high housing prices and do not want to acknowledge there is a problem; secondly, they want to shirk responsibility for their poor management of the housing market.


Although the central government have done lots of things to better people's  life quality,it ignore the real estate market! It's the biggest problem because Housing is so important for Chinese.But the government let the bubble grow and now it's too heavy for common Chinese to shoulder.


I'm wondering if the Premier is able to solve the problem in the rest of his second term.I wish he could.Because it's  a problem that is key to all Chinese.If people don't get a good response,I think it'll make Wen's image not so well in the future.

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