It is newly reported that the housing price in Beijing has grown up to 65000 RMB/m²(downtown),and the housing price in suburb has increased to approximately 20000 RMB/m².Research shows that this abnormal sustainable growth will continue and the main course of this is the growing price of land.

It seems that the growing housing price shows the prosperous of real estate industry,however,I think this is a reflection of property bubbles.Most of the sold apartments are regarded as real estate rather than a place to live in.That results in market failure——the price of house are not determined by the “real consumers”but the speculators.The consequence of this is people who really need a house can not offer one,but the houses in abnormal high price remain unsold(or the speculators buy them but they do not actually live there),which might intensify social contradictions.

In my opinon,this situation is quite similar to the 2008 financial crisis,resulted from the sub-prime crises in America.To prevent that,government should moderately control the housing price and introduce policies to restrict the number of houses a person can buy.

Additionally ,the increasing housing price in big cities like Beijing Shanghai etc. may let the consumers turn their sigh to the house in tourist cities because of the lower price and better environmental conditions.