Wang Yijiang: Panic purchase in housing market is caused by inflation

wangyijiang

Associate Dean of Cheung Kong Graduate School of Business, Wang Yijiang

According to the news release from the Boaoforum.org, Associate Dean of Cheung Kong Graduate School of Business, Wang Yijiang attended the Boao Forum for Asia 2013 and expressed on “economies in transition and market regulation” sub-forum on the afternoon of April 8 that “panic purchase in housing market is caused by inflation”.

He suggested that in the decision making process of real estate policy that involves hundreds of millions of people, people do not have a normal, reliable and orderly channel to express their views. There is a need to change the government decision-making mechanism. In the long run, the only way to curb housing prices is to increase the supply; on the other hand, panic purchase in housing market is caused by inflation.

Reference Link: http://www.boaoforum.org/cgzxbd/7679.jhtml

Editorial Comment:

Wang Yijiang stressed the supply increase to solve the problem of high housing price, but the key is that the major cities of China at present are suffering from the over crowded population and it would be difficult to increase the supply in the cities so that they can accommodate the bigger population that the cities cannot take at all. The solution to increase the supply should be based on appropriate city development plan and balance development between rural areas and urban areas.

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