Institutional Defects and Regulation Policies in China's Real Estate Market

The reform of housing system started in the end of 1970's has accelerated the formation and development of the house market in China. As a result, the real estate industry has grown up as a backbone industry of the national economy. However, there are still some institutional defects in the real estate market, such as excessive-marketization of housing system reform, non-marketization of land transaction system reform and semi-marketization of house credit system reform. Multidimensional disequilibrium with institutional defects exist in the real estate market, which can be expressed as people's optimistic expectation, market's lesser restriction on developers and so on. The root cause of the weak regulation on real estate market is the institutional defects. Therefore, the multi-level housing markets should be set up, the land transaction marketization should be accelerated, and the real estate credit system should be developed.