On the influence of land banking system to the development of Chinese real estate industry

Along with the fast propulsion of urbanization, land banking system have already become the important measure to make sure that land resources are used intensively and optimized disposition. Since the establishment of land banking system, the total areas of real estate development increased, the urban residential environment improved and the real estate industry contributed to the GDP more and more. But at the same time, the land price causes the property price rise higher and higher which makes the heavy burden to resident, and suppress the valid purchasing power. On one hand, current land system promotes the real estate industry; on the other hand, negative influences had been made, such as the real estate development cost increasing, the real estate bubble arising and the social recessive cost going up, etc. In order to overcome these defects, urban land banking system should be improved in the aspects of land sale's way and land supply plan formulation.