The real estate market has daily become the spotlight of China, impacting on the national GDP, influencing the ideology of the grass-roots, and severely affecting the credibility of the governments.  It is a daunting task to tackle with for the profoundest politicians, economist and the businessmen. My discussion on this topic will undoubtedly be peripheral and superficial, anyway I won’t let slip this opportunity to speak up.

   The demon was let loose only a decade ago when the government initiated the policy of commercialization of the houses. Most of the people then took pride in owning a self-purchased apartment which were affordable if only they were lucky to be assigned to. Few would volunteer to buy real commercial houses even if they could afford to.  Around the year 2002, if my memory doesn’t fail me, the real estate began to show its momentum in rising; some wise men caught the wind and jumped the wagon and reaped an enormous benefits. The domino effect is so pronounced that within a few years investing in the real estate has completely dominated the market, drawing all sorts of ready money into the vast net, which in turn drove the prices higher and higher. The panic struck the whole nation in 2007 which brought the attention of the top government. Several regulations were issued with an intention of controlling the price, but the effect is the reverse: the prices not only didn’t diminish but soared even higher like a kite broken free from its line. Two opposing camps were formed and the gauntlets were thrown down, ready for the duel. Those benefited from the profiteering refused to budge while the buyers to be demanded an immediate reduction. The government finally stepped in, interceding for the majority by openly  promising to limit the price within a reasonable range. The wild tramcar now has lost complete control and the continual increase of housing prices make a mockery of the government’s pledge. Now the nation is holding their breath, waiting for the storm to abate, but the question is when?