Analysis of the Causes of China’s Real Estate Bubble

Abstract

The real estate bubble has always been the concern of the government and scholars. Especially at the time when the COVID-19 problem is serious and the economy continues to be depressed, our research on the real estate bubble is of great significance. Based on the definition of real estate bubble by different scholars, the analysis of past real estate bubble cases, and the existing literature review, this paper analyzes the current bubble’s situation of China’s real estate, which has become a really serious years ago, and summarizes the possible causes of real estate bubble such as excess liquidity, the overheating economy some sort of bureaucracy problem and so on. Finally, this paper briefly describes the causes of Japan’s financial crisis in the 1990s as well as the government’s solutions, then analyze how China will deal with the real estate bubble at this stage and give out some possible options like methods through inflation legislation or speculation etc.