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Introduction

To begin this research proposal , it seems very important to note that China is becoming a super state in the last decade. That is why that every detail should be zoomed and investigated properly. My task is to both comment on and ponder over the situation around house prices and to give the forecasts of the future housing price in China. First, I will properly examine the root of the situation stated earlier. Comment by Author: What do you mean by “super state” and how does this impact your chosen topic?

History

If people just look back to the situation in the last few years, they would actually observe the following: the House Price Index began was lower than GDP per capita in 2012. However, the actual situation of that both indicators are increasing in these years. Many Chinese dwellers are complaining and claiming that the average citizen of Beijing has to neither eat food nor drink for approximately eighty years just to buy a floor space of around one hundred square meters. Actually, in the three main cities of China, this is not exaggerated. This situation has become worse, because the population is expanding and the space of he these city is limited.

The property market in China is likely going to be strong and medium oriented. According to Global Property Guide (2015), “T[t]hat's because the government seems almost certain to continue its expansion policies. The housing market is deeply intertwined with China's rebalancing from export-led growth to domestic-led growth.” Comment by Author: Are you referring to demand?

I decided to take this topic, because I heard a lot of information about this phenomenon and this problem is becoming serious in recent years, which could even take away people’s happiness. Beijing is the city I’m most familiar with in the world, so I really want to explore how the housing price is going to be in the future. The housing price is closely bound up with each one in China and all people in the main cities are struggling.

Although the great problem on possessing a home is being revealed, some Chinese (especially in Beijing) have found a way out. They begin to live in the so-called heavenly bushes. They barely have something common with apartments that American people have got accustomed to, but Chinese people are glad to have at least such ones. Comment by Author: You need to provide more detail about what these are. Consider that the average American reader probably hasn’t ever hear this phrase and would have no idea what it means.

The Problem Itself

One famous expert in China has concluded that the demand for housing is increasing due to four possible reasons: the development of urban city, family expansions, growth of the average income, and unbalanced demand of housing in cities of China. These four factors led to a continuing growth in demand, which pushes the housing price to be higher. Comment by Author: Who? Comment by Author: This needs a supporting citation since it clearly comes from an outside source.

Also, the housing price competition is so intense so that housing price would have a continuing rapid rise by comparing with each other. It could also cause china’s housing price in the major cities accelerate.

Of course, a question concerning a floor space is always related to the country’s policy. This actually means that the topic exactly affects the life either in future or before the present moment. Earlier, I mentioned that China is becoming a superpower. If a country is entering a very new level, this will undoubtedly affect its economic situation and the housing prices would definitely step into a new levwllevel.

There is also the information telling us that the greatest amount of houses will be built in China. This seems to be real due to the existing urbanization. Thus, the necessity of obtaining the houses will absolutely increase in the next some years. Here, the actual main problem may appear: there is an enormous lack of housing nowadays; It is truly hard to find moderate prices for the existing habitations. By the way, China appears to be an implicit leader considering the amount of housing estates by cities that are inconsistent with the generally accepted standards.

The mortgage market promises to increase sufficiently. In such a way, people will be able to buy a floor space freer than some time ago. It should be highlighted that China will definitely specialize deeply in bad condition habitations replacement rather than in constructing new buildings.

How to Solve a Problem

According to Cox (2010), “O[o]nly thirteen per cent of the 31 million new houses were affordable to lower and middle income people” during the previous years. Moreover, there is a great difference between new luxury and both middle and lower income units. Thus, how to fix the housing problems in those major cities in China and how to provide people a better living standard in those cities are really tough.

To improve the situation existing, there are some quick decisions that have to be made. Firstly, it will be better to build available floor space at the relevant place. Actually, the suburbs are to be favorable and well equipped with the solid infrastructure. This will surely increase the economic potential of poor people.

Secondly, it seems right to increase the effectiveness of building. It will be reached due to the help of standardization and utilizing more sufficient technologies.

Thirdly, the banking system within China should develop. Consequently, the system of risk management at state level will renovate with guaranteeing macroeconomic stability and low inflation rate.

Last but not least is to probably create the group of operators of the state level, which will perform repair works. It is going to be a very decisive and important step, because usually expenditures for maintenance and tendance is about twenty-thirty per cent of all habituation expenditures per year. If the Chinese government lower them, this will lead to greater floor space’s availability. At the same time, the quality of maintenance should not turn to the worse.

To sum up, it appears fairly necessary to highlight the housing problem that this super state has met. Not as any other countries, China faces more serious problems. The question of housing price is very close to almost every Chinese. Taking the facts before into account, I can roughly make a prediction that in the future ten years China will resort to constructing a big quantity of swelling houses. If the government will be able to keep pace with prospering urbanization, the situation around available habituations is going to stabilize.

References

Global Property Guide. (2015). China’s Property Market Soars to New Highs. Financial Overview. Retrieved from http://www.globalpropertyguide.com/Asia/China/Price-History Comment by Author: Don’t include full urls, only the top level url is necessary.

Cox, W. (2010). China’s Sliver of a Housing Bubble. New Geography. Retrieved from

http://www.newgeography.com/content/001733-chinas-sliver-a-housing-bubbl Comment by Author: Chang, While you do provide some background on why you are interested in this topic, you don’t really address why your reader (remember, for this paper your “reader” is the average GRC student) should care about this. Certainly, some GRC students are Chinese, but is the “average” GRC student…not really. Similarly, you provide some ideas about what you may propose in your final project, but you don’t actually state the specific research question you are posing. A reader can infer your objectives from your list of “changes” that you proscribe at the end. But these statements are more fitting in a final project. Here, they should be stated more generally, for example “My third objective is to examine the Chinese banking system to discover what, if any, changes in the mortgage industry are needed to improve the Chinese housing system”. The point of the proposal is not to argue your position but to introduce your reader to the topic and what you will be researching. 80/100