More+Chinese+cities+limit+home+purchases+to+cool+property+market-+Wendy+Leung

Source: http://news.xinhuanet.com/english2010/china/2011-02/19/c_13740070.htm

Summary: Real estate price in China and Shanghai city especially been a major worry for residents because its more and more expensive. Middle class workers cannot afford the price. Many urban residents began to move out of down town Shanghai to the border of the city. In this article, it revealed that Shanghai and other fast growing cities in China began a new policy that restricted home purchases of each household. This was made by Shanghai's Housing Guarantee and Administration Bureau a few days ago saying that local registered families who already own more than two estates. Where as non-local registered families who have owned at least one home. Not only so, the non-Shanghai registered families that doesn't have all the documents that is being certified by the government are forbidden to buy properties in Shanghai now. As an result of this issue, the sales of commercial homes fell 42.4% in 2010. But the price range still hadn't fell but rose 20995 RMB which is 7.6% increase per square meter.Not only Shanghai, Nan Jin, Harbin city and other urbanized cities in China are starting this new policy!

Vocabulary: Supply: Total amount of good and services available for consumers. Demand: Consumer's willingness and desire to purchase a certain product. Macroecnomics: It examines economy in a wider and bigger view such as the change in unemployment, rate of growth, national income, etc. Factors of Production:Resources required to generate good and services. [Entrepreneurship, Land, Labor, Capital] Utility: Measure of happiness or satisfication Substitute: It is a product or service that can satisfy what consumers need and that another product and service can fulfill. A product or service that partly satisfies the need of a consumer that another product or service fulfills.

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Evaluations: Real Estate's been a major concern for Shanghai. Due to the improvement of economy as a country, and the population growth, little land left in Shanghai. The firms wants to make there biggest profits. In this case, they believe selling real estate at a high price will be ok. But the reality is, little people can afford for these houses. After the guessing of the prizes it's been the second busy hangout place after the first place workers. I think this is a crucial product because dmeand decreased when supply is still very high. Real estate people would never wanted to know the measure of happiness.