Speculation about the Continuously Rising of Housing Prices in China
本文探讨中国房价持续上涨的原因，认为金融机制（尤其是预售制度）是主要驱动因素，而非城市化或收入增长。
There are many speculations on the reasons and factors for the continuously rising of housing prices throughout many Chinese cities. The literature blames urbanization, increases in incomes, and strict control on land supply. Based on primary examination of financial operation of real estate development, it is concluded that it is financial mechanism that derives housing pricing growth. Due to the combination of shortage of own financial resources and limited loans from financial institutions, developers heavily rely on presale system that enables developers to finance building construction. Continuous increase in housing prices is necessary to make presale system work. This is because consumers are not only easily convinced to buy houses for investments but more importantly afraid that they have to buy one even for resident at much higher prices later. [