Property prices

In my opinion the property bubble won’t burst in tier 1 cities because the house prices will rise in the future. Why? The first reason is that tier 1 cities have the best social resources such as advanced education, better medical treatment, more career opportunities. These benefits can attract a large number of people who want to settle down to in these cities and some people even give up a comfortable environment in other cities and come here to live in poor housing conditions. How to settle down here? Buy a house.

The second reason is that since the density of population in these cities is increasing and the land is limited, it means the number of houses in these cities are limited, so the demand for houses to buy is exceeding the supply. In the situation that 10 people want to buy a house but there is only one house to sell, the highest bidder will get the house, so it leads to price rises.

One thing which can improve the prices, is government policy. In the housing markets of first tier cities, they can limit the purchases and reduce loans. This is one way for the government to control prices. When prices are too high, limiting  purchases can slow the rise of prices effectively. As long as prices don't fall, the bubble won’t burst.

Hello Olivia,

An interesting article about house prices and government intervention. I can understand everything but have made improvements to  the style to make it flow better.

Hope this helps

Bob

Property prices;

In my opinion the property bubble won’t burst in tier 1 cities because the housing price will rise in the future. Why? The first reason is that tier 1 cities have the best social resources such as advanced education, better medical treatment and more career opportunities. These benefits can attract a large number of people who want to settle down to these cities. Some people even give up a comfortable environment in other cities and come here to live in poor conditions. The second reason is the density of population in these cities are increasing and the land is limited, it means the number of houses in these cities are limited, so the demand of buying a house is exceeding the supply of selling houses. As an example, if 10 people want to buy a house but there is only one house to sell, the highest bidder will get the house, so it leads to prices rising. Evidence can prove the price will rise if government policy on housing first tier cities is to limit the purchase and reduce loans. This is a way for the government to control prices. When prices are too high, limiting purchases can slow the rise of prices effectively. As long as prices do not fall , the bubble won’t burst.