【正确答案】 China has been struggling with rapidly rising house price for a long time which results from the unpleasant truth that there are fewer and fewer Chinese who can afford the house, especially in metropolis: If measured by disposable income, the housing price in Beijing has surpassed that in UK and Japan.
In September this year, China's housing prices rose nearly 9% year on year, with uplift reaching the highest level of three years. The effort of Chinese government to cool the real estate market through the measures of purchase limits failed because of the interest conflict among governments at different levels. The central government is worried that the reality that many Chinese people cannot afford the house will bring about the social chaos. Therefore the goal of the central government is to guarantee that the apartment is affordable. However, the local government holds different points of view. The profit made by construction land transfer is an important source of income, therefore the local government wishes to remain the house price at a high level. The most serious problems happen in the capital Beijing and financial center Shanghai, where good job opportunities attract more and more people to go there.