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The occurrence of the phenomenon of high real estate price makes the resource allocation not in accordance with the reasonable market laws to run,but by the distorting economic behavior to operate secredy,which makes partial developers and officials who get profits from it more willing to maintain the current land system,rather than to establish the market economic order according to the direction of reform,thus impede the development of China’s reform;at the same time,such behavior also results in the reduction of the social welfare.
The occurrence of the resource of high real estate price makes the resource allocation not in accordance with the reasonable market laws to run, but by the distorting economic behavior to operate secredy, which makes partial developers and officials who get profits from it more willing to maintain the current land system, rather than to establish the market economic order according to the direction of reform, thus impede the development of China’s reform; at the same time, such behavior also results in the reduction of the social welfare.