Is It Oversupplied in China's Real Estate Market? Based on the Measurement of the Supply-Effective Demand Ratio

Because the real estate industry has the characteristics both of the necessities of life and investment products,this paper analyzes the formation mechanism of the excess supply in real estate market.On this basis,we build the indicator that is the supply-effective demand ratio for measurement of the oversupplied real estate market.Through the study of the supply-demand effective ratio of China's real estate market,we thinks that: China's real estate market has experienced two periods—firstly was in short supply and then oversupplied;between 1995 and 2006,China's real estate market was in short supply;from 2007 to 2011,it tended to be oversupplied gradually,especially in 2011.The indicator we built in the paper and the result we received have a strong reference value for both enterprises and government on judging the situation,strategy and policies of the real estate market.