How many officials can afford their houses?

• Source: Global Times
• [23:45 June 30 2009]
• Comments

For instance, some institutions applied and were approved for building economical and affordable houses; some raised funds to build the houses; others sold public houses at cost. Some ministries and local departments tried every way to build houses for their staff.

So the housing problems of many civil servants have been solved easily through this housing supply system, which dissociates them from commodity houses. Nearly all the houses civil servants own were sold at cost.

This privilege was not enjoyed only by civil servants. By following what their superiors were doing, some institutions with certain administrative powers did the same thing.
Universities and State-owned enterprises were unwilling to fall behind. So the housing problem of administrative officials, quasi-officials and academic elites was solved through a loophole in the housing market. High housing prices are no longer any of their concern.

Some local officials and academic elites look at housing prices from an “unworldly”
perspective. Some academic elites actually advocated high housing prices. Perhaps this is because they still receive welfare housing. If this trend is extrapolated to include all of the different institutions in China, it’s no wonder why housing prices are so high.

These officials and elites give no consideration to the fact that housing prices are far beyond the purchasing power of average citizens. They advocate the rationality of high housing prices not on behalf of the public, but for themselves. If they all had to buy houses in the free market, we would have the chance to see the other side of the coin – housing demand would increase, while the prices would absolutely slump.

The logic is obvious: only when unusually high housing prices impact the benefits of privileged officials or elites will they really control housing prices, restrict land use, and govern the real estate market.
The market is currently filled with misinformation and cheating; but officials now lack incentive to publicize the cost of real estate and take action against developers who disrupt the market.

Once officials and elites have to buy houses at market prices, prices will fall. Without officials allied in keeping costs high, how could housing prices ever go back up?