Although the average price of residential houses in the United States, after converted to Renminbi, is about 8 000 yuan per square meter, the houses in the US are not sold in terms of building area, as most Chinese property developers do when they sell their houses. If US property developers sell their houses according to the building area, then the housing price will be even lower than 8 000 yuan per square meter. In most big Chinese cities, such as Beijing, Shanghai, and Shenzhen, houses are sold at a price even higher than those in the US.

　　The high housing sales price in large cities in China proves that Chinese real estate market does have some bubbles. Moreover, Chinese houses can not be compared with houses in the US in terms of building quality, environment and supporting facilities. Furthermore, it should be noted that American people's average income is several dozen times higher than that of Chinese people. How can the Chinese afford to buy a house which is even more expensive than that sold in the US?

　　At the beginning of 2007, Chinese government issued a set of policies that aimed to benefit the public. Now in order to reduce the high housing prices, the government can regulate(控制) the real estate market by raising tax on property industry and controlling the release of loans and lands to property developers. At the same time, the government should allow people to build

　　more houses through various fundraising channels, such as funds collected from buyers or raised by working units. By applying these multiple means, it is expected that the high housing prices can be lowered.

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