Study On The Relationship Between China’s Unbalanced Urbanization Process And Real Estate Market

Urbanization process is the inevitable stage for any countries that are going towards market-oriented economy. Real estate market plays a key role in this process. In these years, relevant researches regarding the relationship between urbanization and real estate in China basically stays in the level that there existed a mutual influence between them. However, when it comes to the relationship between the disequilibrium of urbanization development and real estate market in China, the research still stays shallow.The urbanization in this dissertation includes two aspects, that is, land urbanization and population urbanization. Land urbanization further embraces two respects, that is, urban space supply (housing supply) and supporting resources supply such as education, medical treatment, entertainment, business, transportation, etc. Accordingly, the unbalanced urbanization process, in this dissertation, mainly covers the following two aspects:on the one hand, the space supply of land urbanization is much faster than the increase of urban people’s demand; on the other hand, the territorial structure between land space and urban function does not match each other, that is to say, compared to small cities, large cities have accumulated far more high-quality resources while the new-added urban space in small and middle-sized cities lack the sound urban function. The latter one has aroused much attention and a great multitude of data can help prove this issue, while the former one has usually been overlooked. Actually, a lot of people hold the opposite attitude, believing China’s urban space supply considerably go behind the need of urban population. The dissertation collects the data cross2000-2010and proves that in the first decade of21st century, the soaring-up house price always company with the fact that house supply has been much faster than the urban people’s need.Through the statistical description of China’s unbalanced urbanization process, the dissertation deeply analyzed the effect of the unbalanced urbanization process on the real estate market:for one thing, the relative excess of urban space supply, compared to urban population, urges the real average rent to decrease; for another thing, the excessive concentration of high-quality resources in large cities promotes the soaring-up of house price. The disconnected relationship between real estate leasing market and business market has given rise to the malfunction of real estate. The increase of land supply can only serve to restrain the upward rent, but cannot serve to curb the house price. In addition, the malfunction of real estate further caused the growth of speed of land supply and therefore aggravated the disequilibrium in urbanization process.The paper examined the analysis by using Static Panel Date Model. The result of empirical test accords with the theory analysis. Finally, the dissertation analyzed the reasons of China’s unbalanced urbanization and proposed certain policy suggestion.