Test For Relationship Between Existing Property Sales Price And Rental In Beijing

Using cointegration relationship test and Granger causality test, some conclusions about relationshipbetween existing property sales price and rental in Beijing are obtained. The property sales price and rentaldo not have steady-going relationship in long run. The rate of change of existing property sales price is thedominant factor of the rate of change of housing rental in short run while the rate of change of existingproperty sales price is explanatory variable of housing rental in metaphase. The sample of month priceindexes of Existing Property Sales Price and Rental from Jan, 2004 to Feb, 2006 is given.