Comprehensive Appraisal And Empirical Analysis On The Virtual Operation Of Real Estate In Beijing

Beijing, the capital of People's Republic of China, is the most important and well developed city in north China, as well as the leading force in Bohai New Development Area. Economic development, especially the real estate industry, has been one of the most significant forces for Beijing and its neighborhood. However, due to different economic and political policies and higher development level, Beijing has taken the role of enhancing employment for north China, or even the whole country, which providesnot only labors, but also the virtual demand for estates. Because of improvement of market economy, relatively free capital floating, inflation for many years, and rural and less-developed area labor force transfer, buying real estates become one of the most popular and important investment, which causes unpredictable high growth in estate industry and the its virtual nature shows obviously. According to"China Statistical Yearbook 2009", contribution of real estate industry to GDP was up to 70%. Hence, analysis and conduction of real estate's virtual nature and its trend is becoming more and more urgent.From the perspective of relations of entity economy and virtual economy, virtual operation of real estate industry in Beijing is analyzed. Based on data from 1992 to 2009, author uses multiple linear regression model P=β0+β1*Y+β2*L+β3*S +μto test and verify the virtual nature and level of virtual operation of real estate industry in Beijing, and confirms the fact that there is significant virtual operation in estates market.In the end, based on theoretical and empirical test, author provides accordingly policies to conduct and control real estate industry to guarantee public's interests and fast economic growth.