Correlation Between Exchange Rate Fluctuation And Price Fluctuation Of Real Estate

Foreign exchange is a special goods which is a equivalent to normal goods. The price of Foreign exchange(exchange rate)has its own special characters——relative and transmit in and out ,besides normal goods'characters. Because real estate is relating to the land, and the land is short and limitable, so in the long run, real estate is a short goods. Because of this character, the price of real estate has its own character——rise in the long run. Analysing the influence factors that the fluctuation of exchange rate and the fluctuation price of real estate are good for understanding their relation. Although the factors that the fluctuation of exchange rate and the fluctuation price of real estate are different, because the are both goods, they must have some common characters, the influence by the interest rate,supply and demand,exception. In addition, as one is a special goods'price, the other is a short goods'price, they have their own special characters.We discover they have a relationship between the exchange rate fluctuation and the fluctuating price of real estate. The fluctuation of the exchange rate maybe make the price of real estate to rise,lower or fixed, this is according to a country's economic situation. We're attention to how tendency the price of the real estate's will be at the background of RMB rising. The past theory analysed the price of the real estate form the nature, but this article apply the exchange,GDP and so on, try to make a model between the exchange rate and the price of the real estate, explain the price of the real estate how to be influent by the exchange rate from the measure.Because the currency rose, lead to real estate foam which happened in Japan. We analyse the reasons and it's disadvantage from Japan. At last ,at the background of RMB rising, using for reference, we advance some measures .