Analysis On The Price Of Real Estate In China And Its Influencing Factors

The price of residential real estate in our country has been keeping on increasing in recent years. It has not only influenced the living standard of citizens but also evolved into an unstable factor for the national economic development. As a result, the price of real estate has become an economic and social issue, which has gained extensive attention.Factors which have effect on real estate price can be categorized into three groups: general ones including economic factor and systematic factor, etc; regional ones including geographical location and natural environment, etc; and individual ones such as the structural characteristic of real estate and so on. Currently, investigations on factors affecting the price of real estate in our country contain qualitative analysis, quantitative analysis and empirical study. Nevertheless, there is still a lack of systematic study about which factors the price of real estate is sensitive to and to what extent these factors have influence on the price of real estate. Based on the relevant theory about the price of real estate, main factors affecting the real estate price were analyzed from its concepts and characteristics by taking price of real estate as the research object. Furthermore, based on the statistic data abut real estate, VAR model and pulse response function were used to demonstrate to what extent different factors have influence on price of real estate. Conclusions were given at last. This research includes the following 6 parts:Part one is the introduction. It firstly represents the research background. The significance of studying factors affecting the price of real estate is stated briefly. The research method, innovative points and limitation of this study are provided subsequently.Part two is the literature review for further analyses. It begins with the theories and main achievements at home and abroad on the factors that affect the price of real estate. It is followed by the review of development and research status of the theories about the price of residential real estate. Part three comes to the connotation and formation mechanism of the price of real estate. Concepts and characteristics of price of real estate are presented firstly. Then its mechanism and structure are discussed.Part four is about the factors affecting the price of real estate in terms of cost, economy, supply and demand, society and policy, which is the key part of qualitative analysis in this thesis.Part five presents the empirical model. According to the sample data, statistic software of Eviews is used to perform empirical study based on the theoretical research. By constructing the economic model, the computational results are analyzed and the meanings of variables are explained. These are used to further evaluate to what extent main factors affect the price of real estate. This part is the key part of empirical study in this thesis.Part six is about the policy suggestions. Based on the above qualitative and quantitative analyses, personal suggestions are provided on the land system, revenue and financial policy, and standardization of Real Estate market etc.