An Empirical Study Of The Relationship Between Urbanization And Real Estate

Urbanization is the only way for a certain country or an area to turns from tradition to modern, from backwardness to civilization. The fundamental purpose of accelerating urbanization is to promote economic and social development and improve people's living standard and quality. From the aspect of the development of world economy, urbanization is a piece of important experience to accelerate economic progress.Model identification shows that the random effects and variable intercept model is the specific model on which the study of the co-relation between urbanization and real estate based. Unit root test results show that Urbanization Rate(UR), Average price of Buildings Sold(APBS) and Investment in Real Estate Development(IRED), has a unit root. There are no unit root among UR, APBS and IRED after 1st difference. Panel co-integration test results illustrate that urbanization rate, real estate development companies and investment in housing amount and average selling price of goods with a co-integration relationship between them. Quantile regression concluded that Floor Space of Buildings Completed has a positive marginal effect at urbanization rate, the average house sale price of goods on urbanization has a negative marginal effect at urbanization rate, at the first seven decile point, Investment in Real Estate Development has a stable influence up on urbanization rate. From 8th quantile point, the effect from IRED to UR tend to be slow.Finally, the corresponding countermeasures and suggestions are taken for promotion of the urbanization and real estate industry of the Zhejiang Province.