China's Commercial Housing Price Space To Pass

As the reform of the economic system, urban housing system and urban land use system, China's real estate industry has gradually flourished. Especially in 1998 ,china has adopted a notice that deepening the urban housing system reform to speed up housing construction. The notice Provisions to stop the distribution system of houses and realization of housing monetization. Since then, China's real estate industry got into a rapid development and become a pillar industry of national economy, beside that China's real estate industry played a pivotal role in the development of the economy.Recently, China's real estate prices rose faster and faster. In some areas, housing prices continued to soar, the rising speed has far beyond the speeds of economic growth and income growth. China's real estate prices have become a destabilizing factor for sustained and stable development of the national economy. Excessive growths in real estate prices continue to affect people's quality of life dramatically. More and more people consider that it is difficultly to purchase a house and most of the people who have a house have become the house-slave. At the same time, this growth trend has also led to inefficient allocation of resources. People are used to investment or speculation in real estate; thereby the funds in the industry on the investment have reduced and speed the serious of asset bubble. Therefore, skyrocketing housing prices have become important economic and social problems, which caused widespread concern of people.In the existed studies, a large number of scholars researched the following content: Whether there existed the real estate bubble, how to predict future price movements more accurately and provided a theoretical support and some effective policy guidance for government departments to better control the real estate market. When these scholars in-depth study of the impact of price factors and price forecasts, the analyses of spatial dimensions impact on housing prices which taken into account are less. At the same time, in the frame work the research of regional interaction from the Housing price point to the literature is still very rare. Very few studies has considered the interactions between regional housing prices, In these documents the research methods based on time series co-integration analysis and Granger causality tests .Given the narrative which has mentioned above, this paper attempts to test the influence degree between different regions abased on considering spatial dimensions and the interaction of space. In this paper, we try to explore house prices spatial diffusion by using spatial panal econometrics model and constructing the spatial econometrics model of house prices diffusion. We try to use conclusions this paper to make up the theoretial defects of house price affective factors and the prediction of house prices. By using spatial lag coefficient model and spatial error coefficient model based on the panal data between 1999-2007 in Chinese 35 major cities,we can make the two following conclusion :1. Among of the country, the East Midlands, the West of East and the West Midlands, there will be the spatial correlation in house prices.2. Among of the East Midlands, the West of East and the West Midlands, there to be regional interaction in house prices. While this relationship not only by the price, but also by factors which not considered errors.