Measures Of Real Estate Costs And Price Controls

The real estate is the pillar industry which can promote the development of national economy,and it’s closely related to national housing interests,so the extremely high prices is the focus of attention.With policies having been introduced to control prices,the spearhead of the various policies point to the developers,in addition to the profits of developers,the cost of real estate is the key factor of high prices,the study of all aspects including the structure of the various cost factors,size,and profit main bods,seems particularly important.This paper mainly focuses on analyzing the real estate cost factors.Firstly defining its composition and introducing how to measure the cost factors,then doing empirical research of Xi’an real estate single costs factor by the method of percentage structure,then getting contribution rate of every cost factors on the basis of house prices.The first four factors which impact on Xi’an house prices are construction costs,land costs,implicit costs,and taxes.Then analyzing why these four cost factors make house prices variate,trying to find the root causes of high house price. After working out the correlation between the size of the price and every cost factor,doing further regression analysis of costs of significant correlation,we’ll see the degree of the various cost impact on prices.Secondly,empirical research on the integrated structure factor of the Xi’an real estate costs,the cost structure is divided into two categories,namely the explicit costs and implicit costs,and the direct costs of construction projects and the company operating costs.Respectively measuring the structure of these two types of factors,and analyzing the correlation and regression,in order to draw how these two types of factors impact on house prices.Finally,on the basis of investigating and inductive analyzing the whereabouts of the interests of the cost factors,putting forward policy recommendations on controlling house prices.