China’s Urban Housing Price Changes And Real Estate Policy In The "Eleventh Five-Year" Correlation

The real estate, as a pillar and basis industry of national economy, is more specialin our country. Its development is closely related to the rapid development of economy.The stable and benign development of our real estate can promote the prosperity of oureconomy. In contrast, too much real estate bubble produced in the development candestroy China’s financial system, and even bring recession to our country. So,how tomake our country’s real estate develop more benignly and healthily has become a newtopic which need to be researched for our government.In recent years, as the rapid warming of the real estate market in many big cities,such as Beijing, Shanghai, Guangzhou. It has caused many problems in many otherlarge and medium-sized cities---the rising prices, skyrocketing land prices,overheated real estate investment, too high prices and so on. At present, our country isin the planned economy in transition and the market economy is not perfect, so inorder to keep the real estate market develop more stably and healthily, it has becomean major topic that how our government regulates and standardizes the real estatemarket, analyses the real estate from an economic angle, and strengthens the policiesresearch of our government by using economy means. In real estate market, the key tomeasure the effectiveness of the real estate policies and regulate the real estate is theurban residential property prices. So, the relative analysis on fluctuations in housingprices in large and medium-sized cities and the effects of government’s policies isbenefit for us to solve the problems in our real estate market.In the commodity markets, the price is determined by demand and supply. Sodoes it apply in the real estate market---housing prices are jointly determined by thehousing demand and housing supply. Similarly, the housing equilibrium price is at theequilibrium point of housing demand and housing supply. Of course, in real life, manyother complex factors also affect the housing prices by changing the real estate supplyand demand relationship. Our country is also the real estate market through theprinciple of macro-control. My research idea is very clear. Aiming at the tendency that the housing prices arerising constantly, we will analyze it from the surface to the nature. The research on thereal estate price fluctuations is divided into three parts: Gathering statistics of China’surban housing price fluctuations from2005to2010and analyzing the trend of pricechanges theoretically; Collecting the real estate macro control policies implemented byour government from2005to2010and classifying these policies; Analyzing thecorrelation of prices and policies by using empirical experiences and demonstrating myown ideas. Despite some other factors, China’s housing price is constantly rising.China’s urban housing price fluctuations and control policies of conquest is still acorrelation. According to the above research ideas, the author will divide the paper intoseven parts. The first part is the introduction of the article which mainly describes thebackground and significance of the study. The second part elaborates the relative theconcepts of real estate and the overview of the application of the theory which makesthe article have theoretical basis and introduce the domestic and international literaturereview in detail. This chapter lists the research of scholars at home and abroad for thereal estate industry. The third part lists10representative cities in China’s housing pricechanges from2005to2011and classifies them into line, second line and third-tiercities which describes the fluctuations of the three categories of housing prices in thepast six years in order to represent the fluctuations of in the level of urban housingprices nationwide. The forth part gathers statistics of the macro-control policiesimplemented by our government in the past6years. According to the differences of theregulatory nature, we classify them into many kinds. Later in this part we describe themechanism of action of these macro-control policies of China’s urban housing prices.The fifth part is the empirical study of urban real estate market situation. It aims at theempirical test of the effect of China’s macro-control policies on housing prices byusing the residential sales prices of China’10cities and the relative factors of realestate policies. According to the analysis of theoretical framework, as well as thelimited available data, variables chose in this chapter includes: real estate sales prices,income, money supply, price level, loan rate, land prices and the taxes of real estateenterprise. The empirical analysis of these factors identifies whether China’smacro-control policies have a remarkable effect on the fluctuations of housing prices.However, the result of model shows that China’ real estate policies are related to thefluctuations of housing prices indeed. This also confirms the impact of China’s real estate directly. The sixth part is to forecast the main points of China’ macro-controlnext and provide some advices for the problems existing in China’s present real estatemarket. The last part is the summary of the article.