An Empirical Study On The Relationship Between Land Price And Housing Price In Nanchang

In recent years, the rapid development of real estate industry is very impressive. As one of the pillar industries of national economy, it played an irreplaceable role in the rapid, healthy, and steady development of China’s economy. At the same time, it also becomes a hot spot in people’s consumption and investment. The relationship between land price and housing price, as a matter of course, became the focus of this hot spot, and it is attracting widely attention and research. As two important indicators of real estate market, their relationship has influence not only on the healthy development of real estate market itself, to a great extent, also on the common people’s quality of life, and even on the harmony and stability of the whole society. As a result, a study of the relationship between land price and housing price has practical significance. Through probe into the relationship of land price and housing price, problems in the development of real estate market can be found in time, and then policy proposals for the government in regulating real estate prices can be provided in theory, and the smooth running of social economy can be maintained.This thesis is on the basis of rent theory, location theory, land supply and demand theory, theory of income from property, the cost analysis theory and real estate valuation theory, and with the reference of domestic and international academic study on the relationship between land price and housing price. On the specific situation of Nanchang, it applies empirical analysis and normative research method. On the basis of theoretical analysis and present situation, as well as Granger causality analysis of land price and housing price in Nanchang, the author of this thesis draws the conclusions that land price increases due to the rising of housing price; housing price is the result of supply and demand relationship of the same period of the real estate market and land price of the previous period; and land price and housing price are interacted in the long run. Besides, this thesis also puts forward specific policy proposals:adjusting the housing supply structure, guiding the rational consumption of housing; paying close attention to price movements, and stabilizing housing supply and demand; promoting reasonable return of housing prices, and resolutely curbing the irrationally rising trend of housing prices; strengthening land regulation, and cracking down illegal activities in the process of land use; improving the construction of real estate information network, and enhancing its transparency and accuracy.This thesis is divided into five parts, each chapter is as follows: Chapter1Introduction. In this part, it mainly describes the research background, research purpose and significance, and makes an explanation of the Innovation in this thesis.Chapter2Definition and Basic Theory concerning Land Price and Housing Price. In this part, it introduces mainly used and basic theory about land price and housing price. And it also defines land price and housing price.Chapter3Analysis about current situation of real estate market in Nanchang.. First, introduction of environmental, economic and social development in Nanchang. Then Nanchang’s general situation of land supply, general situation of commercial housing market, trend of land price and housing price are analyzed. On this basis, problems in the development of real estate market in Nanchang City are found.Chapter4Empirical Analysis of Relationship between Land Price and Housing Prices in Nanchang. The relationship between land price and housing price are Empirically Analyzed. Land transaction price index and housing sales price index during2006to2010are collected in this chapter. Through the use of ADF stationary test, Granger causality test and a series of econometric methods, whether a causal relationship exist in land prices and housing prices is discussed.Chapter5Conclusions and Policy Recommendations. According to Granger causality test results and analysis of main factors concerning land price and housing price in Nanchang, conclusions of this paper is drew. And Policy recommendations for the guidance of land market and real estate market are proposed. Last but not least, it summarizes the results of this study as well as main points and conclusions.