Changsha City Residential Real Estate Market Supply And Demand Analysis

The real estate market is closely related to people’s life. It will drive the development of the national economy and meet the basic needs of people. However, China’s housing price has soared in recent years. The price is so high that it becomes a heavy burden for people. In2011, a new round of macro-control begins. At this situation, second and third tier cities like Changsha have become the main area of development of Chinese real estate market. Therefore, we need an objective analysis of Changsha real estate market under this new situation.This paper selects the data from1996to2010as sample and establishes multiple linear regression models of demand and supply respectively. And then it obtains the effective demand and supply of Changsha real estate and the level of balance from the analysis in recent years.The article consists of five parts. The first section briefly introduces the research background and significance. The second part describes the relevant concepts of the real estate industry, characteristics, market operation mechanism and the influencing factors on demand and supply. The third part analyzes the developing background, the macroeconomic environment and the supply and demand situation. It comes to a conclusion that the real estate market of Changsha has great potential, but there are also some problems, such as the imbalance of supply and demand, unreasonable structure and so on. The fourth part firstly uses Grey Relational Analysis and SPSS analysis to obtain that Changsha City’s GDP, per capita housing construction area and per capita disposable income can be used as the main influencing factors of demand and urbanization rate and real estate development and investment can be used as the impacting factors of supply. And then establishes multiple linear regression models to analyze the effective demand and supply of real estate market of Changsha City. On this basis, it draws the conclusion that the level of imbalance of residential market in Changsha has variable changes in recent years. The fifth part provides some appropriate recommendations to government departments and relevant departments of real estate development enterprises.