Study On The Relationship Between The Housing And Real Estate Than Hangzhou

The real estate market has developed significantly as the traditional housingsystem that apartment was distributed by the government was cancelled in1998. But the focus was turned into housing price which has been risingrapidly since then. So it is necessary to resolve this problem by taking measures tostabilize housing price. in this research a concept called the ratio of landprice to housing price(RLH), is created. RLH describes the proportion of landprice to housing price and shows confidence when a real estate developerconsiders purchasing some land. in this report we got time series ofhousing price in Hangzhou city which started in the third quarter of2006and comes from government, we also got another time series of RLHwhich started at the same time and comes from investigation. Therelationship between housing price and RLH is figured out by usingGranger-Causely Test. The result shows that housing price is the reason of RLH whilethe RLH is not the reason of housing price. This research confirms the relationshipbetween housing price and RLH,and further conclusion that housing price is thereason of Land price. then a real estate market mechanism is described toanalyze the reason why housing price is so high. Finally,through analyzing,suggestion is given to government and developers.