Research On Relationship Between Real Estate Price And Economic Policy

Since the real estate market reforms in1998, China has ended the kind of publichousing distribution system, and gradually began to reform the real estate. With therapid growth of the economy and monetary reform, the real estate prices rise rapidlyin China. The real estate prices not only affect the development of the real estatemarket, also largely affect the purchasing power of residents. Suppressing Irrationalrising of commercial housing to ensure the healthy development of the real estatemarket, the state has adopted a series of macro-control policies, but the prices of realestate did not return to the rational level.The first chapter of this paper is the introduction, including the ideas, methods,and the contribution of this study, and then the third chapter reviews the literatureshould and how economic policy intervene real estate prices as well as thegovernment’s practical experiences. The main conclusions include: If the governmentpursuit of economic growth or the low unemployment rate, the real estate prices willrise rapidly. Because of the government’s acts of dishonesty, regulatory policies willbe effectiveness. The determination of the government to control prices, the policy ofcontinuing also largely affected prices.The fourth chapter, based on VAR model and the quarterly data of2000-2012, andusing the impulse response function and Granger causality test, we explain the causesof the real estate bubble from a very different view. We mainly think about why thegovernment can’t stable the estate industry easily. Empirical evidence shows that: thetax is not significant on curbing housing prices and there is a significant lag. Socialfixed assets investment is used to reflect the national pursuit of a higher economicgrowth rate, we found that a significant role in the social investment in fixed assets ofthe rising prices, that is, if a government excessive pursuit of economic growth andthen the estate rose. In the short term, the impact of interest rates on house prices isweak. Exchange rate used to reflect international funds expected impact ofcommercial housing in China, but this variable cannot be significant test, therefore,delete this factor. Total credit no obvious impact on house prices in the short term.However, in the long term, there is a significant boost.Overall, the real estate price both impact on transmission of Chinese economicpolicy and exist some obstacle. In order to improve this situation, this paper gives an appropriate proposal combined with empirical analysis results.