Study On The Influencing Factor Of Chinese Real Estate Price

As one of our national pillar industries, the real estate industry is closelyconnected with many industries. The reasonable real estate price is the key to socialharmony and people’s livelihood. However, China’s real estate market is not mature yet,it still exists the problems of price keeps on rising, the supply and demand structureof the real estate market is incompatible, and the increase scope of housing price in tierone and tier two cities is oversized. Therefore, the study of factors affecting the priceof real estate is particularly important. Many studies about the price of real estate havebeen made by scholars at home and abroad, the results show that the factors affectingthe price of real estate is variable and complex. This paper starts with classic economicsupply and demand theory, and based on the mentality of pricing mechanism of supplyand demand determines the price of real estate, divide many factors affecting the priceof real estate into three categories of affecting the demand for real estate,affecting thesupply of real estate and affecting both the demand and supply of real estate to studyand discuss the cause of the housing price change,and find out the main influentialfactors of housing price.This paper first introduce that the real state is different from other commoditiesand describe the characteristics of the demand and supply of real estate. Next, itanalyze the current situation of China’s real estate prices, conclude that the real estateprice has been rising, have regional and bubble, summarize the main factors affectingthe demand for real estate, affecting the supply of real estate and affecting bothdemand and supply of real estate. Then, it use annual data in1998to2012to performgrey correlation analysis and factor analysis for the relevance of seven affecting factorsand real estate price, the results of grey correlation analysis showed that the demandand supply level variables has maximal relationship with the price of real estate, landfinance problem is the root cause of the high housing prices in China,the financialsituation of local governments relying on land can be improved by levying tax on stock room. Completed area of residential, per capita disposable income, GDP, money supply,this year’s land acquisition costs of real estate development enterprise and so on, areclosely related to the price of real estate, the government should develop policies frommultiple levels. The result of factor analysis divided several variables affecting the realestate price into two major factors, in2000-2006and2009, the variables reflecting theexpected real estate market conditions has a greater impact, after2009,the variable ofcurrent real estate market condition had a greater impact on the real estate prices,which reflects the supply and demand in present market are exuberant and ourcountry’s regulative policies such as restrictions have inhibited the speculativedemand.At last, it puts forward some policy proposes from the perspectives of theadjustment of the supply and demand of real estate, at real estate supply level, thecurrent situation of government relying on land finance and cornering the land andmarket can be improved by developing the tax policy on real state and the land transferof collective ownership of rural land, strengthen the governance of land market toadjust the supply structure of real state; at real estate demand level, ease up thecontradiction of supply and demand by strengthening the construction of rentalsecurity housing and set up housing information systems to combat speculative housepurchases; both the demand and supply of real estate can be influenced by monetarypolicy.