Study On Relationship Between Chinese Commercial Housing Price And Land Price

From July 1998, real estate market in China marketing operation started after the implementation of "the State Council on further deepening of the urban housing system reform and accelerated housing construction notice". Chinese economic develops quickly and people’s income is increasing, housing prices rises rapidly at the same time. Not only housing price, land prices began to rise along with the further deepening of land transfer system. Housing price land land price are the two important parts of real estate price, so their own influencing factors and their mutual relation have an important significance on the real estate market. This paper aims to qualitative and quantitative research on the relationship between housing price and land price. Then judge the appropriate levels of housing price and land price and the appropriate proportion of land price for housing price. Finally, put forward relevant recommendations for the government, land providers and enterprises.Firstly, this paper introduces constitution of real estate market and its influencing factors, the real estate development process and its impact on the real estate development, constitution of housing price and land prices and each influencing factor. Then, this paper does qualitative research on the relationship between commercial housing price and land price. Following is quantitative research through the establishment of simultaneous equations model. Using Eviews software to analyze the results and then obtaining their mutual relationship formula between housing price and land price. According to the simultaneous equations, the conclusion is the parameter of land price for housing price is 0.07. In the case of other parameter remain unchanged, land price rise or fall 10000 yuan/m2, the housing price corresponding rise or fall 700 yuan/m2. The conclusion is the parameter of housing price for land price is 0.16. In the case of other parameter remain unchanged, housing price rise or fall 10000 yuan/m2, the land price corresponding rise or fall 1600 yuan/m2. Following, collecting housing price, land price GDP, CPI and per capita disposable income in Shenyang, determining the appropriate level of housing and land price through comparison and analysis of increasing ratio. Among them, the determination equation of adequate level for commercial housing price is HP= 1006.878+1.98GDP+14.46CPI-0.357PDI. The determination equation of adequate level for land price is LP= 1657.454+0.106GDP+0.082HP. Land costs occupy average ratio of 28.36% of the housing price based on actual project data. The ratio interval ranges 10.85% to 45.86% when using one time of root mean square error to estimate. In the face of singing along with the land price, real estate regulation is facing unprecedented pressure. Land price for housing price is absolutely rigid expenditure. So we could reduce land price for reducing housing price. Finally, based on research result, put forward relevant recommendations for the government, land providers and enterprises.