Research On The Impact Of Online Media Coverage On The Real Estate Market

Real estate plays a crucial role in China's economy,constituting one of the largest portion of Chinese gross domestic product(GDP).As real estate is associated with abundant related industries from the perspective of industry chain,it is of extraordinary significance to pore over the development of the real estate market in a bid to guarantee the economic healthy operation under the New Normalcy.Due to housing's two different features-consumption and investability-as a unique commodity,the factors of the real estate market could include elements of the general consumer goods market and those of the investment speculative commodity market.Therefore,it is feasible to look at the real estate market from the angle of behavioral economics.External factors,particularly media reports,inevitably influence the public psychological expectation which is vital for human behavior decision-making.In order to test the hypothesis above,this paper studies the correlation between media coverage and the real estate market,conducting regression analysis respectively on the basis of 3 aspects of the real estate market-including demand,supply and priceas well as 2 dimensions of media coverage-the level of attention and attitude orientation.It is found that there is a certain relevance between the two.In a nutshell,media reports promote both the demand and the supply of local real estate market and have a positive correlation with housing prices.These correlations mentioned above are slightly different due to regional differences.Considering the internal relevance of the real estate market,the adjustable mediation effect between volume and price effectively transmits the impact of media coverage on the real estate market.At the same time,the operation of the real estate market is closely related to policy release.Therefore,this paper analyses the regulation of policy on media coverage and the real estate market as well based on the research of the double-limit policy and the Demolition Reform Policy.It is found that media coverage adjusts policy in the way that is not absolutely in line with the original intention of the policy and undermines policy effectiveness.Seeking for the robustness and validity of demonstration,this paper discusses the endogeneity of data and does find that there is endogenous phenomenon,revising it with the twoorder least squares method.According to the research,it is apparent that media coverage exerts influences on the real estate market,which sometimes could be intensified or weakened under the regulation of policy.For this reason,it demands that government agencies should manage and control the media reports effectively to prevent excessive emotional reports from causing unnecessary fluctuations and instability in the market.