Differentiation And Explanation Of The Increase Of Urban Housing Price In China

Based on the data of housing prices in 69 large and medium-sized cities in China from 2005 to 2015,this paper constructs different panel data models from two perspectives of supply and demand,and then explains the reasons for the differentiation of urban housing prices in China.Supply side,this paper studies the relationship between SDR and land prices and urban housing prices.The empirical conclusion is that increasing land supply and controlling land prices are measures to reduce urban differentiation and the rise of urban housing prices.Demand side,this empirical part studies the impact of the credit level,research and education investment proportion,population,income and income expectations and other indicators on Chinese housing prices.Because of the strong linear assumption of the model,it may cause the error of the model setting,so the semiparametric panel regression model is introduced.We also introduced panel smoothing transformation regression model.The conclusion is that all the variables have a positive effect on housing prices.In spatial panel model,we find urban housing prices will be affected by the neighboring cities' housing prices.In the empirical study,69 cities are divided into 3 categories using the method of Hierarchical clustering.The empirical part concludes that all the variables promote housing prices.Different effects result to differentiation of urban housing prices.The results show that:land's SDR has a negative effect on housing price while land price,credit level,research and education investment proportion,population,income,income expectations,and price income ratio have a positive effect on urban housing prices.These factors are important to promote the differentiation.Real Estate regulation should not use the same method in different cities.The big cities'governments should increase land and housing supply in order to reduce residents' excessive expectations.