Empirical Research On The Impact Of Air Pollution On China’s Real Estate Market

The real estate industry is a pillar industry of China’s economy.The rapid growth of housing prices has made it one of the most popular concerns of the people,so does the air pollution since the all-round broke out in 2012 of haze.Therefore,many citizens are thinking about relocating to livable cities.Not only is our country encountering such a problem,haze problem also occurs in New Delhi,India.Massive loss of the population in 2013-2016 results in a 21.7%decline in housing prices in New Delhi.Will this also happen in China’s real estate market?This paper studies the real estate market from two aspects of long term and short term.This paper selects the data of annual average transaction price of house and land of 104 cities in 2003-2011.It was found that the emission of industrial sulfur dioxide did have a significant negative effect on the real estate market,which made the logarithmic housing price drop by 3.65%and the logarithmic land price down by 14.32%.Taking into endogenous relationship,this article introduces the policy impact of exogenous heating in short term data,that is heating policy.This paper choose the data of 2014 June 1-2015 June 30th.The results showed that heating did cause a greater increase in air Pollut concentration in the northern China,including 17.51%up of Log(AQI),17.41%of Log(CO),11.49%of log(NO2),37.80%of log(SO2)and 28.36%of Log(PM2.5),and 15.72%of Log(PM10).Pollution rises,resulting in a greater decline in house and land prices.The result showed a decline in the logarithmic house price of 8.82%and logarithmic land price of 17.61%.This paper finds that air pollution has a significant negative effect on the real estate market,and heating has caused a greater rise in the air pollution in the north,resulting in a greater negative effect on the real estate market.Air pollution not only affects the real estate market,but also has serious affects on normal life of the residents and sustainable development of China.Therefore,combined with the reality of our country,this paper gives some policy recommendations for air pollution control,which provides a new perspective for local governments to formulate policies.