Empirical Study Of The Relationship Between Residential Housing Price And Economic Fundamentals In China

In this paper, the relationship between residential housing price and economic fundamentals is discussed. The data in this thesis cover 31 provinces, autonomous regions and municipalities over six years from 1998 to 2003 in China. By panel data analysis, we find out that real income per capita and construction costs are major factors influencing the residential housing price in real estate market of China. Comparing the modeling results of three regions (Northern, Central, and Southern Regions in China), we discover that the major explanatory variables differ from one region to another. Even if the same explanatory factors are influencing residential housing prices in different regions, the explanatory effects still differ from each other.