An Analysis Of The Impact Of The Ways Of Land Selling On The Price Of Real Estate

From the method of econometrics, this paper examines the interaction between land price and real estate price on the base of my reading a lot of related files , the theories of real estate economics, the principles of appraising the property of land and house. The paper carries out a Causality Tests on land price and real estate price, which based on Granger causality analysis. From the test we can draw a conclusion that real estate price controls land price but land price can't controls real estate price. Meanwhile the paper analyses the relationship between the implementing of land selling by inviting public bidding, auction,hanging out shingle and the rising of land price. Through the analysis we can know that the ways of inviting public bidding, auction and hanging out shingle can not make land price rising and land price rising also can not make the real estate rising, which opposes the point of view that the ways of inviting public bidding, auction and hanging out shingle cause land price rising and thereby cause real estate price rising. This paper also discusses the impact of inviting public bidding, auction and hanging out shingle on the market of real estate and some questions that should be paid attention to through the implementing of inviting public bidding, auction and hanging out shingle. The paper finds out the reasons of causing real estate price rising and gives some advice about how to control real estate price. In market economy the price of real estate is controlled by value rule and real estate's supply and demand. The fundamental reason of real estate price's rising is the flexible changes of real estate's supply and demand caused by the development of economy.