The Study On Relationship Of Urban Land Price And Housing Price In Our Country

Urban land price and housing price are the two main point of the real estate prices system. The coordinated relationship between them has a significant impact on the operation of the real estate industry and urban land use efficiency, so to study the relationship between urban land price and housing price has the important practical significance, and there are a large number of domestic and foreign scholars who are studying this problem. Taken the theory of land prices and the theory of supply and demand as the basic analytical framework, this paper research the relationship between the urban land price and housing price from a macro and micro perspective on urban land price and housing price, and does a empirical analysis using the VAR model of two variables and cross-section data model.This paper has five parts:Firstly it introduces the background and the significance of this topic, the relevant research literatures, and put forward the research ideas of this paper.Chapter 1 introduces the related Marxist theory of land price. Urban land price is a special price pattern, it has two parts: Firstly, when Land as a natural resource, the price is not the currency represent of the land value, but the price who pay to get the ownership and the using right. Secondly, the land price concludes the land assets price. The housing belongs to land assets, the real estate is a combination of housing and land, the true value of it is the value of land. Meanwhile, the essence of real estate price is urban land price, so the housing price should belong to the land price. Analysing on the constituted entities of land price, the price will continue to show an upward trend.Chapter two reviews the formation mechanism of the urban land prices and housing price and concludes: Urban land prices and housing prices interact. The interacted paths of two parts can be expressed as follows: On the one hand, the increasing demand for real estate impels the housing prices, the high price stimulate the further development of enthusiasm of the real estate developers, so the demand for land increases, the increase in the stock of land at the same time, also fueled the rise in land prices, such as, the increasing demand for real estateâ†'the high housing priceâ†'the increasing of investmentâ†'the increasing demand for the landâ†'the increasing price of land; On the other hand, demand for land increases, because of the great demand in the real estate market, property prices still expected on the high end. Developers now have the impulse to further development and will impute the extra costs to purchasers, this forms a impact on the housing price, such as the increasing demand for the landâ†'the expected high price of landâ†'the increasing of land priceâ†'the increasing of housing price. Eventually formed a vicious circle: house price risingâ†'land price risingâ†'house price rising.Chapter 3 is a part of empirical analysis. Firstly, doing the Granger's test of urban land price and housing price, the result is that the urban land price Granger Cause the housing price at a high significant level, but the housing price Granger Cause urban land price at a relative low significant level. Then, constructing the VAR modle with two variables of the urban land price and the housing price. The conclusion is that urban land price and housing price interact. At last, using the cross-section model with data of 35 cities does the regression analysis.Chapter 4 is the conclusions and policy recommendations:1. The urban land price movement analysed from the special price structure is the wave-like rise.2. The Current housing price decide the current land price, but on the other hand, the current land price is an important decision of the housing price after 2 or 3 years, the current housing price mainly impact by demand for house. The impact of the current land price on the current housing influenced by society expect and other psychological factors. The control of the land price does not achieve the purposes of control the housing price.The policy recommendations on this situation are:1. The urban land price is decided by the market, it should not be used as indicator of the government direct control.2. Repress the investment demand of the real estate.3. Regulate the financial support of the bank to the real estate.4. Control housing price, as the same time provide housing guarantee to low-income people.5. Carry out the consistent policy in order to make sure that the macro-control policy is implemented.