A Study Of The Impact Of Land Banking System On The Price Of Real Estate In Wuhan City

Through understanding the principle of land price and real estate price formation, the paper analyze the effect of land banking system over real estate market on the basis of reading a large number of relative papers home and abroad. First the thesis makes an analysis on analysis on the effect over real estate price rising in Wuhan by land banking system in Wuhan. Based on that, a conclusion is reached that the ways of inviting public bidding, auction and hanging out shingle brings land price rising. But, the ways of inviting public bidding, auction and hanging out shingle is not supposed to cause land price rise inherently. At the same time, this thesis denies that land price rising is caused by shortage of land supply. The thesis analyze the effect on real estate market in Wuhan City caused by the implementation of land banking system and analyze the effect on real estate price brought by the changes in the real estate market. On the basis of plenty of date, the paper uses Causality Tests (Granger Causality test) in econometrics to find out interrelationship and causality relation between real estate price and land price. And a conclusion is drawn that real estate price decides land price in Wuhan, however land price doesn't decide real estate price.Besides the problems above ,current land banking system will bring many problems such as reduction in the number of real estate development enterprises, more land reserve made by enterprises, and massive land redevelopment in Wuhan. As a result, the real estate price caused to rise due to these problems. Based on the analysis, the paper draws a conclusion that, after the implementation of land banking system, rising of land price is not the cause of real estate price rising. The paper comprehensively analyzes the main causes for rising price of real estate controlling real estate price properly. Finally the thesis draws such a conclusion that the imbalance of supply and demand in real estate market, a rise in construction cost and people's purchasing power, the investment and speculation in real estate market are the most important reasons for real estate price rising in Wuhan City. Therefore, the thesis puts forward the corresponding measures, such as adjustment of land and housing supply structure, reducing the scale of city relocation, controlling the enterprise land reserve, strengthening government social security function, enhancing the transparency and striking the speculation in real estate market.