The Analysis On Factors Affecting The Price Of Chinese Real Estate

As one of the important engine of national economy, the contribution of real estate industry is very significant to the growth of economy. According to statistics, in 2009, the turnover of the new and second-hand housing can make a breakthrough of 6 trillion yuan, which is equivalent to one-fifth of the same GDP. The investment of real estate is expected to reach 3.6 billion yuan, accounting for 19% of the proportion of investment in fixed assets. In the increment investment in fixed assets, the contribution of real estate is more than 30 percent.Meanwhile, the prices of houses are rising rapidly. By mid-December, transaction prices of commodity housing of major cities are becoming higher. Rising prices have become the important problem that affect people's livelihood. "Kingdom of four" marks a new regulation of real estate.In order to find the reason for changes of the prices of real estate, this paper makes an analysis on the elements that influence the prices of real estate through the following ways:First, descriptive analysis is made on the development progress and development status of real estate. Development progress review can help us look at China's real estate development with long-term vision and understand the driving factors of all phases. The analysis of the current development status is helpful. On the one hand, through the comparison of the changing trend of real estate prices in other countries and that in our own country, it analyzes whether the growth rate of the real estate prices is too big. On the other hand, through the comparison of housing price-income ratio and our own countries, it analyses whether our prices are too high. Through the above analysis, we can see clearly the existing problems in real estate industry of our country, and then we can find the solution in view of the present situation.Second, from the aspects of urbanization, real estate cycle, economic development, this paper analyzes the development of real estate industry. Urbanization and high-speed economic development is the soil of rapid development of real estate industry. Real estate cycle can let us see the changes of the prices of real estate of a certain stage. Only recognize the development background of the real estate in China, can we better understand the change of the real estate price.Third, descriptive and empirical analysis should be made on the factors which influence the real estate prices. Many factors can influence the real estate prices, and many factors are difficult to quantify. Descriptive analysis should be made on the factors difficult to quantify, and the easily quantified factors can be analyzed with SPSS software. In this way, the important factors that influence the changes of real estate prices can be found.