| Increase of real estate prices has been a hot topic in recent years which caused great attentions from the whole society. The focus has been the continuity of real estate prices increasing and dangers of too fast price increasing. This article is based on the economic background,selecting the real estate industry and the economy to meet the point that is real estate prices as the research object, The thesis starts with principle of how real estate prices formed by demand and supply, research and analysis of the factors that affect price changes. Also it summarizes special features of real estate prices increasing in China and methods in controlling real estate prices increase.First of all,this article researches demands and supplies curve of the real estate market. The results show a tilt of the curve of the lower right corner. The performance of the supply curve by the reasoning for a tilt at the top right of the curve. The market price of property is decided by the point where supply curve and demand curve meet. Supplier of property is developer while buyer of property include both consumer and investor. Investor shows totally different buying tendency with consumer. The higher real estate price is maintained and the quicklier the real estate price is increasing, the more actively investor works. Once the increasing price of property tends to be stable, investor will look for other investment chances rather than property. It is a new phenomenon that there are a lot of property investors now in China property market. In order to study influences of property demand curve including investor's, the thesis analyze four different property price equilibriums and their related property price tendency, These are:1)short-run equilibrium initiated by consumer; 2)long-run equilibrium initiated by consumer; 3) short-run equilibrium initiated by investor; 4) long-run equilibrium initiated by investor. In last part of the chapter, the writer quotes a comprehensive statistic figures of property economic development from 1998 to 2009 in China to verify the long-run property price tendency. Secondly, it analysis the factors which are affecting the changes from selecting the demand and supply. It includes both the long-run factors and the unique factors which occur during the present innovation of system organization in China.The impact of demand factors: level of per capita income and other factors. The same factors which affect the supply of major component from the price analysis,the cost of land,part of the development costs etc. The above two factors caused the change occurred around curve shift,which reflected the fluctuating real estate prices. The thesis also clarifies how these factors influence the changes of property price. Finally, The thesis has quoted statistic figures over from National Statistic Bureau in the analysis of present property price changing. Four different kind of methods to control the increasing property price are proposed in the end of the thesis which are: 1)Cost controlling and Increasing affordable housing; 2)Satisfy house demand and restrain speculation;3)Strengthen market supervision and management;4)Publish Real-estate-price Index Futures; The result of the thesis is useful both theoretically and practically in analysis of present situation of property market. By analyzing the price deciding and influencing factors of property price, we can realize the inevitability of property price increasing and possibility of big price fluctuation caused by investors. We need to have a proper attitude towards to increase of property price and have practical methods to control the fast-increasing price. The analysis of the thesis is also applicable to start and stimulate an unpopular property market. |
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