Domestic Price Formation Mechanism Of Self-expanding Mechanism

Since the reform and opening-up of China, with the fast and steady development of the economy of our country, residents have improved a lot in income. Clothing, food, lodging and transportation are residents' basic demand, with the increase of residents' income. They have higher and higher requirements for housing. Under the guidance of government policy, the real estate of our country has got considerable development, has occupied the important position in national economy, and has become the pillar industry of economic development of our country gradually.Over the past 20 years, the housing supply system of our country has undergone a lot of reforms, changing from the planed supply to market supply gradually. With the perfection of the laws and regulations, the establishment of the market system, the market system of real estate of our country is improved constantly. But obviously there are still a lot of weak points such as fast rise of the price of the house, especially the real estate market is overheated regionally , which brings a very big hidden danger to sound development of the real estate market of our country.The core of market economy is supply and demand determine prices together. But as for this special goods of house, its price is affected by multiple factors. Except the influence of basic factors, such as population, income especially family's disposable income, etc., still influenced by state policies, bank rate, loan even stock market. On the specific market, the historic factor, structure system of the market, property right structure and its selling way can't be ignored either.On the basis of documents research and China's peculiar real estate market survey, this paper attempts to find out the formation mechanism of house price of real estate market of our country. Among the three-division market system of real estate, through the game analysis of the regulations for bid, auction, list and selling way of land in land -selling market of our country., we can draw the recessive self-expansion mechanism of land price. Meanwhile, through the analysis of some quantitative relations among the land -selling market, real estate increment market, stock market of real estate ,we can set up four-quadrant models of real estate increment market and real estate stock market, land selling market and real estate increment of market.Utilizing four-quadrant models, on the basis of analysis of the conduction mechanism of stock market of the real estate, increment market of the real estate and the land market, we further analyses the pushing function of the conduction mechanism of the market to the price rising of the house under certain condition. The ones that drew the house price of real estate market of our country are from the inflation mechanism. Finally, utilizing the data of regional market--Shanghai real estate market, we conduct quantitative demenstration analysis, draw the conclusion, and then analyse on the premise of changes of some market parameters, put forward some rationalized suggestions.