Research On Irrational Factors Of Residential Market In China

Real estate of a scarce resource is the important factor of production and basic living materials. The development of the real estate market is very important to people's livelihood. The Du Fu's" If only there could be millions of houses to abrit those who suffer in the coldness... how happy they would be! " can become famous and spread through the ages, because it is the voice of the toiling masses. The" home ownership" in China is one part of the superiority of socialism. The real estate development, from ancient times to the present, is people's domestic affairs. Since 1998, Chinese real estate market housing system reform has achieved rapid development, and become an important industry in the national economy, and even become a pillar industry of national economy. Undoubtedly, the rapid development of the real estate market vigorously promoted Chinese economic growth and enhances the GDP, but whether the development of the real estate industry continues its most essential function-people's basic subsistence? Real estate development is synchronized in people's basic needs? Whether the current boom of the real estate market is rational?With the rapid development of the real estate market, the real estate properties also in change. Real estate asset property and investment property are more and more obvious; the real estate industry is gradually becoming the most important component without the financial sector. For study of virtual assets, we need behavioral finance theory. In the second chapter, I introduce the development of behavioral finance and scholars of the domestic and foreign how introduce the behavioral finance into the real estate research, and also Introduction and comments on the theory of virtual economy more or less.In the third chapter, I use the combination methods of theoretical analysis and empirical analysis study on Chinese real estate market. I demonstrated that Chinese real estate market is non-rational boom market. Through our country real estate investment growth rate and other social fixed asset investment growth rate difference. housing supply structure unreasonable, house prices and residents'ability to pay comparison. Use the perspective of empirical stock -- flow model, I established the prices model. With 1998--2009 relevant market data, I researched on Chinese housing price's relationship with residents' disposable income. the cost of real estate development and A period of house price, and draws the related conclusion:Chinese current real estate market prosperity is irrational, at least the rational utility is not obvious.Since Chinese real estate market is irrational, and how the irrational factors impact? e What kind of irrational behavior do various market participants have? This fourth chapter is from the real estate market participants (those in need, the real estate company) started to analysis. I analyzed their behavior in different market factors Used the theoretical and empirical to analysis the real estate companies' behavior on land acquisition, product development, corporate finance and other aspects, I think it is non-rational behavior, and they have significant investment impulses, but lack of appropriate rational risk perception. Real estate market demands are more susceptible by factors around them. In the decision-making, they easily to show overconfidence, overreaction, price anchor, herding and other non-rational behavior.In China as the resource contractor, the government's influence on real estate market is the decisive role. The government behavior is the main external shocks in real estate market. As the local government and the central government have different interest points, they have a game behavior, and presents the supervision that the central government want to regulation and the local government want to illegal. The local government is "economic person" when they management real estate market. As the financial system problems and self-interest, local government keeps the limited rationality of cooperation with real estate development enterprises.As analyzed the real estate market main body's irrational behavior deeply, we should search for the corresponding countermeasure. The sixth chapter of this article is from the real estate demand, real estate development enterprises and government. according to their respective characteristics, market position and gives the corresponding countermeasures, in order to promote the real estate market rationality of some help.The innovation points of this paper is using the new characteristic of fictitious asset character of real estate--virtual assets, and comminute the behavioral finance theory and the real estate market participant's behavior. and use the real estate market related statistical data analyzes each market participant in all aspects of irrationality.I hope that through this article elaboration, the people study on the real estate market more to from the perspective of behavioral finance market to study the market behavior of the participating subjects. Behavior of market players can not be completely rational; the irrational factors will have a significant impact on the real estate market for a long time. The future of the real estate market research, behavioral economics and psychology will occupy an increasingly important position; the introduction of psychological data will probably become a new direction in researching the real estate.