Research Of Interaction Between Real Estate Priunder Urban Economy Under System

In recent years, the real estate price of many cities haved rised continuely in China, localgovernments have put forward regulatory policies but had little effect. The important reason isthat real estate price is closely related to urban economy, and the governments are concernedthat urban economy will be influenced if the real estate price not controlled. At present, there isfew research on the relationship between real estate price and urban economy and the researchis rare based on the urban system. As a result, it’s worthy to study the relationship between realestate price and urban economy under urban system.In the beginning, this thesis reviews the classic theories of real estate price and urbaneconomy, which lays a theoretical basis for the forthcoming research. Secondly, a theoreticalframework concerning the interaction between real estate price and urban economy isestablished, based on the way they influence each other. Additionally, under the urban system,another theoretical framework is formed which is about the interrelation between economy ofcore cities and real estate price, as well as between economy of secondary cities and real estateprice. In the end, three layers of relationship are testified. By virtue of Granger, the relation ofreal estate price and urban economy in the nine cities of Perl River Delta region; the linkage ofurban real estate price is proven by means of VAR model and by taking Shenzhen, Dongguan,and Huizhou as examples; the interrelation between economy of core cities and real estate priceof secondary cities is verified, using Guangzhou&Zhongshan and Guangzhou&Zhaoqing asexamples.The main conclusions are as follows: There is interactive relationship between real estateprice and urban economy. in urban system, it’s a two-way interactive relationship between coercities and subcoer cities, while one-way link between sub cities; Under urban system, the realestate price has linkage relationship,and the force of real estate price of coer cities on real estateprice of sub cities is stronger than their counterforce at current period,while it’s contrary at aspecified date;There is interactive relationship between real estate price of core cities and urbaneconomy of sub cities, and the force of core cities economy on sub cities real estate price isstronger than their counterforce.