A Study On The Change Of Interest And Regional Housing Markets

In the steady process of Chinese market-oriented interest rate progress, although thecentral bank eases the interest regulation, interest rates are still under the control of thecentral bank. Interest rate market is not completely liberalization. As an important means ofadjusting the real estate market, Whether disequilibrium effects appeared in differentregional house markets in the same interest rates become a controversial issue in academia.China implements unified national interest rate policy for a long time. According to thedifferences of regional economic development and the historical accumulation in differentareas, the regional real estate markets are different. The effects of change of interest rate onregional real estate markets are not the same. Since the housing reform, the high-speeddevelopment of real estate industry appeared and even appeared the overheating situation,the healthy development of national economy has been threatened. The adjustment of thereal estate market has become one of the important problems. Although the governmentpublished lots of monetary policies to make the real estate market steady, the control effect isnot obvious. Can interest rates affect real estate market? Do the effects of different type ofrates on real estate market are various. Based on the real estate finance theory, this thesisanalyses the effect of different interest rates on different areas’ real estate markets andexplores the different reflections in regional real estate market.Firstly, this thesis analyses the conduction mechanism of the interest rate on the realestate market. Secondly, the thesis explores the trend of change of interest rate and thesituation of real estate development. On this foundation, this thesis analyses the effect ofdifferent interest rate on regional real estate markets through using panel data model andvector regression model. The conclusions includes that interest rate policy has influence onthe real estate market regulation, interest rates have different sensitivities on different cities.Therefore, the liberalization of interest rate reform in different areas is imperative. Finally,this thesis proposed policy suggestions to improve the effect of interest rate on real estatemarket, argued that monetary authorities should pay attention to interest rate markitizationreform, implement stable interest rate policies to regulate the real estate market, interest ratepolicy should be used with other kinds of monetary policies in order to achieve better coordination effect of real estate market. Different interest rate policy should be used indifferent areas. According to the specific conditions in different areas, monetary authoritiesshould published various interest rate policies and improve the foresight of interest ratepolicies.