Correlation Analysis Of The Cost And Price Of Real Estate

In China, the real estate industry is very important, being closelylinked with China’s market economy but also closely related to the livesof ordinary people. Real estate prices have soared in recent years despiteincreased efforts by countries to better control it so that real estate pricesare kept within normal levels and healthy development of the real estateindustry is possible. However, due to several factors, state policies thathave sought to control the real estate industry have not led to the desiredresults and house prices have continued to rise, not fall, which has led togrowing public concern.At present, there is a general concern about the degree to which realestate prices deviate from real estate costs yet opinions over this issuediffer greatly and this disagreement has led to much debate. One mustunderstand this situation by first directing one’s attention to internalfactors, analyzing the structure and the workings of the real estateindustry; project development costs, and the costs and prices of real estateare some factors that must be investigated. We must pinpoint the maincause for the rise in housing prices and use this understanding to serve asthe basis for government decision-making, which would foster healthydevelopment within the real estate market. Current theories about thecosts of real estate projects will lay the foundation for future research andtheoretical investigation. Also, the structure and workings of the real estate industry must be analyzed; we must study matters related to land,know the correspondence between construction costs and housing prices,and use the data model to verify the prices of real estate, land andbuilding materials while understanding the causal relationship amongthese factors. Upon examining the housing prices and analyzing thedisconnect between real estate costs and real estate pricing, it is clear thatreal estate prices are rising yet this rise cannot be attributed to risingconstruction costs. We must therefore identify the main factors that affectreal estate prices and the use of induction summary of the law which listsa series of questions which are then summed up in the reason.This paper uses the method of combining normative analysis andempirical analysis to summarize existing research, interpretations,summaries to form conclusions. Departing from a purely accounting pointof view, a qualitative and quantitative analysis has been used as well ascase studies to explain how the results of theoretical studies can be usedin accounting practice. National macro-control is also referenced.