The Research Of The Relationship Between China’s Real Estate Development And The Fluctuation Of The Macroeconomy

The real estate industry is the basic,pilot and pillar industry.It has a closerelationship with the Fluctuation of the Macroeconomy, especially Real Estate Price.This article will discuss the relationship between China’s real estate development andthe Fluctuation of the Macroeconomy from the perspective of prices.First,This paper is based on the panel data of our country using dynamic factoranalysis to comprehensive evaluate the level of real estate development. This articleuses panel data for2001-2005and2006-2010, respectively in31provincesautonomous regions,comprehensive evaluation of the real estate developmentsituation in the “Tenth Five-Year Plan” and the “Eleventh Five-Year Plan”.The resultsindicate that in the two five-year plan,real estate development in all regions of thestate generally performed as normal, the industry development trend is good. Someeconomically developed regions and the relatively high ranking of integrated coastalprovinces, there is a certain regional characteristics in the development of real estate.Next this article using the PVAR model to analyse the relationship betweenChina’s real estate price and the fluctuation of the macroeconomy based on the paneldata of our country’s31provinces from1999to2009. The results indicate that thetwo-way interaction exists between them, both driving and restraining each othermutual. Real estate price’s fluctuation is impacted by the macroeconomy moresignificant. Macroeconomy support the real estate price, and Macroeconomicperformance play a decisive role in the fluctuation of real estate price.As theimbalance of the development in Chinese different areas is significantly,the real estatemarkets of National and local area are not the same.The Real estate industry isaffected by The level of regional economic in a certain extent.In a word, There is a close relationship between the real estate price and thefluctuation of macroeconomy in china. At present our country real estate market stillremains to be perfected further,to form the coordinated relathionship between the realestate and Macroeconomy.