The Research To The Influential Factors Of Real Estate Prices

During several years’development, the real estate industry, which goes towards the direction of marketing reform, has become the pillar industry in China. The real estate industry is now playing an important part on stimulating China’s macroeconomic development. At the same time, it is one of the most important factors which determine thousands of people’s welfare, Therefore the government, the companies and the civilians all wish the real estate industry healthy development. However, in recent years, many large and middle-size cities in China witness a dramatic rise up of the real estate price which exceeds greatly the people’s wage income growth rate in the same time, and the real estate price keeps rising despite the corresponding policies of stabilizing price come out one after another. Now the rising price phenomenon has been the focus of the news, government and civil people.Under this condition, it is very important to know the reason why the real estate price keeps rising, this is also what the thesis talks about. Firstly, the thesis talks about the characteristics of the real estate market, including four parts:the characteristics of the real estate product, the characteristics of the real estate demanders, the characteristics of the real estate suppliers and the characteristics of the governmental regulation. Then the thesis talks about the reasons that may relate to the rising price, applying the classic price-determinism theory which justifies the mutual power of demand and supply. These reasons include the factors affecting the demand, the factors affecting the supply and the factors affecting both. Then the thesis selects the most important factors from looking at the real estate market in a microeconomic prospective. Then the thesis sets up an econometric regression model with the factors as the explanatory variables and the real estate price as the explainable variable. To make the model more accurate and meaningful, the thesis uses the panel data coming from the relative data about the35large and middle-size cities in China from the year2005-2009. Then the thesis makes some comments about the regression result and sums up the characteristics of these factors in the current Chinese situation. At last, after talking about the recent real estate policies and their effects on the real estate market, the thesis adds more policy suggestions with reviewing the regression results.