Research On The Relationship Between Land Price And Housing Price In Hohhot

In recent years, real estate price continued to rise rapidly which arousedwidespread concern in the real estate industry. Land price and housing priceare two important indicators that measure the health status of the real estatemarket, whose relationship has become the focus of the governmentdepartments and scholars. Some scholars believe that the rise in land pricewith relation to the land supply of China leads to the rise in housing price. Incontrast, others believe that the rise in housing price leads to the rise in landprice. The developers, government departments, consumers and manyscholars have different views on the relationship between land price andhousing price.Depth study on the relationship between land price and housing pricehas a great significance of the analysis of the real estate market’s operationand the promotion of the orderly and healthy development of the real estateindustry. The relationship between land price and housing price is verycomplex which is not the same in different regions. Considering the largeregional differences of the development of China’s real estate market, thisarticle selects Hohhot as the object of study and makes use of Regressiontest, comparative analysis and Granger causality test to explore therelationship between land price and housing price in Hohhot.Firstly, on the basis of the theory of the real estate price, this articleanalyzes the connotation, characteristics, composition and influential factorsof land price and housing price. Then, according to Hohhot’s data of landprice and housing price from2003to2010, this article adopts methods ofdynamic and quantitative analysis to analyze Hohhot’s trend of land priceand housing price and those reasons for their change deeply. We concludethat the level of land price in Hohhot stably rises year by year and thegrowing rate of commercial land price is faster than that of residential landprice; the overall level of land price in Hohhot is broadly same as the average level of the Northwest, but which is lower than the national averagelevel; the trend of housing price in Hohhot is upwards and the growing rateof commercial housing price is broadly consistent with that of residentialhousing price; the overall level of housing price in Hohhot is lower than thenational average level, however its growing rate is higher than the nationalaverage growth.Moreover, this article analyzes the dynamic trend and spatialcharacteristics of the proportion of land price in housing price in Hohhot,and we know that Hohhot’s commercial proportion of land price in housingprice is higher than the residential, but both of them show a downward trend.Comparing with the national proportion of land price in housing price, wefind that Hohhot’s proportion of land price in housing price is in the lowerlevel. Then this article adopts econometric analysis methods of Regressionanalysis, Stationary and Cointegration test and Granger causality test toresearch on the correlation and causal relationship between land price andhousing price in Hohhot, and we conclude that the correlation between landprice and housing price in Hohhot is strong. In the short term, Hohhot’schanges in housing price make a significant impact on land price, butchanges in land price make a relatively weak impact on housing price; froma long-term perspective, there’s no causal relationship between land priceand housing price in Hohhot. Finally, according to the research results, thearticle puts forward the regulation of Hohhot’s real estate price.