Research On Regional Difference Of Influence Of Interest Rate To Real Estate Price Of China

Since1999when the housing system had been reformed, the market operationsystem has formed gradually, while the scale and the speed of investment in realestate are increasing, with the real estate price rising. Real estate has graduallydeveloped into the pillar industry in China, which is related to the development ofmany industries. At the same time, it is not only the source of power supporting thesustainable growth of GDP, but also the important role for the construction of thewell-off society and the economic development. However, in the development processof real estate, high real estate prices are bad not only to the healthy and stabledevelopment of real estate industry, but also the sustainable development of nationaleconomy. As the major macro control policy of real estate market interest rate policyplays a vital role for the steady and health development of real estate market.Firstly, this paper reviews the relevant research results of the domestic andinternational scholars in view of the real estate prices’ influence made from themonetary policy. Then, it analyzes the theory on interest rate policy making themacroeconomic regulation to real estate market on the basis, and expounds thenecessity and the transmission mechanism on interest rate policy and the real estatemarket regulation. By the analysis of theory, this paper is based on real estate andrelated economic operation data. While it introduces the control process of interestrate policy to real estate market, divides real estate market into three regions whichare the east region, central region and west region, and makes the analysis of thepresent situation of real estate as well as the contrast. Then, for the influence ofinterest rate to regional real estate price, we establish an empirical model to makeregression analysis. The empirical results show that the effect of interest rate isdifferent with each region. For the east part, there is positive relationship of interestrates, and the conduction channel is clean. For the central part, the relationship withinterest rate is not significant, but to the per capita income is significant. For the westpart, the influence of per capita income is more significant, so is the interest rate.Finally, based on the empirical analysis of influence of interest rate policy to regionalreal estate prices, we give some constructive policy recommendations.