| With China’s rapid economic development, the deepening of the reform of thehousing system, the acceleration of the urbanization process and the continuous expansionof the demand for housing in the recent years, real estate development in China hasentered an unprecedented period of prosperity. The real estate industry graduallydeveloped into the leading industry of China’s national economy, fluctuations in the realestate market has a significant impact on the macro-economic development. Therefore, theresearch of the impact of volatility of the real estate market on development ofmacroeconomic has important theoretical and practical significance. Firstly this paperconducted a qualitative analysis on the impact of the fluctuations of the real estate market(fluctuations in real estate prices and fluctuations in the real estate investment) onmacroeconomic developments. Then empirical analysis of the impact of the real estatemarket fluctuations on macro-economic development was carried on, includingfluctuations in real estate prices on aggregate consumption, the impact of fluctuations inthe real estate investment on economic growth and fluctuations in real estate prices impacton inflation three aspects. Through empirical analysis, we found that the year-on-yeargrowth of real estate prices has a significant role in promoting aggregate consumption inthe short term; real estate investment has a significant role in boosting GDP growth in theshort term; the year-on-year change in prices, industrial production and interest rates couldsignificantly affect the CPI year-on-year change. Finally, some targeted policyrecommendations based on the empirical analysis were offered. |
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