Theoretical And Empirical Analysis On The Price Factors Theory

In recent years, real estate price is increasing rapidly, which exerts a bad influence on people’s life quality on one hand, and leaves potential troubles for economy development. The Chinese government has taken some measures to regulate the real estate market and curbed the increasing of the price in some way, but it makes not much difference. In order to make it clear why the real estate price is so high, the most important thing is to classify the influential factors, especially the strong ones and the weak ones, and then suggestions can be provided. Based on previous studies, this essay probes into the prices of real estate in Tianjin. By employing relative theories, it makes a systematic analysis about the factors that effect real estate price, including supply and demand, economy, society, policies and so on. After sorting the changes in real estate prices of Tianjin in recent years and taking its local situation into consideration, the essay attempts to find the specific factors that influence the price, especially its property right of commodity apartment, land system, its appeal and educational equality. An empirical analysis is also made, by exploring the statistics from2005to2012in terms of permanent residents, the sizes of newly-built commodity apartments and the sold-out apartments, urban disposable incomes, regional GDP. With the help of regression analysis method, the essay explores the major factors that influence real estate price, and provides suggestions for governmental regulation. First, in the short run, complete the transition from administrative regulation measures such as limited house purchasing and housing loan, to market regulation. And curb the price of maintaining houses by levying the personal securities exchange income tax, house property tax and inheritance tax. In the middle and long term, get rid of power influence and non-reasonable speculation; meanwhile, take the advantage of improving educational fairness and new form of urbanization to seek for new housing model and solve housing problems.