Research On The Impact Between House Price And Land Price Of China

Since China’s housing supply reform and land transfer reform, residential land prices and housing prices maintain rapid growth for many years, the relationship between house prices and land prices became a common hot topic of government, industry and academia.Is land prices decided housing prices or housing prices decided land prices? This paper made a comprehensive theoretical analysis of the formation mechanism of China’s housing prices and land prices, and based on annual data of China from2003to2010,32cities, by constructing simultaneous equations model with three-stage least squares method (3SLS) to make an empirical test of the relationship between housing prices and land prices. The results were as follows:1, All the first-tier or second-tier cities, the impact of current housing prices and land prices by their respective early prices and external factors far outweigh their interaction.2, the relationship of housing prices and land prices in second-tier cities is stronger than the first-tier cities, but there is a very different role direction.The main innovations:First, in terms of theoretical analysis, this paper first establish a general equilibrium model, then to enrich the theoretical model by continually adding the impact factor.Second, we select eight impact variables as exogenous variables to build housing prices and land prices simultaneous equations model, the variable data collected annual data of32major cities across the country from2003to2010.Third, the empirical part of32major cities across the country is divided into first tier and second tier two groups, and we use three-stage least squares (3SLS) to make an inspection of the two groups of citie and then make a comparison.