The Research Of The Relationship Between China’s Urban Housing Price And Land Price

Since the reform of the housing system at1998,the era of welfare housing has been over, and our country has gone into the stage of freely purchasing house to achieve commercialization. Our residents are able to freely choose the houses we need. However, with China’s sustained economic development and people’s improving living standards, housing prices and land prices also continued to rise Especially since the U.S. subprime mortgage crisis in2008, our country vigorously developed the real estate industry in order to stimulate economic growth, resulting in the rapid growth rates of housing prices and land prices,"buy a house difficult" has nowadays become a major issue which affects every people’s livelihood. In recent years our country has issued a series of policy which attempts to hold back housing prices with little success, so we need to analyze the relationship between housing price and land price and research whether housing price affect land price or land prices affect housing price, whether they are affected by other factors. It has important theoretical and practical significance for the development of a healthy and active real estate to clarify the relationship between housing price, land price and their factors.Firstly, we make a literature review to subtotal the foreign and domestic experts and scholars researches. Drawing on the basis of results of previous studies, we selected the land acquisition area, the area of completion housing, real estate amount of development and investment, the average wage of workers, Per capita GDP in addition to housing price and land price. We use them to build the model.In the empirical phase, the paper firstly selects the data of the national housing and land prices in the first quarter of2004to the fourth quarter of2011and uses Granger causality test to study the relationship between the two vectors. We know that there is significant correlation between housing price and land price in the short term. And the impact of housing price on land price is greater than the impact of land price on housing price. In the long term, housing price still has a significant impact on land price, but the land price has no significant impact on housing price. Then we select the annual data of above seven variables of35cities from2002to2011years of annual data analysis. We find that there is significant correlation between housing prices and land price, and the stimulating effect of housing price on land price to be significantly stronger than the stimulus of land price on the housing price. From this three-phase comparison of the eastern, central and western part of China, prices of land play the leading role of stimulation of housing prices in eastern part, followed by the western, central worst. By contrast, in the western part, land price has the most significant stimulating effect on the price of houses, followed by central, eastern worst. While many factors influent the eastern price of houses, only one of the factors affects the land price. In the western cities, land price is the only factor which affects housing price. And the influence factors of land price are only housing prices and real estate amount of development and investment.This paper concludes the main measures with stable real estate prices which are improving the real estate market competition mechanism and limiting the over-exploitation of the eastern region. To improve the real estate market competition mechanism, we need to reduce barriers to entry of the real estate firms and improve market transparency. We also need to perfect the land "Tender-Auction-Listing" system, and develop the second-hand housing market, and enhance relevant laws and regulations. Restrictions on the overexploitation of the eastern cities need to develop inexpensive housing and affordable housing, and adjust the housing supply structure, and improve the housing rental market, and change the traditional concept behind.