The Research On Regional Differences Of Economic Openness’s Effect On China’s Real Estate Prices

Opening up is the only way for the country’s prosperity. Recalling the“Twelve-Five” period, our country has always been persisting in opening up,optimizing the opening-up strategy constantly and improving the management mechanism. With pilot free trade zone strategy been quicken, the establishment of the Asian infrastructure investment bank and the start of “one belt, one road” strategy, our country is building a new system of the open economy actively. The scale of foreign investment in actual use reached the world’s first for the first time in 2014. To be the center power of the global economic through the open economy is not only the trend of The Times, but also the power of China’s economic growth. In this context, all aspects of China’s economy will be closely linked to "open". The deepening of the openness has brought new opportunities to the development of China’s real estate industry to some extent, while brought some risks and challenges as well. The regional real estate markets has presented a scene of prosperity ever since housing system reform in 1998, with property prices rising. Although some macro-control policies were pushed in recent years, the effect is very little and parts of house prices remain high. So it is necessary for us to study changes on the real estate prices from the perspective of economic opening.In an open economy theory, the Balassa-Samuelson theory is one of the few existing theories which combine open economy with real estate prices. It holds that in rapid growth stage, the tradable sectors’ faster productivity growth increased the relative cost of non-tradable department, thereby improved the relative prices of non-tradeable goods. Based on the theory of B-S, this paper mainly does research on the relation between real estate price changes and economic openness. It also analyzes the regional different real estate prices and the economic openness’ s influence on housing prices among the eastern, central and western, which provides the references about adjusting measures to local conditions in regulating the real estate market for the government.The empirical results show that in terms of the national overall housing prices, economic openness has a significant effect on real estate price. Every1% move forward the economic openness, real estate prices will rise 0.038%. While regional empirical results show that compared with the central and western, economic openness has significantly positive effects on housing prices in the east east. It may due to its advantage in geographical environment, capital inflows and the introductionof talents and so on.