The Research On The Factors Of China’s Real Estate Prices

With the rising status of the real estate industry in the national economy, the real estate prices have become the focus of attention, which led to a series of problems, such as social imbalance in the allocation of resources, industrial structure imbalance, buyers and other difficult economic and social problems. To curb rising property prices, the state issued a series of control measures, but ineffective. Exploring the roots of real estate prices, finding effective factors for local conditions to adopt policies to curb real estate prices, has important practical value.Articles scholars influencing factors of real estate prices, based on the present situation of China’s real estate market, real estate, respectively, in terms of their economic, social and demographic factors, such as how to affect real estate prices in the theoretical analysis. Use quarterly data from 2002 to 2014 between China’s real estate market-related, the use of gray correlation analysis to quantitatively investigate the relative importance of the impact of the gross domestic product, the price of land, completion commercial residential area, the money supply, urban per capita disposable income, working population, new loans, real estate investment, consumption of urban residents per capita living expenses on real estate prices, the study found that the new loans, the impact of land prices, money supply, GDP, per capita disposable income of real estate prices was greater than the amount of investment in real estate development, the impact of per capita consumer spending, labor population and completion of an area of real estate; Increasing of income and improving of the living standards were not the main cause of rising real estate prices, real estate prices are mainly affected by new loans, land prices, GDP and money supply and so on, the effect of consumer demand for real estate prices was weak. To further study the impact of real estate price mechanism, select the higher correlation of new loans, land prices, money supply, GDP, per capita disposable income and real estate investment to build the vector auto-regression model—VAR to study the dynamic effects of these factors on real estate prices. Empirical studies had found that there is a long-run equilibrium relationship of these variables and real estate prices. The impact of GDP, land prices, money supply, new loans to real estate current price was positive. The impact of per capital disposable income of urban residents and real estate investment in real estate prices of the current period was the reverse, producing a negative effect on the real estate market, does not produce effective demand. Impulse response function showed that in the long term, the changes in these factors have a positive response on real estate prices.Based on the results of theoretical and empirical analysis, the article put forward policy suggestions from four aspects of economic restructuring, management of the land price, real estate finance and monetary policy respectively. As the real estate industry involved in many aspects, with objective conditions, many factors could not be effectively quantified, unable to obtain data of related factors. In addition, speculative demand, a more important factor, promoted real estate prices had not studied.