Regional Differences In Analysis Of The Factors Affecting Housing Prices In China

The real estate market has already developed in our country more than ten years. In recent years, house prices keep rising. Although the government has conducted some policies, the effect is limited. The economic development of our country exists regional differences; therefore, the factors which influnce house prices will also have regional differences in their effect and influnce degree. In this context, the paper mainly discusses the regional diversity of the factors affecting house prices. This paper selected paneldatas of 30 provincial-level administrative region (excluding Hong Kong, Macao and Taiwan, Tibet)during 2005-2012, and divided them into three regions to analyze. We select 15 variables, they are:Per capita GDP, urban per capita disposable income, urban population, the M2 circulation, urban green space area, road cleaning area, number of high schools, the number of medical institutions, public library organization, registered urban unemployed population, number of urban residential investments, number of real estate development enterprises, real estate development enterprise operating profit, the primary grade highway mileage and the number of common colleges and universities to analyze regional differences in their effect and influnce degree on house prices. The mainly research methods of this paper are:annlyze static paneldatas by using fixed effects model; when take expectation into consideration, we use system GMM model; we also use the average of the BMA model method to solve the problem of variable selection.Though comparative analysis, we concluded that the BMA model is superior to other models and there is a obvious regional differences when variables affect house prices. Therefore, we recommend that housing policy should adjust to local conditions under the condition of management cost allows. In this way we will perfectly construct our real estate market.