An Empirical Analysis Of The Factors Affecting Changzhou Real Estate Prices

Since the housing reform, the real estate industry has experienced rapid development and gradually became a pillar industry for China's economy. Although it played an important role in the national economy, there were also many problems emerging during the development. In some areas, the increase of the housing price was too high and the extent of increase was higher than the growth of the overall economy by a big margin, exhibiting the irrational parts of real estate development. While in some other areas, due to excessive investment in housing market, there were many overstocked residential apartments and the vacancy rate remained high. Considering the significant impact of housing prices on both people's livelihood and social stability, the research on impact factors of housing price was practically important for different stakeholders, such as economy policy makers, ordinary consumers, financial institutions providing housing mortgage loans and real estate developers.Based on the housing price theory, the impact factors of the housing prices in Changzhou city were analyzed from the perspective of theoretical and empirical study. On the basis of summary research on the housing price impact factors in domestic and international markets, the housing price mechanism and relevant models were analyzed using qualitative analysis in terms of demand factors, supply factors, financial policy factors and others. In addition,7 impact factors were chosen from the panel data of Changzhou (urban area) city, Liyang city and Jintan city to be analyzed quantitatively using multi linear regression analysis. The 7 analyzed factors were annual Changzhou GDP, the size of population, average salary, housing sales areas, investment in real estate markets, completed residential areas, loan balance of financial institutions and last year's housing price. The results indicated that last year's housing price affected the housing price most significantly. The conclusion was made base on the qualitative and quantitative analysis. Several counter-measures were recommended, including attracting migrants to settle in Changzhou, improving the mode of land supply, speeding up the construction of affordable housing system and the implementation of tax reform.