The Regional Difference Of Interest Rate Policy On Housing Price Adjustment In China

Since the real estate market entered the era of commercialization and monetization in 1998,the real estate industry has not only affected people's living and working in peace and contentment,but also played a power-ful role in promoting the development of upstream and downstream industries.After 20 years of vigorous development,the real estate industry has gradually become one of the core industries that promote the economic growth of our country.According to statistics,the real estate industry affects the development of more than 60 industries in China indirectly or directly,so the instability of the real estate industry will bring great influence to the national economy.Since the real estate reform,the country's housing prices rose rapidly,especially in Beijing,Shanghai and other first-tier cities.Excessive price increases not only make it more difficult for people to buy houses,but also indirectly raise prices by increasing the rents of shops caused by the rise in house prices.According to statistics,rental costs account for 30%of the cost of most businesses.The people's Bank of China has repeatedly used monetary policy to stabilize house prices,and the government has issued a number of policies to limit purchases and adjust the down payment ratio to ensure the healthy development of the real estate market.However,the serious regional differences in the real estate market increase the difficulty of housing price control.Property prices in first-tier cities such as Beijing,Shanghai and Shenzhen,where the proportion of investment demand is too high,are rising too fast,while the low marketization of real estate in other regions has led to overstocking of real estate.This paper first analyzes the influence of the change of interest rate on the supply and demand of real estate,and judges the influence of the change of interest rate on the housing price according to the result of qualitative comparison of the demand effect and supply effect caused by the change of interest rate.Then,by reviewing the changes of interest rate policy and its effect on housing price,the paper analyzes the regional difference effect of interest rate policy on housing price.Finally,according to the classification method of 35 cities in China by the Academy of Social Sciences,35 large and medium-sized cities are divided into five categories.The panel vector autoregressive model is established for the five cities respectively,and the regional effect difference of interest rate policy regulating house prices is quantitatively studied.The results show that the breadth and depth of interest rate policy control are different in different regions.