Research On Influence Of Profit Distribution On Housing Prices

Rising housing prices are driven beyond affordability for average home buyers in China recently.This phenomenon leads to serious social problems.It is of great significance to analyze the reasons for the high housing prices and to take effective policy measures to control it.Profit distribution of commercial housing development is major factors lying behind skyrocketing property price.The price of commodity housing is influenced by the three important economic entities,the local government,the property developers and the financing institutions.Because the interests of the commodity housing development are limited,the change of the distribution pattern of the interests will inevitably lead to the fluctuation of the housing prices.Through theoretical and empirical research,this study analyzes the current situation of profit distribution as well as corresponding influence on property price,thus to provide theoretical basis for government's price control over real estate.This paper studies the impact of interest distribution on the price of commercial housing,which includes three parts: theoretical research,empirical research and policy recommendations.The theoretical research part first analyzes the influence of the interests of the local government,the developers and the financing institutions on the price of the commodity housing,and then analyzes the impact of the distribution pattern of the three parties on the price of the commodity housing.In the empirical research part,on the first place,quantitative study is adopted to profit distribution among local government,property developer and financing institutions.Furthermore,profit difference and reasons lying behind are studied.Secondly,ordinary least square model is built to analyze the influence of profit distribution on housing price.In addition,concerning possible spatial correlation in housing price,spatial models of aforementioned influence are also built.Distance and economy matrices are taken to check the results.And finally,discussions over profit distribution and its influence on housing price in eastern,central and western regions.Through theoretical research and empirical research,conclusions can be drawn that: For profit distribution,property developers play a more important role in profitdistribution than local government and fund raising institutions.However,government is of greater significance in controlling housing price.Moreover,different from overall,property developers are dominant in profit distribution in eastern region.Finally,this study has also put forward suggestions on government policies as well as credit concerning financing institutions.In order to solve the problem of government's land dependence,the government should bring the land related income into the unified jurisdiction of the central government and bring the land grant into a comprehensive audit to improve the transparency of the land income and expenditure.Government should increase efficiency of land supply and play a leading role in guiding housing price and real estate market.The financing institutions should strengthen the loan audit.Differentiated credit policy can be implemented to ensure housing to function as residences rather than for commercial purpose.