The Impact Of Urbanization Level On Real Estate Price In The Pearl River Delta

Urbanization,as one of the most important means to promoting the development of city,it plays more and more important role in the economic and social development of China from the reform and opening up.Throughout the process of urbanization in China,urbanization construction has played an important role in many aspects,such as economy,society,people's livelihood and so on.As one of the most important pillars of China's economic development,the real estate industry is inevitably be affected by it.At present,the level of urbanization in different regions of our country is quite different,and the mode of urbanization development in different regions is also different.Limited by their own economic conditions,the cities with lower level of urbanization,will be more active to pursuing the improvement of level.As for the cities where the urbanization construction started earlier with their own good economic foundations and the inclination of the national macro-policy,they should realize that the improvement of the quality of urbanization is the key to their future development.However,both the improvement of urbanization scale and quality will have an impact on the real estate market and the price of real estate.The impact of urbanization on the real estate market is indirect and multi-faceted.Specifically,in the process of urbanization,population migration,land expansion and the improvement of urban development quality can affect housing prices by affecting the supply and demand of the real estate market.As one of the three major urban agglomerations planned by the state,the Pearl River Delta region has a typical representative significance both in the process of urbanization construction and the process of real estate market development.Based on this,in this paper we chooses 9 cities in the Pearl River Delta as the research object,takes the urbanization construction as the starting point,and analyses the impact of urbanization on the development of real estate market from the perspective of supply and demand.Firstly,this paper combs the research literature on the relationship between urbanization,real estate market,real estate price and other factors,and collates the relevant concepts and economic theory,based on which we can find the entry point of this study.Furthermore,this paper briefly combs the whole process ofurbanization construction and the development of real estate market in China,and focuses on the process of urbanization development in the Pearl River Delta region since the reform and opening-up and the real estate market development process after the commercialization reform of housing market.Then,we analyse the differences among the selected cities to accurately grasp the development characteristics of the Pearl River Delta region.Next,based on the studies,this paper analyses the impact of urbanization on real estate market price from two aspects of theoretical mechanism and empirical test,and draws relevant conclusions.The conclusions are as follows: Firstly,there is a corresponding relationship between urbanization level and the development of real estate market in the Pearl River Delta region.In areas with high urbanization,such as Guangzhou,Shenzhen,Zhuhai and Foshan,the real estate market is relatively prosperous,but in Zhaoqing,where urbanization is slow,the real estate market is relatively backward.Secondly,in theory,the impact of urbanization on the real estate market is mainly reflected in two aspects,one is the expansion of population size,the other is the limitation of land supply.The increase of urban population will lead to the increase of real estate market demand,and then affect housing prices.The restriction of urban land supply will affect the development cost of enterprises through the rise of land prices,and then affect the prices.Thirdly,the empirical analysis shows that the fluctuation of real estate prices in the Pearl River Delta is more significantly affected by the increase of urban population size.Every 1% increase in urban resident population size will lead to a 1.3% increase in housing prices.Fourthly,the fluctuation of house prices in the Pearl River Delta region is not significantly affected by land factors,and the increase of urban built-up area can not explain the fluctuation of local house prices.