This paper advances the academic work conducted on identifying some of the determinants of residential property prices in China over the period from 2005 to 2017.A number of determinants have been considered,including conventional macro-economic variables such as disposable income,population,unemployment,consumer price index,investment in residential fixed assets and construction activity as well as market-specific conditions such as government regulations and geographical location.Having established that variables are cointegrated at the first rank,Vector Error Correction Model is applied to show that residential property prices in China are determined in the long run and to a large extent by per capita disposable income,investment in residential real estate,population growth,unemployment rate and consumer price index.The causality tests also confirm that investment,unemployment,consumer price index and construction activity influence house prices in the short run. |