Analysis On the Influencing Factors of Housing Price in China

Abstract

In order to recognize and analyze the influencing factors of housing price, based on the previous literature, this paper mainly examined 3 major factors: Supply Factors, Demand factors, and Government Policy Intervention in Chinese Housing system. It was indicated that, for supply factors, development investment in the real estate market has a considerable impact on the supply and price of real estate. While for the Demand respect, we further divided it into two factors including population and level of urbanization. The results showed that although total population has no clear relation with the housing price, population aging was a positive relation with the real estate. Also, the level of urbanization only has positive relations with some parts of China. Government policy intervention is unique in China, therefore, the results of this paper could provide some useful information for the investors and governors in analyzing Monetary policy, Housing credit system, Land system, and Taxation system. Generally speaking, our paper generates a better reasoning of Chinese Housing Price.