An Empirical Analysis on Regional Influential Factors of Housing Prices in China

An Empirical Analysis on Regional Influential Factors of Housing Prices in China

Using the Pooled Data of housing market of 30 provinces during 1995-2003, this paper investigates the micro-level influence factors of housing prices fluctuation in China. We have found out that income, cost and lagged housing prices are important factors to housing prices fluctuation. The influence factors do not change with time, but vary in different regions. In addition, cost and lagged housing prices are not only the influence factors of the state housing prices, but also the notable impact factors to each region. Thus, we suggest that the government should take different policies in different regions, control the demander and supplier and guide fight expectations.