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The Determinants of Chinese Property Prices

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  • Ming Qi

Abstract

In this paper, the determinants the housing prices boom in China are investigated. We extend the original model of Yuan and Xiao and Zhou (2006) by involving banks, in order to investigate the behavior of the money lender. A sample of 28 Chinese domestic commercial banks during the period between 2003 and 2009 are used for the empirical test. The results suggest that the mortgage loan has a significant impact on the property prices. Their effects on both condominium and residential prices are positive. However, the prices of High_Grade and Economical Houses have shown an entirely different response to the movement of mortgage credits.

Suggested Citation

  • Ming Qi, 2017. "The Determinants of Chinese Property Prices," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(1), pages 194-201, January.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:1:p:194-201
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    References listed on IDEAS

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    More about this item

    Keywords

    mortgage; house price; banks; interest rate; CPI;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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