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The Dynamic Behavior of Chinese Housing Prices

Author

Listed:
  • Changrong Deng

    (University of Electronic Science and Technology of China)

  • Yongkai Ma

    (University of Electronic Science and Technology of China)

  • Yao-Min Chiang

    (National Chengchi University)

Abstract

The objective of this paper is to investigate the dynamic effects of fundamental factors on housing prices in China. We examine how quickly and strongly housing prices react to changes in these factors. We especially want to test whether these reactions change after China adopted a new system for granting land use rights in 2002. We find that the main fundamental explanatory factors explaining Chinese housing price variations are household disposable income, new-build supply, housing units sold, unemployment, and land prices. Among these factors, the most important one is land price. The effect of land prices on housing prices is especially enhanced after adoption of the new system for granting land use rights in 2002.

Suggested Citation

  • Changrong Deng & Yongkai Ma & Yao-Min Chiang, 2009. "The Dynamic Behavior of Chinese Housing Prices," International Real Estate Review, Global Social Science Institute, vol. 12(2), pages 121-134.
    • Handle: RePEc:ire:issued:v:12:n:02:2009:p:121-134
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    References listed on IDEAS

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    Cited by:

    1. Galiani, Sebastián & Gertler, Paul J. & Undurraga, Raimundo & Cooper, Ryan & Martínez, Sebastián & Ross, Adam, 2017. "Shelter from the storm: Upgrading housing infrastructure in Latin American slums," Journal of Urban Economics, Elsevier, vol. 98(C), pages 187-213.
    2. Haiwei Chen, 2017. "Real Estate Transfer Taxes and Housing Price Volatility in the United States," International Real Estate Review, Global Social Science Institute, vol. 20(2), pages 207-219.
    3. Kieran McQuinn & Teresa Monteiro & Conor O’Toole, 2021. "House Price Expectations, Labour Market Developments and the House Price to Rent Ratio: A User Cost of Capital Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 62(1), pages 25-47, January.
    4. Nannan Yuan & Shigeyuki Hamori, 2014. "Are government interventions effective in regulating China fs house prices?," Discussion Papers 1427, Graduate School of Economics, Kobe University.
    5. Chunping Liu & Zhirong Ou, 2021. "What determines China's housing price dynamics? New evidence from a DSGE‐VAR," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3269-3305, July.
    6. Chunping Liu & Zhirong Ou, 2022. "Revisiting the determinants of house prices in China’s megacities: Cross‐sectional heterogeneity, interdependencies and spillovers," Manchester School, University of Manchester, vol. 90(3), pages 255-277, June.
    7. Chunping Liu & Zhirong Ou, 2017. "What determines China's housing price dynamics? New evidence from a DSGE-VAR," NBS Discussion Papers in Economics 2017/04, Economics, Nottingham Business School, Nottingham Trent University.
    8. Angela S. Bergantino & Claudia Capozza & Mauro Capurso, 2018. "Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4937-4953, October.
    9. Nguyen Nghia Hoai & Chinda Thanwadee, 2015. "Investigating Factors Influencing Profits Enhancement in Real Estate Companies in Ho Chi Minh City, Viet Nam," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 1(3), pages 107-113.
    10. Pierluigi Morano & Francesco Tajani & Felicia Di Liddo & Debora Anelli, 2020. "A Feasibility Analysis of The Refurbishment Investments in The Italian Residential Market," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    11. Kelly, Robert & McQuinn, Kieran, 2013. "On the hook for impaired bank lending: Do sovereign-bank inter-linkages affect the fiscal multiplier?," Research Technical Papers 01/RT/13, Central Bank of Ireland.

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    More about this item

    Keywords

    Housing price; Fundamental factors; Land price; Land policy;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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