Empirical Testing of Influencing Factors of China’s Housing Prices - Evidence From Provincial Panel Data

Abstract

This paper empirically tests influencing factors of China’s housing prices utilizing provincial panel data. Empirical results find that unemployment rate, aging rate, and elderly dependency ratio have a negative relation with average selling price. Completed real estate area, year-end population, population growth rate, GDP, and disposable income of urban residents are positively related with average selling price. This paper divides China into East, West, and Centre. Influencing factors of housing prices are tested in three regions, respectively. Among all influencing factors, completed real estate area, elderly dependency ratio, and year-end population have significant impact on housing prices in the East, while have little impact on housing prices in the Center and the West.