The Interaction Mechanism of Real Estate Market of Typical Cities in China: Analysis Based on VAR Model

Abstract

As an important part of the national economy, the real estate market is closely related to macro policies, investor confidence, etc., and at the same time shows regional heterogeneity. This study explores the real estate market in four typical cities in China (Beijing, Xi'an, Xiamen, and Chengdu) and analyzes the correlation between real estate prices, sales area, real estate development investment, market investor confidence, and money supply. Through analysis based on the VAR model, it is found that the real estate markets in different cities present their own specific interactive influence patterns. The various factors in Beijing are more closely related and have a continuous impact; other cities have similar characteristics, and the impact of each factor is somewhat different. Therefore, when formulating real estate macro-management policies, it is necessary to consider the market characteristics of different cities and the comprehensive impact of external factors to formulate more targeted strategies and mitigate the potential impact of market fluctuations on the economy.