Research on the Determinants of Real Estate Prices in China under Supply and Demand

Abstract

Since the reform and opening up, the real estate industry has gradually become the pillar industry of the Chinese people, directly or indirectly promoting the development of macro-economy. However, in recent years, the continuous rise of housing prices has become the focus of attention of the government and all sectors of society, which has triggered extensive and in-depth discussion and attention on the real estate industry. Real estate prices are not only closely related to people's lives, but also related to the development of cities and the long-term stability of the country. The healthy development of the real estate industry is also related to the composition of household wealth and government revenue, as well as the stable development of the national economy. Therefore, it is of great practical significance to pay attention to the changes of housing prices. This paper mainly summarizes and reviews the relevant literature on the analysis of factors affecting house prices at home and abroad from three aspects: the supply side, the demand side and the hedonic price model of real estate. It provides basic underlying logic for academic research, policy-making, practical application and individual house purchase decision-making.