Abstract
Differences in housing prices and rental prices across cities or regions and the relationship between prices and socioeconomic fundamentals are frequent research foci in urban and real estate economics, but the existing studies on China's housing market rarely consider both housing price and rent. This study provides a framework for a quantitative analysis of a country's housing market from the perspective of supply and demand, and takes China's housing market as a case study. The current study first explores the key factors that affect housing prices and rental prices using data from 202 cities and collected from 2011 to 2014. Then, theoretical values of housing prices and rental prices in each city are estimated, and the spatiotemporal characteristics of deviation of housing prices and rental prices are analysed. The empirical findings of the current study mainly reveal the following three points. First, the determinants of housing prices and rental prices have similarities. Second, the effect of above factors shows obvious spatial heterogeneity. The coefficients of the variables are different between coastal and inland regions, indicating different demand and supply elasticities across regions. Third, the price deviation presents significant spatial agglomeration. Cities with higher price deviations are clustered in the Yangtze River Delta and Beijing-Tianjin-Hebei, while the price deviations are relatively mild in the Pearl River Delta region.
Highlights
Real estate plays a relatively important role in the economic activities of countries worldwide
This study found that the median income, population, construction cost, climate, and public service quality were important factors that explain the differences in housing prices and rental prices across cities [6]
The variance inflation factor (VIF) of all variables is less than 5, indicating that there is no problem of multicollinearity among the variables
Summary
Real estate plays a relatively important role in the economic activities of countries worldwide. As China has a vast territory and many cities, there are great differences in economic and social development across regions and cities It is of great significance for market supervision and decision-making departments to grasp the characteristics of housing prices and rental prices in different cities or regions and judge the reasonability of the current housing prices and rental prices in different cities or regions when implementing targeted management measures. A study focusing on identifying the influencing factors of housing prices and rental prices, exploring the differences between the residential real estate market and the rental housing market in China and presenting the spatiotemporal characteristics of the price deviation and its changes is necessary
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