Urbanization level, changes of housing price and residential sales

Abstract

There is a certain correlation between the level of urbanization, the change of commercial house price and the rate of housing sales. This paper, based on the national data of 31 provinces from 2005 to 2014, adopts the panel empirical model and arrives at the following conclusion. Every 1% increase in urbanization rate leads to 1.49% decrease in housing sales rate of estate enterprises; every 1% raise in house price brings 0.501% raise in housing sales rate; every 1% raise in the number of estate enterprises results in 0.060% increase in housing sales rate; it is also found if the investment rate in estate development increases every 1%, the sales rate will increase by 0.796%; and if the proportion of land value increment tax increases by 1%, the sales rate will drop in turn by 0.027%.