The factors affecting housing price in Hangzhou: an empirical analysis

Rahman, Mohammad Mafizur and Khanam, Rasheda and Xu, Suichen (2012) The factors affecting housing price in Hangzhou: an empirical analysis. International Journal of Economic Perspectives, 6 (4). pp. 57-66. ISSN 1307-1637

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This paper explores the factors that affect housing price in the Chinese city, Hangzhou. Providing theoretical
explanation of house price determinants from the demand and supply sides, the paper employs the Ordinary Least Square (OLS) method taking time series data of different variables for 20 years, 1990-2009. It is found that households' income, urbanization rate, lagged sum of annual real estate development investment and foreign direct investment in Hangzhou positively and significantly affect Hangzhou's housing price. The magnitude of the effects of these variables is different, and the effect of urbanisation rate is the strongest. The saving deposits of urban residents have significant negative effect on the housing price. These results are in line with the theoretical predictions. The paper also provides some policy recommendations.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2012 International Economic Society.
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 06 May 2014 06:11
Last Modified: 09 Feb 2017 01:16
Uncontrolled Keywords: housing price; housing policy; Hangzhou; affordability
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910211 Supply and Demand

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