The Empirical Analysis of the Relationship between House Price and Land Price in Wuhan

This paper makes an empirical analysis of the interrelationship between the housing price and land price, taking the quarter sales of commercial housing price index and land transactions price index of the year 2001-2007 as sample.Through unit root test, cointegration test and Granger Test, it is concluded that the interaction exists between housing price and land price in short term, and house price affects the land price in the long term. Therefore, in order to achieve the objective of balancing the land market and real estate market and promote the positive interaction and sustainable development of the market at all levels, the land-supply policies should be made in line with local conditions.