TEffect of Urban Land Price Fluctuation on Real Estate Industry——Empirical Analysis with Data of 20 Cities 1999 -2005 in China

This paper investigates the relationships between land price and real estate price with data from 1999 to 2005. It concludes that real estate price has significant effect on land price, but land price has insignificant effect on real estate price. We then propose three paths of transmission mechanism of land price and real estate price, of which variables are mostly interrelated. We find that financial support and land policy play important role in the price change of land and real estate. Thus, financial support, investment and taxation as well as land price are measures to be taken to restrain real estate price. This research provides a reference for the government to develop proper monetary and real estate policies.