Rational Thinking on the Debate between Housing Price and Land Price

Currently there is drastic social debate between housing price and land price.After systematically organizing the viewpoints of all parties,this paper argues that land price is a kind of demand price.Present high land price is due to strong demand for the land resulted from high housing price.The factors affecting house price is very complex and land price would not have significant influence on housing price in short term because of the regulating role of floor area ratio.Most housing prices have relationship with housing location,economic situation and other factors of economic fundamentals.This view has also been supported by empirical evidence published by Minister of Land and Resources recently on survey data from 536 real estates among 105 cities nationwide from 2006 to 2008.Finally,the paper argues that it is spatial monopoly,abnormal strong demand for housing and local government inaction that mainly leads to soaring housing price.