The Determinants of Chinese Property Prices

摘要

In this paper, the determinants the housing prices boom in China are investigated. We extend the original model of Yuan and Xiao and Zhou (2006) by involving banks, in order to investigate the behavior of the money lender. A sample of 28 Chinese domestic commercial banks during the period between 2003 and 2009 are used for the empirical test. The results suggest that the mortgage loan has a significant impact on the property prices. Their effects on both condominium and residential prices are positive. However, the prices of High_Grade and Economical Houses have shown an entirely different response to the movement of mortgage credits.