Analysis on Factors of Chinese Residents' Real Estate Investment Decision

The study of house price-income ratio, house price-rent ratio and house rent-sale ratio in Chinese real estate market shows that speculative demand is the main reason leading to the current high price. Empirical analysis shows that interest rate, price level and income are important factors affecting real estate speculation. Government macro-control policies are to maintain the preferred Interest rate policy,to form the stability expectation of house price and price in the long term, to raise income level and form income growth expectation. Those will help the macro-control goals of "curbing house price rising rapidly and stabilizing and promoting the healthy development of the real estate market" accomplished.