The Study on the Housing Price's Fluctuation

Recent years the housing price has been increasing sharply in some cities of China, which is out of the anticipation of many scholars and experts. As we know, the demand of houses can be divided into demand of self-dwelling and investment. The author thought that the main reason of the housing price's fluctuation is the duality of housing function, i.e. self-dwelling, investment and speculation. And the power of the mechanism operation is the pricing strategy adopted by the real estate companies which form oligopoly in a region market. This paper tries to study the housing price's fluctuation using the oligopoly theory based on the special attributes of houses and explains the true reasons of the sharply fluctuated housing price in some cities. It has great importance to improve the price management system of our country.