Study on influencing factors of real estate price in China: A factor analysis approach

The price of real estate in China is experiencing a biggish fluctuation in recent several years. Under the trend of up going as a whole, different areas appear obvious inconsistent degree, which may bring instability to economy, and further draws extensive attentions and debates. In this paper, after considering many factors influencing the real estate price., we select several main variables from the aspects of the income, demand and supply, finance and monetary policy etc, and then employ factor analysis method to analyze and calculate the scores for different areas, combining with the different background among different regions of China, choosing relative data from 2001 to 2005 basing on the selective variables. At last find out the core influencing factors to real estate price in different regions. Hereby different policy measures can be taken to different areas basing on above analysis.