Study on difference of regional housing price bubble in China

With rising of housing price in regions such as Shanghai, Beijing and Hangzhou, the question of "Is there any regional real estate bubble in China" is much debated by the academic and the practise circles without any last word up to now. In this paper, panel data model, based on assets value determining theory, where major fators influence housing price is analyzed in the way that basic housing price shall be explained by basic macro-variables and bubbles in housing price by expectation in rising of price, is used to identify the bubble in regional housing price in China, it is obvious from the positive study that housing price of most regions rise reasonably in China in year 2003 and 2004, except few regions such as Shanghai, Zhejiang and Gansu, but since year 2005, except regions such as Neimenggu, Helongjiang, Jiangxi, Hunan, Guizhou, Gansu and Ningxia, where housing price is in a safe increasing range, most regions in China have experienced over-hot in housing price to some extent, especially in Zhejiang, Beijing and Shanghai, where bubble is over than 30%, which shows the bubble trend varying obviously with passing of time, and even if it is analyzed in the same period, the difference is also distinct in different regions, from which, it is recommended that local government shall adopt pertinent measures to control regional housing price.