Influencing Factors on Beijing Real Estate Price

In recent years, Beijing real estate price increase continually. The government has introduced a number of policies to curb real estate prices, but the prices stay high. Monthly data such as per capita GDP were handled through co-integrating, Granger causality test and other methods to analyze influencing factors on Beijing real estate price alteration from Mar 2010 to Sep 2016. Results indicated that there is a uni-direction causality between real estate price and per capita GDP, and GDP is the factor driving changes in real estate price; real estate investment and per capita disposable income can promote real estate prices, but the effect is relatively weak. We can conclude that Beijing real estate market was in non-equilibrium conditions. So, proper macro-controlling policies were needed to make assure the real estate industry in exuberance.