Research on Real Estate Price Bubbles through Supply Variables

The research on real estate bubbles can be analyzed from two perspectives: the demand and supply variables, but most researchers only consider the supply variables while ignoring the important supply factor: the land supplement. The land supply amount and the supply mode affect the real estate market. The total amount of land supply may be directly proportional to the supply changes in the real estate market; while the size of a single parcel may be in an inverse proportion to the supply changes in the real estate market. Through theoretical analysis, we learn that the main ruling part's monopoly of land markets has led to the total lack of land supply and the fact that the supply of a single parcel is too large, thus leading to real estate bubbles to a certain extent.