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<p>This research analyzes the relationship between housing and rental prices in 26 first-tier and second-tier cities in China before and after the policy of simultaneous rental and sales markets. The PVAR model and monthly panel data of these cities from June 2010 to December 2018 were employed. The study found that, before the policy of simultaneous rental and sales markets took effect, the housing and rental prices were relatively independent of each other, whereas the rental market in second-tier cities is affected more considerably by the sales market. After the enactment of the policy on simultaneous rental and sales markets, rental prices have a positive effect on housing prices, with this effect being more obvious in second-tier cities. The rental prices with the first-order lag have a significant negative impact on current rental price in first-tier cities. Considering the features of the housing market in different cities, the implementation of the simultaneous rental and sales markets policy needs to be more targeted and attention should be paid to preventing simultaneous irrational growth, both on the sales and rental markets.</p>
</abstract>

This research analyzes the relationship between housing and rental prices in 26 first-tier and second-tier cities in China before and after the policy of simultaneous rental and sales markets. The PVAR model and monthly panel data of these cities from June 2010 to December 2018 were employed. The study found that, before the policy of simultaneous rental and sales markets took effect, the housing and rental prices were relatively independent of each other, whereas the rental market in second-tier cities is affected more considerably by the sales market. After the enactment of the policy on simultaneous rental and sales markets, rental prices have a positive effect on housing prices, with this effect being more obvious in second-tier cities. The rental prices with the first-order lag have a significant negative impact on current rental price in first-tier cities. Considering the features of the housing market in different cities, the implementation of the simultaneous rental and sales markets policy needs to be more targeted and attention should be paid to preventing simultaneous irrational growth, both on the sales and rental markets.

Evolution of Relationship Between Housing and Rental Prices and Inter-Urban Differences in China Under the Context of the Simultaneous Rental and Sales Markets Policy

East China University of Science and Technology

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution 4.0 International License.

This research analyzes the relationship between housing and rental prices in 26 first-tier and second-tier cities in China before and after the policy of...

Evolution of Relationship Between Housing and Rental Prices and Inter-Urban Differences in China Under the Context of the Simultaneous Rental and Sales Markets Policy

Pubblicato online: 13 ago 2021

Pagine: 29 - 38

DOI: https://doi.org/10.2478/remav-2021-0019

Parole chiave
housing price, rental price, PVAR model

© 2021 Guancen Wu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Evolution of Relationship Between Housing and Rental Prices and Inter-Urban Differences in China Under the Context of the Simultaneous Rental and Sales Markets Policy

Pubblicato online: 13 ago 2021

Pagine: 29 - 38

DOI: https://doi.org/10.2478/remav-2021-0019

Parole chiavehousing price, rental price, PVAR model

© 2021 Guancen Wu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Parole chiave
housing price, rental price, PVAR model