Empirical Study on the Relationship of Sale Price and Rent of House in China

Empirical Study on the Relationship of Sale Price and Rent of House in China


Author:Yi Fang,Shilei Zhao Journal:Journal of Applied Statistics and Management(Chinese)  Date:2007(6)

Keywords Sale price of house; rent price; panel data; cointegration

Abstract

According to present value model, it adopts seasonal data of price for sale and rent in China’s 35 cities’ realty from third season 1999 to second season 2006 and finds the cointegration vector between sale price and rent which have been examined by using panel data, and suggests to take houses’ sale price and rent as an important factor for realty’s risk evaluation. Furthermore we analyze the rate of growth of price for sale and rent in different time and different cities.


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