Author(s)

Na Yan

College of Economics, Jinan University, Guangzhou, China.

The real estate industry has been in a stage of rapid development since 2000, and its pulling effect on economic growth is very significant, but it has continued to develop at a rapid pace over the years. The rising prices that follow have also had a lot of impact on all aspects of society and economy. However, a country’s macroeconomic control policy, especially monetary policy, has a very important impact on the development of the real estate industry. For example, the expansionary monetary policy since 2008 has increased the money supply, so that the real estate market investment and consumption rising, house prices accelerated. Although there are also a lot of restrictions of macroeconomic policy on the rise of house prices, the effect is not obvious. Therefore, it is necessary to make use of the policy means to regulate the real estate industry in order to achieve healthy development. This paper first analyzes the mechanism of monetary policy influencing real estate price, and then discusses the effect of monetary policy on real estate market by using empirical research method. It is found that both money supply and interest rate will have an impact on real estate price. Finally, combined with the conclusion of the analysis, some policy suggestions are put forward to improve the monetary policy system for the healthy development of the real estate industry.

Monetary Policy, Real Estate Prices, VAR

Yan, N. (2019) Study on the Influence of Monetary Policy on Real Estate Price in China. Journal of Service Science and Management, 12, 152-171. doi: 10.4236/jssm.2019.122011.