Growing and declining of aged population asymmetric real estate price reactions: The proof of China

Abstract

The population of China will be to undergo considerable permanent reduction because of aging significantly and a low fertility rate by 2050. After discussing different factors which induced the real estate price fluctuation of China , this paper proposes a mixed model to analyze the relations between the change of aged population with housing price. The empirical result indicates that asymmetric price reactions: growth in aged population numbers has not significantly lowered prices, whereas declining in aged population has a significant effect on price .The paper gives the guide about how to choose the balance between aged population with real estate price. © 2010 Springer-Verlag Berlin Heidelberg.