An analysis on the important factors affecting the housing price-based on a five-party game model

Abstract

Currently, China's real estate market relies on direct financing driven by market demand, and is affected by multiple stakeholders, therefore, regulations of real estate market can easily encounter dilemmas. In order to keep the fluctuation of housing prices under control and to avoid impeding macro-economy development by the regulations, all stakeholders should be included into the analysis framework. In the present article, analyzing from the views of stakeholders, we established a five-party mixed game model, including central government, local government, banking institutions, real estate developer and evaluating institutions into the framework, to calculate the equilibrium solution from different alliances and searched for the most important factors affecting housing prices in China. Accordingly, we explored the direction and strength of the optimal regulation to housing price and provided policy recommendations for the government. © Springer-Verlag Berlin Heidelberg 2014.