The Influence of Floating Population on Real Estate Prices: An Empirical Study of Beijing

Abstract

Housing market of Beijing has been active in recent years with rapid price growth, though sequential strict housing policies were carried out by the government for stabilizing the price; further evaluation of them is needed. Large amount of population flowed into Beijing due to its superior city resources, stimulating diverse housing demands. The paper builds Panel Data models of Beijing’s housing price data in 2000-2016 and implements stepwise regression method for the measurement of the influence that floating population has on housing prices with comprehensive considerations of other factors. It reaches a conclusion that floating population has remarkably positive influence on housing prices, namely, when it grows by 1%, the average selling price of commercial residential real estate will have variation of 9158.023 Yuan/m2. Based on the results, the paper proposes that the government should make a reasonable control of the city population, improve the integrity of the supplying system, produce to reverse pressure for relief of the excessive price growth.