Determinants of Chinese urban house price: Time variation and city disparity.

This paper summarizes determinants and mechanisms of house price movements in general situations and special characteristics in China. On the basis of recognizing the periods during which house price changes differently and classifying cities scientifically, the paper examines the factors driving house price in 35 Chinese cities during different periods from 2001 to 2015 using the panel threshold regression model. The results show that the main determinants of house price in Chinese cities have changed after 2009. Availability of financing, land finance and land restriction policy has a sizable impact on house price, meanwhile the investment role of stock market revealed. As to house prices in different kinds of cities that in category 1 and 2 consisting of first-tier cities and several popular second-tier cities are driven by land finance of local governments, land supply and availability of financing after 2009. Moreover, household income has a significant influence on house price of cities in category 3, which are relatively less developed. [ABSTRACT FROM AUTHOR]