An Empirical Research on Interactive Relationship of Urban Housing Prices in China: Analysis of Six Major Cities

Abstract

This paper applies non-linear granger causality test and impulse response function method to analyze the spillover effect of housing prices fluctuation among six major Chinese cities, namely, Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and Chongqing. Results indicate that fluctuation of urban housing prices in the short term is a wide range of positive spillover effect, and then the effect will gradually disappear. The spillover effect of housing prices fluctuation and cities’ space distance do not necessarily exist relationship; at the same time, Shanghai housing price fluctua tion has a great influence on other cities generally. Accordingly, relevant policy suggestions are put forward.