What are the factors that affect the real estate price?

Real estate prices have changed under the influence of various factors. In order to grasp the movement law of real estate prices, we must understand the factors that affect real estate prices.

According to their own nature, various factors affecting real estate prices can be divided into economic factors, social factors, administrative and political factors, internal factors of real estate and environmental factors.

1, economic factors

The factors that affect the real estate price are mainly the economic development level, economic growth, industrial structure, employment, residents' income level, investment level, financial revenue and expenditure and financial situation of a country, region or city.

These factors will affect the overall supply and demand of the real estate market, especially the demand. Generally speaking, the higher the level of economic development, the faster the economic growth, the more reasonable the industrial structure, the higher the employment rate, income level and investment level, the more fiscal revenue, the better the financial situation, the greater the demand in the real estate market and the higher the overall level of real estate prices.

On the contrary, the lower the overall level of real estate prices. Judging from China's situation, since the reform and opening up for more than 20 years, the real estate price has greatly improved compared with the beginning of the reform, which is due to the rapid development of a series of economic factors such as the level of national economic development and the income level of residents.

At present, there are significant differences in real estate prices between coastal areas and the mainland, and between big cities such as Beijing, Shanghai, Guangzhou and Shenzhen and ordinary cities, which is mainly due to the obvious differences in the above economic factors among these cities.

2. Social factors

Social factors affecting real estate prices include population, family, city formation history, urbanization, social security, culture and fashion.

Among them, demographic factors include the number, density and structure of the population (such as cultural structure, occupational structure, income level structure, etc.). ); Family factors refer to the number and composition of families. Culture and fashion mainly refer to cultural atmosphere, customs and habits, public psychological trends, etc.

The influence of social factors on real estate prices is quite complicated. Its action mode is not as direct as economic factors, and its action process is relatively long, which is a kind of permeable influence. For example, the influence of the history of city formation on the real estate price level in a region, although not as obvious as the influence of economic factors, is often very far-reaching and fundamental;

In many cities in China, a certain area has always been a high-value area of real estate price level because of its unique development history, such as the Bund in Shanghai, Xujiahui, Gulangyu Island in Xiamen and Bajing in Qingdao. Some social factors have different effects on real estate prices at different stages.

If the population density increases, the demand for real estate will increase at first, which will lead to an increase in real estate prices. However, if it develops to a certain extent, it will lead to the deterioration of the living environment, which may lead to a decrease in demand and a decrease in real estate prices.

3. Administrative and political factors

The administrative factors are mainly some systems, regulations, policies and administrative measures of the state or local government in finance, taxation, finance, land, housing, urban planning and construction, traffic safety and social security. Political factors mainly refer to the degree of political stability and the political and military relations between countries.

Both administrative and political factors are embodied by the state machine, so its influence on real estate prices is also very prominent. For example, the determination of the use of a piece of land in urban planning determines the basic price level of this land.

Different from economic and social factors, administrative and political factors have a relatively rapid impact on real estate prices. If the economic and social factors are gradual, then the administrative and political factors can be said to be abrupt.

4. Real estate internal factors and surrounding environmental factors.

This factor mainly refers to the real estate itself and its surrounding environment, such as the location, area, shape, appearance, orientation, structure, internal pattern, equipment configuration, construction quality, and environmental geology, geomorphology, meteorology, hydrology and environmental pollution.

First of all, the internal factors of real estate itself play an important role in restricting the production cost and utility of real estate, thus affecting the price of real estate. If land prices rise and building materials prices rise, it will bring about cost-driven housing price increases.

The improvement of the internal quality and utility of commercial housing will also lead to the improvement of the internal quality-improved housing price. For another example, the orientation of the house will also affect the house price. In mid-latitude areas, houses facing south are more comfortable than houses facing north, so the price is higher.

Extended data:

The position and function of real estate price;

1, the basic location of real estate prices

Real estate price plays an important role in the whole price system. From the perspective of production, real estate is the space and place where all commodities are produced. In order to make the price of these real estate (including rent) get value compensation, it must be included in the production cost and become an integral part of the commodity price.

From the perspective of consumption, housing consumption is an important part of labor reproduction cost.

2. The main functions and functions of real estate prices.

The basic position of real estate price in the market price system determines that it has very important functions and functions in the market economy. Specific performance in:

(1) First of all, the price level of real estate, as a basic price, determines the price level of the whole market to some extent. As a factor of production, the real estate price not only affects the material cost of commodity production, but also affects the wage cost. Whether the real estate price is reasonable or not not not not only determines the production cost and the true degree of all commodity market prices;

Moreover, because the value of housing accounts for a large proportion of residents' consumption expenditure, house prices occupy a relatively large weight in the consumer price of the whole society and play a decisive role in the consumer price of the whole market to a certain extent.

(2) Secondly, housing is an important means of consumption, and house prices play an important role in regulating the living standards of residents. High housing prices and low affordability of residents will lead to a decline in living standards and quality;

On the contrary, low housing prices can enhance residents' purchasing power and correspondingly improve their living standards and quality. Therefore, the level of housing prices has become a major economic and social issue related to the vital interests of residents.

(3) Thirdly, as the most important regulation mechanism of market economy, price also plays an important role in regulating the total supply and demand and structure of the real estate market. It can adjust the relationship between supply and demand of real estate. The high price of commercial housing will make developers profitable, increase the amount of development, and thus increase supply, while high housing prices will reduce consumers' purchases and demand;

On the other hand, if the price of commercial housing is low and the developer is unprofitable, then the development volume will be reduced, thus reducing the supply, while the low housing price will encourage consumers to buy, thus increasing the demand, so that the price lever can be used to adjust the relationship between supply and demand of commercial housing and achieve the balance between supply and demand.

At the same time, the rationalization of different types and levels of real estate price structure can also adapt the supply structure of commercial housing to the consumption structure, thus realizing the balance of real estate structure. Here, the real estate price mechanism and the supply and demand mechanism are interactive and play their regulatory functions.

References:

Baidu encyclopedia-real estate price