Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions
Based on the close relationship between real estate and capital financing, this paper specifically discusses the impact of interest rate changes in China on real estate market transactions. Housing price regulation has been a hot and focused topic of economics research. It is important to explore th...
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| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2022/9946703 |
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| _version_ | 1832564605650468864 |
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| author | Chang Chen Haoyu Zhai Zhiruo Wang Shen Ma Jie Sun Chengliang Wu Yang Zhang |
| author_facet | Chang Chen Haoyu Zhai Zhiruo Wang Shen Ma Jie Sun Chengliang Wu Yang Zhang |
| author_sort | Chang Chen |
| collection | DOAJ |
| description | Based on the close relationship between real estate and capital financing, this paper specifically discusses the impact of interest rate changes in China on real estate market transactions. Housing price regulation has been a hot and focused topic of economics research. It is important to explore the effect of interest rate on real estate market transactions, for the interest rate is an important tool for the government to carry out macrocontrol of the real estate market and affects residents’ consumption choices of goods. Currently, most scholars believe that interest rate changes have a significant impact on house prices, but their studies are often based on empirical analysis of macro data, making it difficult to exclude the effects of economic differences, geographic characteristics, and other factors. Also, some scholars believe that it is difficult for interest rates to have a long-term impact on real estate prices. This paper applies the experimental economics method to simulate real estate transactions in the real market and control the irrelevant variables to study the movements of housing prices, transaction volumes, consumer transaction intentions and bubble indices under different deposit and lending rates. The results show that: (1) The level of deposit interest rate has a significant inhibitory effect on housing price and a significant promoting effect on real estate market transaction volume and traders’ house-buying behavior. The higher the level of deposit interest rate is, the better the degree of regulating house prices deviating from the theoretical price is and the better the effect of inhibiting market bubbles. (2) The level of lending rate has a significant inhibiting effect on the volume of real estate transactions and a significant promoting effect on the house-buying behavior of traders, but its effect on housing prices and market bubbles is not significant. The higher the level of lending rate is, the better the degree of regulating housing prices deviating from the theoretical price is. (3) The effect of deposit interest rate and lending rate policies on the house selling behavior of market traders is not significant. |
| format | Article |
| id | doaj-art-4cf292b0707b4ef48d40ee00234684ec |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-4cf292b0707b4ef48d40ee00234684ec2025-02-03T01:10:36ZengWileyDiscrete Dynamics in Nature and Society1607-887X2022-01-01202210.1155/2022/9946703Experimental Research on the Impact of Interest Rate on Real Estate Market TransactionsChang Chen0Haoyu Zhai1Zhiruo Wang2Shen Ma3Jie Sun4Chengliang Wu5Yang Zhang6School of Economics and ManagementSchool of Economics and ManagementSchool of Economics and ManagementSchool of Economics and ManagementSchool of Economics and ManagementSchool of Economics and ManagementSchool of Economics and ManagementBased on the close relationship between real estate and capital financing, this paper specifically discusses the impact of interest rate changes in China on real estate market transactions. Housing price regulation has been a hot and focused topic of economics research. It is important to explore the effect of interest rate on real estate market transactions, for the interest rate is an important tool for the government to carry out macrocontrol of the real estate market and affects residents’ consumption choices of goods. Currently, most scholars believe that interest rate changes have a significant impact on house prices, but their studies are often based on empirical analysis of macro data, making it difficult to exclude the effects of economic differences, geographic characteristics, and other factors. Also, some scholars believe that it is difficult for interest rates to have a long-term impact on real estate prices. This paper applies the experimental economics method to simulate real estate transactions in the real market and control the irrelevant variables to study the movements of housing prices, transaction volumes, consumer transaction intentions and bubble indices under different deposit and lending rates. The results show that: (1) The level of deposit interest rate has a significant inhibitory effect on housing price and a significant promoting effect on real estate market transaction volume and traders’ house-buying behavior. The higher the level of deposit interest rate is, the better the degree of regulating house prices deviating from the theoretical price is and the better the effect of inhibiting market bubbles. (2) The level of lending rate has a significant inhibiting effect on the volume of real estate transactions and a significant promoting effect on the house-buying behavior of traders, but its effect on housing prices and market bubbles is not significant. The higher the level of lending rate is, the better the degree of regulating housing prices deviating from the theoretical price is. (3) The effect of deposit interest rate and lending rate policies on the house selling behavior of market traders is not significant.http://dx.doi.org/10.1155/2022/9946703 |
| spellingShingle | Chang Chen Haoyu Zhai Zhiruo Wang Shen Ma Jie Sun Chengliang Wu Yang Zhang Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions Discrete Dynamics in Nature and Society |
| title | Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions |
| title_full | Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions |
| title_fullStr | Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions |
| title_full_unstemmed | Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions |
| title_short | Experimental Research on the Impact of Interest Rate on Real Estate Market Transactions |
| title_sort | experimental research on the impact of interest rate on real estate market transactions |
| url | http://dx.doi.org/10.1155/2022/9946703 |
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