The Research of Cost Performance of Urban Housing in China: Base on the Theory of Scenes

In the last decade, the rising real estate price in Mainland China has become a worldwide issue. All walks of life paid close attention to the urbanization process stood by flourishing Real Estate Market in China. Moreover, some scholars have more emphasis on crisis and bubble hidden by the fast-rising real estate price. Researches and analysis on commercial housing vacancy ratio, relationship with housing price land value and Housing Price-to-Income Ratio have occupied the mainstream. These researches either stressed the influence on housing price by the cost of residential land from the perspective of supply or underlined the mismatch of housing price and per capita income from the perspective of demand. However this paper argues that whether there exist bubbles in commodity residential market is a dynamic equilibrium process, it is difficult to judge only by one-side factors. Hence according the Theory of Equilibrium Price posed by New Classical Economics, this paper re-examine the residential market bubble issue in China from a totally new perspective- cost performance of commodity housing based on Principle of Supply-demand equilibrium. Using ideological system of the latest achievements of Scenes Theory from Chicago School, this paper selected Panel data from 2001 to 2012 in 147 main cities in china, built urban residential Scenario index to measure cost performance of commodity housing in different regions in China and empirically proved the rationality and validity of the index. Finally this paper points out that urban cost performance of commodity housing ruled low in general, Second-tier cities had a low commodity residential market bubble level rather than first- and third-tier cities had a high level and offers targeted policy recommendations for macro-control of real estate market of the government of China.