Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 51 , 01 December 2023
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Study on the Dynamic Relationship Between Individual Mortgage Policy and Housing Price Fluctuation in Zhejiang Province -Empirical Analysis Based on SVAR
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Abstract
The eastern Chinese province of Zhejiang is highly developed and contributes to the real estate business. The paper uses quarterly data from 2011 to 2021 to create a Structural Vector Autoregressive (SVAR) model to explore the empirical dynamics between personal housing credit policies and house price changes in Zhejiang Province, China. Impulse response and variance decomposition research reveal that loan interest rates considerably affect housing values. Interest rates affect property values by 0.85% to 30.19% over time. The initial rise in loan interest rates boosts real estate values, but the successive increase will lower them until stability is reached. Large personal mortgage loans also affect housing prices. Throughout time, the share of factors affecting property prices with respect to mortgage loans ranges from 2.32% to 4.31%. The size of mortgage debt boosts home values. Thus, a corresponding easing of mortgage borrowing ceilings will boost home prices. The causal relationship between GDP and housing price swings is unclear, although its impact is stable with modest variations within a limited range. Zhejiang Province should be cautious when adjusting personal mortgage loans and interest rates while improving regulatory control. These techniques reduce market speculation and negative factors to ensure market stability and longevity.
Keywords
Zhejiang province, personal housing credit policyt, SVAR model, real estate price
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-149-0
- ISBN (Online)
- 978-1-83558-150-6
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/51/20230611
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited