The Impact of Global Financial Crisis on Speculation in Housing Markets of China

Based on the panel data set of 31 provinces from 1999 to 2007,we estimate the speculation in housing markets of China and study on how it has changed after global economy crisis exploded.Evidence shows that myopic expectation and speculation had been stimulating housing prices to go up.The impact of global economy crisis induced that the proportion of speculation in housing prices to increase and regional housing markets become more diverse.We also find the proportion of speculation has no remarkable relationship with housing price.Based on these conclusions,we propose some advices to ensure housing markets keep good condition.