TITLE:
The Impact of Rising House Prices on Business Development: Literature Review and Path Analysis
AUTHORS:
Jun Xie, Li Tan
KEYWORDS:
Real Estate Price, Enterprise Investment, Production Efficiency, Innovation Ability
JOURNAL NAME:
Open Journal of Accounting,
Vol.7 No.1,
January
18,
2018
ABSTRACT: Since the housing reform in 1998, China’s real estate market has developed rapidly and real estate prices have been on the rise. The real estate industry has become the pillar industry of our economy. However, historical experience has repeatedly proved that if economic development relies too heavily on real estate and real estate prices continue to rise rapidly and rapidly, it will affect enterprises’ investment, production efficiency and innovation ability, which will affect the steady and healthy development of enterprises. Some studies have found that the rise of house prices has adverse effects on the development of non-real estate enterprises such as cost effect, investment transfer effect and credit effect. Therefore, it is necessary to intensify the regulation and control of house prices, vigorously develop long-term public rental housing and improve the dynamic monitoring mechanism of real estate mortgage, limit the flow of credit funds into the real estate.