Research on Real Estate Monitoring and Forewarning System Based on System Dynamics Model

This paper concerns the monitoring and forewarning of real estate in China and attempts to establish a simultaneous equation model using housing price factors as its endogenous variables. The study bases itself on system dynamics and an analysis of real estate prices. It aims to set up a real estate monitoring control system, applying Granger causality test on the correspondence between housing and land prices in Shanghai. It discusses theoretical and practical factors involving urban housing prices and their correlations, and also offers corresponding control policy recommendations.