Forecasting research on real estate prices in Shanghai

Abstract

Based on study on references concerned, the critical factors affecting real estate prices in Shanghai are determined in this paper according to Grey incidence as well as Grey clustering principle. Afterwards, the regression model on real estate prices in Shanghai and other related variables is established with data collected from 1994 to 2008 and the real estate prices between 2009 and 2013 have been forecasted here with the metabolic GM (1, 1) model. The result of forecast indicates a growing trend in real estate prices in Shanghai in the coming years.