Although there are speculation activities in China, from a global perspective the degree of speculation, which varies from region to region, is still just within internationally acceptable limits. The results show that China's housing prices have a clear interaction among the selected cities, and that housing speculation behavior also influences each other in space. For commercial housing speculation degree measurement and comparison, 31 provinces in China were chosen along with the following variables: housing prices, personal disposable income, one-year personal housing mortgage rates, housing prices growing rates, the rent, amount of residential investment, and the construction areas of houses. This paper analyzes the spatial relevance in housing prices among different provinces in China by calculating Moran's I index and by measuring the speculation degree through spatial autoregressive model (SAR), a spatial economic model combined with a spatial weight matrix. The housing market in China is not isolated by province, since speculative behavior in one part of the country can affect other regions. The main reason for this is the speculative demand for housing, which breaks the equilibrium of supply and demand, leading to housing prices deviating from their basic value. Since the housing marketization reform, China's real estate industry has rapidly developed and commercial housing prices have risen sharply.
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