Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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Research on the Impact of Interest Rate Changes on Real Estate Investment Returns in First- and Second-tier Cities: Based on the Heterogeneity Analysis of Weighted Housing Prices

Authors
Yixuan Wang1, *
1School of Economics, Fujian Normal University, Fuzhou, China
*Corresponding author. Email: 13515967888a@gmail.com
Corresponding Author
Yixuan Wang
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_27How to use a DOI?
Keywords
Interest Rate Transmission; Interest Rate Policy; Empirical Analysis
Abstract

This study constructs a dynamic panel model to analyze the impact mechanism of interest rate changes on real estate investment returns. The empirical results show that: (1) For every 1 percentage point reduction in the loan prime rate (LPR), the weighted housing prices in first-tier cities and second-tier cities increase by 5.8% on average, and 3.2% in second-tier cities, showing significant differences in urban energy levels; (2) Interest rate transmission is mainly achieved through credit channels (impact coefficient β =-0.032, p<0.01) and expected channels (β =0.018, p<0.05), in which land scarcity will reduce the transmission efficiency; (3) The policy time lag has been shortened to 3 months, and the impact period of interest rate adjustment on housing prices after the LPR reform in 2022 has been shortened by 50% compared with before. This study reveals the differentiated response characteristics of different city levels to interest rate policies, provides a quantitative decision-making basis for the implementation of precise real estate regulation, and verifies the policy effectiveness of the reform of LPR formation mechanism.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_27How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yixuan Wang
PY  - 2025
DA  - 2025/11/03
TI  - Research on the Impact of Interest Rate Changes on Real Estate Investment Returns in First- and Second-tier Cities: Based on the Heterogeneity Analysis of Weighted Housing Prices
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 213
EP  - 220
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_27
DO  - 10.2991/978-94-6463-874-5_27
ID  - Wang2025
ER  -