Analysis on Real Estate Investment Behavior Cognition Based on HS Model

In recent years, through a great deal of relevant empirical studies, it reveals that the phenomena of under-reaction and over-reaction are increasingly obvious in the real estate market, as the investors´ deviation of awareness and the inadequate access to information. In this paper, based on the perspective of behavioral finance, investigation and analysis are carried out to the behavior characteristics of the investors in the property market. The investigation and analysis are based on the three investor mental models which are the BSV model, the DHS model and the HS model. Through questionnaires and simulation research methods, the result indicated that, to a certain extent, there exists difference between the real estate investor of our country in the behavior performance and the behavior factors which the BSV model and DHS model have. But it has the good uniformity with the behavior foundation of the HS model. Therefore the HS model is, to some extent, suitable to analyze the phenomenon of over-reaction and under-reaction which may exist in China´s real estate market. And based on the results of the analysis, put forward some relevant policies and proposals.