Study On Governmental Policy And The Effect Of House-price Regulation

In recent years, real estate market developing has overheated, which could be seen by the soaring house prices. Despite the central government has showed great determination to control house price and frequently issued various policies, including financial, tax, land and some other policies, emphasizing that it should take local accountability system, the price is still on the up way. The local government has also issued various regulating policies to control house price from the aspects which are closed related to the house price, such as rate, tax, land market and the social-security houses construction. Apparently, examined from the perspective of public policy, there are many disadvantages in the price regulation. As the main policy-implementor of price controlling, local government plays an important role in the process. However, due to China's imperfect of taxation system and the performance evaluation system, local governments tend to use administrative means to intervene in the local economy, only considering their short-term economic interests in the policy implementation process. Besides, facing a coupled with a complexing policy environment, the result is always soaring of the local housing prices as a result of the failure of the effective implementation of the policy.This essay analyzes the house price regulating policies in our country in recent years, dividing them into five stages. Then it makes Guangzhou for an example to analyze the effect of local government's regulation from the indicators of the house price, land price, real estate structure, the development of real estate and construction of the social-security houses. Next, the essay analyzes the reasons from four aspects of the policy, policy-implementor, implementing means and policy environment. At last, the author gives some pieces of advice on local government's regulating the real estate price.