A Study On Regulation Of Housing Prices By Local Governments

Price regulation is an intervention into the market made by governments when the market fails to adjust prices properly. It is a device for the visible hand to regulate economic development, with the purpose to retrieve the market to a rational and effective state. Price regulation is to standardize prices, which is different from price control. At present, on such questions as whether it is needed, especially in the housing market. Different opinions exist in society and in the theoretical circle:some say yes and some say no. The author holds that it is necessary to conduct price regulation in China's housing market. There are three reasons for this. Firstly, housing products cannot be supplied by the mere market, because of their characteristics of externality and semi-publicity. Secondly, since the gap between the rich and the poor in China has surpassed the global warning limit, housing products, as necessities of life, are likely to enlarge the gap due to their great value. Thirdly, price regulation can bring chances for getting time to improve related supporting facilities while they lag behind in the market-oriented reform in China's housing sector.The thesis analyzes theories, the main idea, methods, and significance of housing price regulation by governments at first. After a brief introduction of Nanning's situation in this aspect, it puts forward measures and suggestions for housing price regulation by local governments in accordance with the relationship between local governments and housing prices.Because of the great number of questions related to the object in this study, and limited knowledge of the author, the analysis in this thesis may be biased and left for further study and improvement.