A Study On The Performance Of Real Estate Regulation Policy In China

The housing system reform in the year of1998plays a very important role in the China’s Reform and Opening over30years. The purpose of the reform is to establish a multi-level housing system with giving the priority to commodity housing and indemnificatory housing for added. It helped plenty of traditional stock assets revitalized, which saved the economy out of the Asian financial turmoil. Meanwhile, living conditions had been greatly improved, and huge housing demand also got the outbreak. Since2002, establish fund began entering into the real estate market, which sped up the investment and also led to the rising house price. The growing rate of house price had peaked from the second half year of2004to the first half year of2005, and fell back in2006. However, in2007, the absolute value of house price and the growing rate appeared "Double High" trend. Pushed by easy money policy and proactive fiscal measures in the second half year of2008, the overall property appeared unprecedented "prosperity" and the prices kept strong upward. As a new round of tightening regulation, the growing price rate dropt in2010and2011. However, there existed so many problems in the real estate market, like the surging price of houses and land, the adding investment in the industry, the imbalances of the real estate supply and total structural, and the outstanding housing problems of low-income families. Therefore, it has an important practical significance to study on the performance of real estate control policies, for promoting the healthy development of real estate market.First, this paper generalizes the regulation policies since the residential housing reform and the short-term reaction. From1998to2002, accommodative policies were used to activate the housing consumption. Encouraged by the positive policies, the housing rigid demand released and the housing market developed rapidly. The government started a tighten regulation policy after2002:the threshold for developers had been improved in" documentl21" of2003; In2004, the land and credit were treated as the main regulatory; Then, the government promulgated a series of intensive policies of "article8","article6", policies relating to land, credit and tax, but the red-hot market still exists and the house price entrapped in the cycle of "the tune rising more". From the second half of2008to the first half of2009, the real estate market walked away from downturn to stimulated, after experienced of loose callback policy time. At the end of2009, the market entrapped in the situation of "panic buying", which brought a new round of tighten regulation.Secondly, the paper designs the econometric models containing a policy dummy variable and analyses the influence degree of policies on house prices. The results of the study show that the effect of unveiled policies on house price is distinct in different periods, and the influence of house prices mainly realized through economic growth and credit. This paper expounds the non-significant of performance of the regulation, from the point of the coordination degree of the house price and the national economic, price-to-income ratio and the housing supplying structures. The purchase concept of our Chinese people, the contradiction between the central and local interests, the RMB appreciation and population structure lead to the results.Thirdly, I find out and extract the guidance and enlightenment experience of China’s real estate market by the analysis of the practice of the regulation and control market of overseas real estate. There is one common ground in these countries with perfect laws and regulations, and paying great attention to the residents in the housing guarantee. The key of the regulation is to find a equilibrium point between the fiscal strength and residential housing demand, and speed up the construction of affordable housing under certain financial abundant. The government can curb Real by reasonable tax. What’s more, transparent market, widen fund source and low credit risk are also important.In the last place, policy suggests have been proposed. The government should get their own objectives, and fix the housing markets position as "consumer markets", not "investment markets". In the mid-term, the government should focus on affordable housing, housing supply structure and the improvement of the tax. For the long term, perfect legal laws and regulations should be confirmed for the future development. In the sight of policy tools, the paper emphatically introduces the mix effects of the currency, land, tax, housing and foreign control tools. While constructing the security system, the policies should considered hierarchically for different securities, not treated as "one size fits all". For example, rental market is the main one for the low-income families. In addition, reasonable prices fluctuating range and the executive power of the local government should be listed in the top priority of the regulation.