The Research On The Effect Of Land Supply Policy On Real Estate Market

Since the1990s, along with the continuous development of the socialist market economy and the deepening of monetization of the allocation of urban housing system reform, the industry of real estate is developing very rapidly in China, and soon becomes important pillar industry to support rapid economic growth, the important pillar industry, the real estate industry has high relevancy and strong in the industrial promotion, its health development concerns to the sustained and healthy development of the national economy as a whole. Since2003, problems which respectively are excessive investment in real estate, illegal speculation in trading, dramatically increase in price and prominent contradiction in providing structure appeared in real estate market. According to these problems, Chinese central government continuously carried out a series of regulation and control policy to strengthen the control power of the real estate market, in order to promote price stability and to maintain the sustained and healthy development of real estate industry. Land supply policy, as a important means of regulating the real estate market, has a decisive influence on the healthy development and stable operation of the real estate market. Current scientific theory about the impact of land supply policy on the real estate market is still controversial, did not reach consensus, so in-depth study of the impact of land supply policy on the real estate market is the need for the scientific development of the real estate market regulation policy, to better control the development of the real estate market, more effective use of land supply in the real estate market of the regulation effects is of great theoretical and practical significance.In this background, through theoretical analysis and empirical research, this paper deeply investigates the relationship between land supply policy and house prices,and then strives to reveal the interaction mechanism of the land market and real estate market, in the attempt to promote deepening theoretical research, while at the same time provides the basis for the government to make a scientific and rational land control policy. In the theoretical analysis, this paper uses four quadrant model of real estate market to analyze the effect mechanism of land supply quantity and land price on the house price, and then uses the game theory to analyse the relationship between land supply way and house prices, and further studies the influence influence of land supply structure on house price. Through the theoretical analysis, this paper finds that land supply quantity, the price, the way and the structure of house prices have an impact on house price. In the empirical research, based on the land supply to the house price and housing supply model, this paper uses relevant data in35cities from the years of2003～2010to set up a panel data model to make quantitative analysis of the land supply the influence of land supply on the real estate market. Through an empirical research, this paper found that land supply has significant positive impact on the house price and housing supply, land supply have an impact on house prices by expectations and time lag, and there is a long-term stable equilibrium relationship between land supply and housing supply, the effect of land supply on housing supply is greater than the effect on house price. Finally, on the basis of research results, this paper puts forward relevant policy suggestions to perfect land supply policy on China’s real estate market.