Effects Of Property Tax Reform To Beijing Housing Prices

In these years, the Beijing municipal government has issued a series of macro-controlmeasures, which combined with the state council relevant. However, it’s ineffective forthese measures to lower housing price in Beijing. In the process, administrativeintervention and suppression overrides market automatic adjustment mechanism. Whilepolicymakers have preferred property tax to have a tweak impact on house price, taxpolicies will play a stead role on housing market as a whole. At present, the property tax isstill in the pilot reform period and therefore many problems will appear, when it extendedto the national level. How tax reform affect the dwelling price is still unknown, so it needsprofound analysis from different aspects.This paper in a positivistic manner analyses the comprehensive effect of property taxand the role of government from the viewpoint of supply and demand, with Beijing city asa case in point during the construction of tax system. First of all, through the analysis ofreal estate market, author had a deep understanding of housing demand and supplycondition, which concluded into supply and demand curves. That could help author toverify whether the conclusion of qualitative is correct. Learned from domestic and foreignproperty experience reform, we predict the impact of the house property tax on housingprice in several years. Assuming that property tax levied in Beijing, the cost of customersand land agent will change so as their behaviour. At last, combined with profound analysis,author puts forth some advice.This thesis is divided into six main parts: Part one introduces the research’ssignificance, research methods and the literature review. Part two is a summary of propertytax theory and current tax arrangements. Part three is focused on statistics analysis toexplore the current housing market situation in Beijing. Part four is based on developed taxsystem in typical Asian countries and showed the consequence of a policy experiment ofproperty taxation in Shanghai and Chongqing. Part five, the crucial section in this paper, isa profound analysis in home prices from demand and supply angel when property tax islevied. Applying a model in factor analysis method, author found that when property taxarise1%, home price will increase0.8%. In the last part, integrated with front conclusions,author put forward the suggestion on perfecting tax system and related facilities.