Study On The Effect Of Government Real Estate Regulation And Control And Price Regulation

With the development of social economy and the continuous promoting ofurbanization, China’s real estate industry has been booming, and evenoverheating. Housing prices have been soaring over the normal level of livingand economic development in our country, giving rise to a series of problems,resulting in a trend of bubble economy in real estate market. In order to "stabilizehousing prices","promote the prices return to reasonable level", the centralgovernment has introduced a series of policies to control prices, coveringadministration, land policies, financial policies,taxation and other aspects. In theimplementation of the central government’s real-estate-market policies, Wuxigovernment has adopted the policies to local conditions. So, how effective are theregulatory policies? Have they achieved the desired goal? And upon the effects ofcurrent situation, what could be the possible direction to go and measures to betaken in the next step?To answer these questions, this article starts with a periodic review of thereal estate policies introduced by the central and local governments over the yearsin Wuxi city. Then the article focuses on the regulatory effect of "housing prices"as clues to the questions in view of the facts that housing price is an importantrepresentation of real estate market, and price stability is both the core target ofreal estate policy and the most concerned market factor by the public, Anempirical analysis of the real estate price data of Wuxi city is conducted. Landprices, housing prices and housing-price-to-income ratios have been selected asthree representative and quantifiable indicators."Before-after" comparativeanalysis model is applied to assess the effects of the policies, With acomprehensive analysis on the data of the real estate prices before and after eachstage of the implementation of the policy in Wuxi City, the article illustrates theeffect of Wuxi City’s real estate prices regulatory policy, and points out that thereal estate policy has not achieved a "stable prices" target, rather, shown a trendof foaming.The final part is the summary of experience and lessons. From theperspective of public policy evaluation and the effects of housing price control, this article traces back to the reasons why the control had failed in achieving thedesired targets so as to explore the problems existing in the real estate policy.Also, by learning the advanced experience from foreign countries, the articlediscusses how to improve the management of real estate policies, ensure the goalof "price stability" and even "the reasonable prices return" to be achieved, andpromote sustainable and healthy development of real estate market under newsituation.