Study On The Impact Of Land Finance On Housing Price Based On The Perspective Of Land Price

The central government has extracted local tax rate enormously since the system oftax distribution in1994. Along with the rapid and prosperous development of the realestate market in our country, relying on the land financial ways like the land sales andits related taxes, local government has made the significant financial revenue in order toincrease revenues to fill the financial expenditure. In recent years, the local governmenthas more and more land revenue and the land revenue of many cities can account formore than60%of the total amount of local fiscal revenue. Meanwhile, the prices ofreal estate are showing a rising trend. And it is easy to think of whether the rise of realestate prices is closely associated with land finance or not.Some scholars have carried out theoretical analysis and empirical research ofmechanism problems on land finance influence on the prices of real estate, but they donot have an agreement on them. One point of view is that land finance is real pushinghands behind of estate prices, but another point is that there is no link of land financeand land prices. And also the research of some scholars shows that land finance canreduce housing prices. According to above conclusions, it is necessary to do someresearch of the relationship between them in order to explore whether the cause ofinconsistent conclusions because there are other variables between the two working. Itcan be found that, based on the comparison of regional land finance and housing prices,although the degree of fiscal dependence on land in some areas is higher, thecommercial housing price of them is not high. In contrary, the degree of fiscaldependence on land in other areas is not high, but the commercial housing price ishigher.This thesis begins with the review and description of some related researches andtheories at home and abroad, and analyzes the reform of financial system in China, thedegree of dependence of the land finance, the dynamic of land price, and thedevelopment of real estate industry. And then, based on above theoretical study andanalysis of the reality, it does the empirical research of the influence of land financialdependence on housing prices from the perspective of land price. The result of researchshows that the land finance has positive influence on housing prices, but the effect is notvery significant, while the land price adjusts the relationship between the fiscaldependence on land and the commercial housing price significantly and positively. Finally, in order to regulate the real estate market and change the situation of thedependence of the local governments on land heavily, it gives some policies andsuggestions, from the aspects of improving management structure of the government,optimizing the land transfer system, perfecting the system of land property rights,setting on reasonable land increment income distribution mechanism, reducing theexpectation of the rising housing prices, building and advancing the mechanism of thedifferent interest in rate pricing. It is hoped that the policies and suggestions can providethe theoretical and practical value for constantly enriching the theory of the relationshipbetween the land finance and housing prices, reducing housing price and perfecting theland financial policy.