The Property Tax Impacts On The Housing Price

The real estate market has entered a rapid development period during these years and the housing price is rising all the time, which brings about a series of problems. The housing price is so high that residents cannot afford, at meantime it promotes the desire of investment on the real estate and speculation. The government has made a lot of policies to control the housing price, including land, monetary, fiscal and interest rate policies. Property tax policy is an effective tool for the real estate market regulation, which has great effect on the allocation of resources and plays an important role of building local government revenue system. So this research is aiming at study the relationship between property tax and housing price and how to reform the property system to achieve the goal that control the housing price.Starting from analyzing the property tax system, this paper explored the relationship between property tax and bousing price from the supply-demand aspect, using the partial equilibrium method. And then, build the panel regression model and panel error correction model after passing the panel unit root test and panel cointegration test. At last, this study made the empirical test from the national and regional perspectives, based on which, put forward with some suggestions for the government and real estate enterprises. The empirical results indicated that the property tax had a negative effect on the housing price generally while the short-term effect was more obvious than the long-term effect. Furthermore, the influence was distinct during different regions. In eastern areas, high property tax would lower down housing price effectively while the influence is ambiguous in the western and middle areas.