Restrictions Effect Assessment Of Real Estate In China

Since the reform and open policy, the real estate industry has developed rapidly in our country which almost become a supporting pillar of GDP in the new century.However, with the increasing number of development, the real eatate prices, as we can see, has been rising faster than the residents income level, especially in medium and large cities, which causes the reduction of happiness,serious brain drain, the decline of social welfare and the disadventages of market economy problem standing out. Therefore, the government has enacted the policy for purchasing in Beijing,Tianjin, Shanghai and other cities in April 2010, which called "Home-Purchasing Limits", to stabilize the real estate prices, to curb "stories" and other malicious speculation, to smooth growth curve of real estate, and to promote the healthy development of the real estate market. Undeniably the restriction policy has been enacted in most cities in China.This paper mainly describes the concrete implementation process of the restrictions, analyzes the problems existing in the real estate market according to the status quo of real estate, and tries to explore whether the real estate prices, which is due to the promulgation and implementation of the policy for purchasing, are stabilized. This article selects 70 large and medium-sized cities in China from July2005 to March 2015 the decade of the new housing, new commercial housing and three types of second-hand housing prices monthly panel data, by using the Difference-in Difference method(DID) model to carry on the quantitative study. The analysis found restrictions, in a certain extent, inhibiting the rise in prices. According to the result of empirical analysis, this paper puts forward the specific buyers considering the specific circumstances, depth, it analyzes the reasons of rising home prices provided by real estate speculation for targeted measures, reasonable shunt way and policy Suggestions such as perfecting the policy supporting system for purchasing to coordinate the implementation of the real estate restrictions. In addition, real estate restrictions as a kind of administrative means will gradually transit to exit in the future.But how to improve the exit mechanism is still an open question.The innovation of this article is to explore the impact of the Home-Purchasing Limits on the consumer index. During the implementation of the Home-Purchasing Limits, consumers keep the conservative attitudes, have a serious decline in theconsumer satisfaction, and present a pessimistic situation. In addition, this paper put forward a several stages of this policy times, including panic, maintenance,adjustment phase, evaluate the effect of the policy, and give appropriate policy recommendations for each stage.