A Comparative Study On The Effects Of Residential Property Purchase Limits And Differentiated Credit Policies

Since 1978,the market economy has been liberalized.The recovery of China's real estate industry has made great contribution to the development of our national economy.The real estate industry has made great contributions to the development of our national economy.However,some cities' housing price far surpass people's income,which leads to the phenomena of brain drain,the decline of national well-being,the lack of social welfare and the failure of market self-regulation.Under such background,The state has issued several rounds of real estate control policies in 2010."The National 11","New State 10" had been issued.In 2011 and 2012,cities still continuously strengthened the policy.In early 2016,the central bank cut its interest rates on many occasions after the implementation of the easing monetary policy.House prices have been risen sharply again,affecting the overall steady growth and development of China's economy to a certain extent.In September,another storm of regulation and control was set off across the country.Therefore,in this context of the new round of regulation and control of the property market,this paper compares the effects of residential property purchase limits and differentiated credit policies,which has great practical significance for the government to introduce various control policies and achieve the sustained,steady and healthy economic growth in China.The policy of residential property purchase limits mainly reflects household registration and regional restrictions.Differentiated credit policies are mainly reflected in the restrictions on the proportion of down payment for buyers and the restrictions on lending rates.Both policies affect the commodity housing price from the demand side.However,the residential property purchase limits policy belongs to the administrative means,and the differentiated credit policy belongs to the economic means,and the mechanism of the two is different.This paper chooses 35 quarterly panel data of the average transaction price in 70 large and medium-sized cities in China from the first quarter of 2009 to the third quarter of 2017,by adopting the double-difference method and propensity score matching method.The cities were divided into regulatory and non-regulatory groups to observe the impact of changes in regulatory policies on the prices of commercial housing transactions.This paper explored the impact of the two policies on the effectiveness of the local real estate market and regional differences.The results show that both policies can restrain the excessively rapid rise of housing prices.Residential property purchase limits policy can inhibit the rise of housing prices by 8.5%.Differentiated credit policy can inhibit the rise of housing prices by 13.1%,showing the effect of differentiated credit policy is better than residential property purchase limits policy.The restrictions on the proportion of down payment loans and restrictions on the purchase of purchasing areas are basically ineffective,and the effect of limiting the loan interest rate and limiting the purchase of household registration policy is remarkable.The paper innovates in the following two aspects:First,this paper compares the effects of residential property purchase limits and differentiated credit policies.Second,the panel data used in this paper has a long time span.From the first quarter of 2009 to the third quarter of 2017,a total of 35 quarters can verify the effect of regulatory policies in the long term.The shortcoming of this paper is that the lack of quarterly data that leads to the lack of sample of cities selected and the lack of comparative analysis among cities.