The Impact Of Urban Land Supply On Commodity Housing Price In China

Since China's urban housing distribution market-oriented reform implementation,along with urbanization,China's commercial housing market has experienced rapid development period of more than a decade,which produce a lot of problem that we can't ignore,for example,the price of housing in some cities is far higher than the residents can afford,and then the housing problem become one of the urgent issues to be solved in these cities.The housing market supply appears regional and structural imbalance,even has the coexisting phenomenon of housing shortage and oversupply,which affects the health and stability of the housing market.Government is also trying to a fiscal and monetary policy,such as credit,taxes and interest rates to control the trend of commercial housing prices rise rapidly,but failed to achieve expected goal,some cities housing prices rising trend intensified instead,even by the first-tier cities spread to the secondary cities,become a big problem to the government in regulating the real estate market.The government is also trying to take credit,taxes,interest rates and other fiscal and monetary policy to control the trend of commercial housing prices rise rapidly,but failed to achieve expected goal,furthermore,some cities housing prices rising trend intensified instead,even spread from first-tier cities to second-tier cities,which become a difficult problem for the government to regulate the real estate market.China's urban housing market is different from other countries and regions mainly because the land is owned by the state,thus,a "supply-oriented" land supply model with both planned and market economy features is formed,which makes the urban local governments monopolize the supply of land for urban construction land.This institutional arrangement gives the local governments the ability to push up house prices,coupled with a fiscal incentive to drive up housing prices,that is the first monopoly of China's urban housing market,which contributed to a high price of monopoly land to some extent.Besides,the regional monopoly of land supply resulted in the regional monopoly of commodity housing development.Moreover,intensive characteristic of capital of the real estate industry itself,making the housing development requires a lot of money,which formed the high barriers to market entry,so that,the monopolistic competition among the major housing developers in urban areas.Therefore,the housing supply could be controlled.This is the second monopoly in China's housing market,resulted in higher prices for new housing.Urban local government have the right to supply housing construction land and control the housing market,its land supply behavior and housing market regulation policy will have a significant impact on the commodity housing market.This paper makes an empirical study on the data of 36 large and medium-sized cities in China by means of combination and classification.Which found that under the condition of housing construction land supply is insufficient,when the housing market demand rapidly rising trend,even increase housing construction land supply cannot bring down the housing price.And it is only when the market demand is more moderate that the supply of housing construction land can effectively reduce the housing price.Therefore,to restrain the rapid rise of commodity housing prices,we need to start from the contradiction between the supply and demand of the housing market.Firstly,to improve the housing construction land supply system,taking the fiscal and taxation system as the breakthrough point,reasonably dividing the "financial power" and "administrative power" between the central and local governments,to weaken the local government's dependence on land finance,which can reduce the local government's monopoly on land supply,so that prompting land supply match the market demand.In the next place,to guarantee the incremental housing supply while encouraging housing stock to enter the market.In addition,to protect reasonable demand,and restrain speculative demand through credit control and tax policy,so as to realize reasonable growth of housing demand.Moreover,measures should be taken to promote the coordinated development between the cities,to promote equalization of the allocation of public resources between cities,and to enhance the development capacity of the central city and its appeal to the population,which will disperse the housing demand of large cities and promote the steady growth of housing prices.