The Empirical Research Of The Finance Impact Housing Price

In recent years,China’s real estate industry has developed rapidly,which is the one of the pillar industries of the economy.Meanwhile,housing price has been high,and sustained high price makes rural residents to buy a house more difficult and causes a series of problems.What’s more,it has also affected people’s well-being and social harmony,which becomes social hot issue.The causes of rising housing price are diverse,and local governments’ overdependence on land finance is one of the most important reasons.As a hot academic topic,different scholars have different views on it.Based on this background,this article takes theoretical analyses and regression analyses to explore the land financial impact on housing price and regional differences,and then puts forward relevant suggestions.These suggestions benefit the healthy development of the real estate industry,and reduce the excessive dependence of local governments on land finance,which have the dual significance of theory and reality.This paper is divided into five parts,and the contents are as follows:The first part describes the theories of land finance and housing price.This chapter analyzes the connotation of land finance and housing price,and summarizes the theoretical basis of the local government land finance phenomenon,the factors that affect housing price.The second part is about land finance phenomenon and the current situation of housing prices.This chapter expounds the current situation of the government land finance phenomenon in the past 20 years,the rapid development of real estate industry and the steady increase of housing price.In addition,it also analyzes the regional differences in absolute quantity and relative growth rate between land price and housing price.The third part analyzes the internal mechanism of the land finance’s impact on housing price.Tax system reform,competition incentive and land system jointly promote the formation of land finance phenomenon,which finally affects housing price.Coupled with the local governments’ limitation on land supply,commodity housing cost increases further.Meanwhile,the promotion of urbanization,the improvement of per capita disposable income and economic growth also contribute tothe increase of housing demand.The combination of these factors leads to the imbalance of supply and demand of houses,which in turn pushes up the housing price.In theory,the effect of land finance on housing price in different regions is different.In the eastern and central regions,the housing price is more affected by land finance.In addition,the local government restricts the normal supply of land,which increases commercial housing cost.The fourth part analyzes the effect of land finance on housing price.The results show that: At the national level,the land finance has a significant effect on the housing price.And the more obvious the land finance phenomenon,the higher the real estate price will be.At the regional level,the land finance in the eastern region has a more significant impact on housing price,and the impact in central region is second.In addition,the effect in western and northeast regions is not significant.The fifth part puts forward the suggestions.Taking the real estate tax reform as the starting point,the local taxation system should be reformed and perfected,and the property tax should be set up as the new local main tax.Along with clear local government governance,improving the system of transfer payments,reforming the local officials’ evaluation system and changing the way of land transfer are also great choices,which eventually reduce local governments’ dependence on land finance,and promote the healthy development of real estate industry.Compared with the existing literature,this paper is innovative.First of all,in calculation of local government land finance’s scale,the data is more comprehensive,and the analysis results are more realistic.Secondly,in the regression analysis,this paper takes into account China’s vast territory,regional differences in economic development level,and the real estate industry development,so the paper has also carried on the empirical test at regional levels;Finally,in policy part,taking the property tax as the breakthrough point,this paper analyzes the possibility of raising property tax as local subject tax in the local tax,and explores its role in making up local fiscal revenue gap,changing the way the local government get revenue and regulating the housing price,which is feasible and innovative.