Study On The Efficiency Of Real Estate Investment Under Land Finance In China

Land finance is a unique situation in China.Land finance is closely related to land supply in the real estate market.However,few literatures study the real estate market from the perspective of land finance,and the existing literatures mainly study the scale of real estate investment,and pay little attention to the efficiency of investment.This study enriches the relevant theoretical system and provides policy recommendations for real estate investment regulation.This paper holds that land finance mainly affects the efficiency of real estate investment in three aspects: first,land finance squeezes private investment in real estate industry,which makes the ratio of public investment to private investment deviate from the optimal ratio structure;second,over-investment by local governments under land finance results in diminishing marginal benefits of real estate investment;third,economic land use has been significantly increased by local governments under land finance.Reduce the use of public facilities land,resulting in poor urban planning,land use rate reduced.Taking the data of 30 provinces,municipalities and autonomous regions in China from 2004 to 2016 as samples,this paper uses Malmquist-DEA method to measure the efficiency of real estate investment in China,and uses land finance data to regression.The main findings are as follows: Firstly,the efficiency of real estate investment in China is generally rising from 2005 to 2016,and the average TFP index of real estate investment efficiency in 30 provinces in the past 12 years is as follows: 1.017,or 1.7% per year.However,there are great differences in different regions;secondly,through regression analysis,it is found that there is a restraining effect of Land Finance on the efficiency of real estate investment in China as a whole.Specifically,when other conditions remain unchanged,the efficiency of real estate investment will be reduced by 6.4% for every doubling of land transfer funds;lastly,the efficiency of real estate investment will be restrained by land finance in the whole country.Through verification,it is found that the three influence mechanisms all play a role in the national sample group,but in the three regions,the influence channels are different.It is suggested that we should attach importance to the role of non-quantifiable soft indicators in the performance appraisal,encourage local government officials to do more "predecessors planting trees" policy measures,treat local government investmentbehavior more prudently,and establish a long-term accountability mechanism for large-scale investment projects.Different regions should take appropriate measures to improve the efficiency of real estate investment and reduce financial policy intervention in the real estate market.