Impact Of County-to-district Reform On House Price

The adjustment of the administrative area of “County-to-District” is a comprehensive reconstruction of the government management structure,economic market,industrial population,and spatial geography.This will inevitably have a wide impact on urban land supply,public service improvement,and urbanization.These are all important factors affecting the supply and demand relationship in the urban commercial housing market.Therefore,under the realistic background of the rapid rise of urban commercial housing prices in China,in order to further improve the research on the factors affecting the fluctuation of commercial housing prices and to comprehensively evaluate the effect of the reform of “County-to-District”,this article focuses on the impact of County-to-District Reform on house’s market,and explored the total effect,intermediate mechanism and regional heterogeneity of its impact on the price of urban commercial housing.This article analyzes the nature of the reform of "County-to-District" and its practice in China in detail,and finds that the reform of "County-to-District" in China has a clear "U" shape in both time and space.Then,by analyzing the possible impact of the "County-toDistrict" on the city’s commercial housing market,we found that the "County-to-District" reform will increase the supply of urban commercial and residential land through urban expansion and the change in the nature of the land market.To a certain extent,it will curb the rise in the prices of urban commercial housing;In addition,the reform of "County-toDistrict" will also stimulate the demand for urban commercial housing by promoting the public service levels and accelerating the process of urbanization.The effect of rising urban commodity housing prices.And then it will weaken the effect of restraining urban commodity housing prices.After theoretical analysis,this paper uses the data of 286 prefecture-level cities in China from 2000 to 2017,and uses the PSM-DID method to examine the total effect of the "County-to-District" reform on urban commodity housing prices.The test results show that:(1)the reform of "County-to-District" will significantly inhibit the rise of urban commodity housing prices;(2)the reform of "County-to-District" will suppress the increase of urban commercial housing prices by stimulating the increase in the supply of commercial and residential land in cities.At the same time,it will weaken its restraining effect on the rise of commercial housing prices by promoting the improvement of public service levels.(3)The restraint effect of the "County-to-District" reform on the price of urban commercial house has showed significant regional heterogeneity,which is significant in eastern and central cities but not significant in western cities.Based on the results of theoretical inquiry and empirical testing,three policy suggestions are proposed:(1)When the government regulates the city’s house prices,it must reasonably evaluate the effect of "County-to-District" reform,which may itself suppress the price of urban commercial housing markets.(2)In the east,cities which had implemented the "County-to-District" reform,need to estimate the restraining effect of the "County-toDistrict" reform on the rise of urban commodity housing prices,when the government regulating housing prices.(3)The government can curb the rising of the urban commercial housing price by modestly increasing the supply of commercial and residential land.At the same time,when improving the level of public services in a certain area,the government should formulate suitable measures to control the rapidly rising of housing prices.