An Analysis of Chinas Housing Purchase Situation Based on Real Estate Policies

Abstract

Because of some new policies in China, the government has begun to lower house prices and encourage people to buy more houses, at least in Anhui. However, the reduced housing prices have not led to an increase in residential housing sales. So the author analyzes the reasons for the current insufficient purchasing power of Chinese residents' housing based on existing literature and data. The result shows that, in the context of contemporary society, personal income levels have significantly decreased. This decline is influenced by various factors, including tax policy reforms and the profound impact of the COVID-19 pandemic on the global economy, including China. At the same time, the hedging ability of the real estate industry has also decreased, which hinders the improvement of personal purchasing power. Although the real estate market has shown strong risk resistance and has gradually recovered from the initial impact of the epidemic, the lingering impact and uncertainty still affect individual purchasing power.