The effect of real estate regulation policy on house price in Beijing city

Abstract

The objectives of this study were to investigate the effect of the real estate regulation policy on house price, and to provide some suggestions in formulating macro-control strategies of real estate industry and reducing house price in Beijing city. Firstly, based on the comprehensive analysis of various influencing factors of house price, the indicators of pressure (P), state(S) and response(R) were all selected. Secondly, the hierarchy analysis method was used to determine the weights of various indicators, then an evaluation system based on the PSR model was built up. Finally, it was applied to evaluating the effect of the real estate regulation policy on house price in Beijing City. The results indicated that house price in Beijing showed a regular fluctuation with the changing period of regulation policies. The house price showed an increasing trend during the encouraging policy period, while displayed a decreasing trend within contracting policy period, which suggests that the house price is very sensitive to the regulation policies. The effect of adjusting land use, tax and indemnificatory apartment on house price were different; the effect of regulating the financial credit policy on house price was obvious, while the effects of land use, tax and indemnificatory apartment policy were indistinct. We also found that the regulation policy has some hysteretic effect and the hysteretic period was about three months. We concluded that it was feasible to apply the system based on PSR model to evaluate the effect of real estate regulation policy on house price in Beijing City. In order to quickly control the high house price, we need to change the adjusting directions and tighten the degree of regulation in land use, tax and indemnificatory apartment policies.