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Effect of the housing purchase restriction policy on the Real Estate Market: Evidence from a typical suburb of Beijing, China

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  • Li, Yaoyao
  • Zhu, Daolin
  • Zhao, Jiangmeng
  • Zheng, Xiaodong
  • Zhang, Lanyue

Abstract

To curb excessive rises in housing prices, the government has instituted a series of macro-control measures in the real estate market. The housing purchase restriction (HPR) policy, one of the most severe policies, aims to curb a rapid rise in housing prices by excluding investment demand for housing. The real estate market of Langfang City was a particularly pertinent case because it is adjacent to Beijing, the capital of China. This study collected 11,597 sets of second-hand housing transaction data from five counties around Beijing in Langfang. A regression discontinuity design was then used to indicate that the HPR policy of Langfang did not significantly reduce the price of second-hand houses in the study area. In addition, the effect of the HPR policy on housing prices had an obvious spatial heterogeneity. Within 500 m of the buffer zone around Beijing, the implementation of the HPR policy significantly increased the price by 8.07 %. Within 1000 m of the buffer zone, the implementation of the policy increased the price by an average of 6.70 %. Although the HPR policy played a role in reducing the price further than 1000 m, it was not robust. Finally, the paper highlighted that the policy makers should pay attention to the heterogeneity and connection of different cities, balance the relationship between multiple stakeholders, and improve and implement relevant systems, including a real estate tax regime and land spatial planning regime.

Suggested Citation

  • Li, Yaoyao & Zhu, Daolin & Zhao, Jiangmeng & Zheng, Xiaodong & Zhang, Lanyue, 2020. "Effect of the housing purchase restriction policy on the Real Estate Market: Evidence from a typical suburb of Beijing, China," Land Use Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719310531
    DOI: 10.1016/j.landusepol.2020.104528
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    References listed on IDEAS

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    1. Kauskale Linda & Zvirgzdins Janis & Geipele Ineta, 2022. "The Real Estate Market and its Influencing Factors for Sustainable Real Estate Development: A Case of Latvia," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 10(1), pages 171-199, January.
    2. Ching-Hsue Cheng & Ming-Chi Tsai, 2022. "An Intelligent Homogeneous Model Based on an Enhanced Weighted Kernel Self-Organizing Map for Forecasting House Prices," Land, MDPI, vol. 11(8), pages 1-17, July.
    3. Yu, Qing & Hui, Eddie Chi-Man & Shen, Jianfu, 2023. "Do local governments capitalise on the spillover effect in the housing market? Quasi-experimental evidence from house purchase restrictions in China," Land Use Policy, Elsevier, vol. 133(C).
    4. Yanke Dai & Yangfei Xu, 2022. "Cheating under Regulation: Evidence from “Yin-and-Yang” Contracts on Beijing’s Housing Market," Sustainability, MDPI, vol. 14(20), pages 1-29, October.
    5. He Gao & Walter Timo de Vries & Minrui Zheng & Jianping Ye, 2023. "State Capacity to Influence Actor Relations within the Chinese Real Estate Market: An Analytical Framework," Land, MDPI, vol. 12(8), pages 1-18, August.
    6. Yii, Kwang-Jing & Tan, Chai-Thing & Ho, Wing-Ken & Kwan, Xiao-Hui & Nerissa, Feng-Ting Shim & Tan, Yan-Yi & Wong, Kar-Horn, 2022. "Land availability and housing price in China: Empirical evidence from nonlinear autoregressive distributed lag (NARDL)," Land Use Policy, Elsevier, vol. 113(C).
    7. Zheng, Xian & Chen, Xingtao & Yuan, Ziqing, 2021. "Exploring the spatial spillover effect of home purchase restrictions on residential land prices based on the difference-in-differences approach: Evidence from 195 Chinese cities," Land Use Policy, Elsevier, vol. 102(C).
    8. Huayan Weng & Yongchao Gao & Xinyi Su & Xiaodong Yang & Fangyan Cheng & Renfeng Ma & Yanju Liu & Wen Zhang & Liwen Zheng, 2021. "Spatial-Temporal Changes and Driving Force Analysis of Green Space in Coastal Cities of Southeast China over the Past 20 Years," Land, MDPI, vol. 10(5), pages 1-18, May.
    9. Taiyi Zang & Hongmei Gu, 2023. "State-Space Modeling of Housing Sentiment for Regressing Changes of Real Estate Prices Following Short-Term Control Policy in China," Sustainability, MDPI, vol. 15(16), pages 1-19, August.

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