The Characteristics of the Housing Market and the Goal of Stable and Healthy Development in China’s Cities

Guocheng Xiang, Juan Tang () and Shuntian Yao
Additional contact information
Guocheng Xiang: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Juan Tang: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Shuntian Yao: College of Economics and Trade, Hunan University of Technology and Business, Changsha 410205, China

JRFM, 2022, vol. 15, issue 10, 1-17

Abstract: This paper constructs a mathematical model to study China’s urban real estate markets, in which there are different types of demands from house buyers, and housing suppliers adopt the strategy of quality differentiation second-degree price discrimination. Our theoretical result shows that, in China’s case, without government intervention in the housing market, it is almost inevitable that the prices of both housing and the related resources will rocket. To achieve the goal of “houses built for inhabitance”, we put forward a policy scheme to achieve “houses built for inhabitance” in China’s cities from the perspectives of “speculation limitation” and “price control”. We also conduct a numerical analysis to consider the macroeconomic effects of these two policy solutions on the housing market, and we conclude that Chinese authorities should introduce a resale tax in the housing market and learn from Singapore’s experience in housing market regulation.

Keywords: residential demand; speculative demand; quality differentiation; pro-rich; pro-poor (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1911-8074/15/10/450/pdf (application/pdf)
https://www.mdpi.com/1911-8074/15/10/450/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:15:y:2022:i:10:p:450-:d:933324

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().