Effects of Urban Land Supply Policy on Real Estate in China: An Econometric Analysis

Abstract

Since 2005, the Chinese government has frequently strengthened controls on the real estate market. Land supply policy was included in the system of state macro-control on the real estate market and state economic development. This paper examines the following issues after analyzing the panel data of Yunnan Province and other provinces of China. (1) Does land supply have significant effects on the real estate market after more than ten years of urban land reforms? (2) Which land supply policy affected the real estate market in China? (3) Does it affect the real estate market and macro-economic control of China's existing land supply policy? The main conclusions of the paper are: (1) Land supply policy has a significant impact on the real estate market with the deepening of China's urban land system reform and the development of the land market. (2) China's land supply policy, as a powerful macro-control tool, has an impact on the real estate market under the government's monopoly. (3) The effects of the land tenure and use reform can mainly be seen in the land supply quota and the extent to which the market-driven supply effects the real estate market.