IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v94y2020ics0264837719310531.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719310531
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104528?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Benavente, José Miguel & Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro, 2012. "The impact of national research funds: A regression discontinuity approach to the Chilean FONDECYT," Research Policy, Elsevier, vol. 41(8), pages 1461-1475.
    2. Guy M. Robinson & Doris A. Carson, 2015. "The globalisation of agriculture: introducing the Handbook," Chapters, in: Guy M. Robinson & Doris A. Carson (ed.), Handbook on the Globalisation of Agriculture, chapter 1, pages 1-28, Edward Elgar Publishing.
    3. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    4. Andrew Gelman & Guido Imbens, 2019. "Why High-Order Polynomials Should Not Be Used in Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 447-456, July.
    5. Liu, Yansui, 2018. "Introduction to land use and rural sustainability in China," Land Use Policy, Elsevier, vol. 74(C), pages 1-4.
    6. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    7. Yi Wu & Yunong Li, 2018. "Impact of government intervention in the housing market: evidence from the housing purchase restriction policy in China," Applied Economics, Taylor & Francis Journals, vol. 50(6), pages 691-705, February.
    8. Weizeng Sun & Siqi Zheng & David M. Geltner & Rui Wang, 2017. "The Housing Market Effects of Local Home Purchase Restrictions: Evidence from Beijing," The Journal of Real Estate Finance and Economics, Springer, vol. 55(3), pages 288-312, October.
    9. Yang, Yuanyuan & Liu, Yansui & Li, Yurui & Li, Jintao, 2018. "Measure of urban-rural transformation in Beijing-Tianjin-Hebei region in the new millennium: Population-land-industry perspective," Land Use Policy, Elsevier, vol. 79(C), pages 595-608.
    10. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    11. Wilbert Van Der Klaauw, 2008. "Regression–Discontinuity Analysis: A Survey of Recent Developments in Economics," LABOUR, CEIS, vol. 22(2), pages 219-245, June.
    12. Eddie Chi-Man Hui & Tony K.K. Lo & Jia Chen & Ziyou Wang, 2012. "Housing and consumer markets in urban China," Construction Management and Economics, Taylor & Francis Journals, vol. 30(2), pages 117-131, December.
    13. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    14. Veblen, Thorstein, 1919. "The Vested Interests and the Common Man," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1919.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steven F. Koch & Jeffrey S. Racine, 2016. "Healthcare facility choice and user fee abolition: regression discontinuity in a multinomial choice setting," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(4), pages 927-950, October.
    2. Arteaga, Irma & Heflin, Colleen & Gable, Sara, 2016. "The impact of aging out of WIC on food security in households with children," Children and Youth Services Review, Elsevier, vol. 69(C), pages 82-96.
    3. Ari Hyytinen & Jaakko Meriläinen & Tuukka Saarimaa & Otto Toivanen & Janne Tukiainen, 2018. "When does regression discontinuity design work? Evidence from random election outcomes," Quantitative Economics, Econometric Society, vol. 9(2), pages 1019-1051, July.
    4. Feng, Andy & Graetz, Georg, 2017. "A question of degree: The effects of degree class on labor market outcomes," Economics of Education Review, Elsevier, vol. 61(C), pages 140-161.
    5. Andrew McEachin & Thurston Domina & Andrew Penner, 2020. "Heterogeneous Effects of Early Algebra across California Middle Schools," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(3), pages 772-800, June.
    6. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    7. Decio Coviello & Andrea Guglielmo & Giancarlo Spagnolo, 2015. "The Effect of Discretion on Procurement Performance," CEIS Research Paper 361, Tor Vergata University, CEIS, revised 17 Nov 2015.
    8. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    9. Porter, Jack & Yu, Ping, 2015. "Regression discontinuity designs with unknown discontinuity points: Testing and estimation," Journal of Econometrics, Elsevier, vol. 189(1), pages 132-147.
    10. Decio Coviello & Andrea Guglielmo & Giancarlo Spagnolo, 2018. "The Effect of Discretion on Procurement Performance," Management Science, INFORMS, vol. 64(2), pages 715-738, February.
    11. Jin-young Choi & Myoung-jae Lee, 2017. "Regression discontinuity: review with extensions," Statistical Papers, Springer, vol. 58(4), pages 1217-1246, December.
    12. Prakash, Nishith & Rockmore, Marc & Uppal, Yogesh, 2019. "Do criminally accused politicians affect economic outcomes? Evidence from India," Journal of Development Economics, Elsevier, vol. 141(C).
    13. Wang, Yadong & Wang, Delu & Shi, Xunpeng, 2022. "Exploring the multidimensional effects of China's coal de-capacity policy: A regression discontinuity design," Resources Policy, Elsevier, vol. 75(C).
    14. Patrick Hullegie & Tobias J. Klein, 2010. "The effect of private health insurance on medical care utilization and self‐assessed health in Germany," Health Economics, John Wiley & Sons, Ltd., vol. 19(9), pages 1048-1062, September.
    15. Timo Hener & Tanya Wilson, 2018. "Marital Age Gaps and Educational Homogamy – Evidence from a Compulsory Schooling Reform in the UK," ifo Working Paper Series 256, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    16. Luciana Juvenal & Paulo Santos Monteiro, 2021. "Risky Gravity," Discussion Papers 21/02, Department of Economics, University of York.
    17. Matias D. Cattaneo & Rocío Titiunik, 2022. "Regression Discontinuity Designs," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 821-851, August.
    18. Geneletti, Sara & Baio, Gianluca & O'Keeffe, Aidan & Ricciardi, Federico, 2019. "Bayesian modelling for binary outcomes in the regression discontinuity design," LSE Research Online Documents on Economics 100096, London School of Economics and Political Science, LSE Library.
    19. Mary Reader, 2021. "The birthweight effects of universal child benefits in pregnancy: quasi-experimental evidence from England and Wales," CASE Papers /222, Centre for Analysis of Social Exclusion, LSE.
    20. Namho Kwon & Hosung Sohn, 2023. "The Effect of Age at First Marriage on Female Fertility: Evidence from Korea’s School Entry Policy Using Exact Date of Birth," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(1), pages 1-30, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719310531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.