The impact of local government spending pattern on real estate investment and housing prices in China

Author(s):  
Yang Ji
Author(s):  
Weimin Ma ◽  
Ranran Zhang ◽  
Hua Ke

Over the past decade, the high and rising housing prices in China, which have brought serious problems in people's livelihood, have attracted worldwide attention. The central government has constantly put forward some tight real estate regulation policies, while house prices still have not cooled down and continued to rise. In order to study this phenomenon, we try to analyze using game models: First, considering the simple model without a penalty mechanism, we find that the central and local government both has dominant strategies, and the Nash equilibrium formed is not Pareto optimal of the prisoner's dilemma. Second, a penalty mechanism considering local governments' policy boycott is introduced into mixed game model, trying to analyze the impact of the mechanism on both sides of the game. Interestingly, because of the asymmetry of information, the local would actively implement with the high level of resistance. In the end, the central government's deterrent force is considered into a dynamic mixed game, where exists a bayesian equilibrium. The results show that the central government can achieve the goal of policy by means of improving the efficiency of supervision and reducing the frequency of supervision. Managerial and theoretical implications are discussed.


Societies ◽  
2018 ◽  
Vol 8 (4) ◽  
pp. 93 ◽  
Author(s):  
Ken Chilton ◽  
Robert Silverman ◽  
Rabia Chaudhrey ◽  
Chihaungji Wang

The U.S. Congress authorized the creation of real estate investment trusts (REITs) in 1960 so companies could develop publically traded real estate investment portfolios. REITs focus on commercial property, retail property, and rental property. During the last decade, REITs became more active in regional housing markets across the U.S. Single-family rental (SFR) REITs have grown tremendously, buying up residential properties across the country. In some regional housing markets, SFR REITs own noticeable shares of single-family homes. In those settings, SFR REITs take large numbers of housing units off of real estate markets where homeownership transactions occur and manage these properties as part of commercial rental inventories. This has resulted in a new category of multiple property owners, composed of institutional investors as opposed to individual investors, which further exacerbates property wealth concentration and polarization. This study examines the socio–spatial distribution of properties in SFR REIT portfolios to determine if SFR REIT properties tend to cluster in distinct areas. This study will focus on the regional housing market in Nashville, TN. Nashville has one of the most active SFR REIT sectors in the country. County tax assessor records were used to identify SFR REIT properties. These data were joined with U.S. Census data to create a profile of communities. The data were analyzed using SPSS statistical software and GIS software. Our analysis suggests that neighborhoods with clusters of SFR REITs fit the SFR REIT business model. Clusters occur in communities with newer homes, residents with higher levels of educational attainment, and middle to upper-middle incomes. The paper concludes with several recommendations for future research on SFR REITs.


2011 ◽  
Vol 2011 (Különszám) ◽  
pp. 85-102
Author(s):  
Éva Borszéki ◽  
Klaudia Végh

2018 ◽  
Vol 47 (1) ◽  
pp. 178-213 ◽  
Author(s):  
Shaun A. Bond ◽  
Yu-Jou Pai ◽  
Peng Wang ◽  
Suyan Zheng

2019 ◽  
Vol 14 (04) ◽  
pp. 1950016
Author(s):  
RANJEETA SADHWANI ◽  
SURESH KUMAR OAD RAJPUT ◽  
ASAD ALI-RIND ◽  
MUHAMMAD TAHIR SULEMAN

This study aims to find the impact of change in economic policy uncertainty (EPU) on the returns and volatilities of 11 CRSP Ziman value-weighted US real estate investment trusts (REITs) during 1985–2016. The results indicate that the change in EPU has a positive relationship with volatility and a negative one with the REITs returns. Among EPU components, news-based component has the major impact than the others. Change in economic policy uncertainty has a significant impact on the returns of all the indices except hybrid, healthcare and unclassified REITs after controlling for macroeconomic variables. Whereas, the volatility is mainly explained by its own past values and macroeconomic variables.


2009 ◽  
Vol 59 (1) ◽  
pp. 153-163
Author(s):  
L. M. Farrell

Abstract The results of any analysis of local real estate markets must be qualified interms of the long run equilibrium conditions assumed in the study. Such propertycharacteristics as: non homogeneity, durability, length of response lag time, etc.,are frequently suggested as major factors which contribute to the inefficiency ofreal estate markets. Periods of prolonged exogeneous inflationary expectations,which may be indicated by changes in the Consumer Price Index (CPI), addfurther complexity to the analysis of real estate markets. This paper presents a brief discussion of the factors which influence thesupply and demand for Real Estate. Special reference is made to the City ofTrois-Rivières, Québec, which is analysed over the ten year period 1971 to 1981. In this market the impact of changes in income on long run demand would appearto be negative. The effect of demographic factors, particularly population in the25 to 34 year age group, is not clear. There is some indication of a shift in supplyacross submarkets over the 1976-1979 time period. Price changes, measured in current dollars using the Multiple Listing Service(MLS) average transaction price, increased approximately 200 per cent over arelatively short period in the early 1970s. Most of this appreciation appears tohave been lost over the longer time period of the study. Average MLS transaction price, adjusted for inflation, fluctuated between$12,000 and $28,000 over the same period. After appropriate qualification of the results, in terms of the data and themethodology used to analyse the data, it would appear that housing prices in theaggregated Trois-Rivières market have not increased appreciably in current orconstant dollars over the period 1971-1981 although this may not have been thecase in particular submarkets.


2021 ◽  
Vol 4 (3) ◽  
pp. 73-75
Author(s):  
Ruoke Hu ◽  
Fangke Li

In recent years, due to the rapid development of the real estate industry in China, land speculation has begun in addition to the significant growth in economy. However, this rapid development has led to an extreme rise in housing prices, largely owing to high property tax. This article analyzed the impact of property tax on the development of real estate industry and provided countermeasures.


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