2010 ~ 2011 Shanghai Housing Market Regulation And Control Of The Property Tax, Such As Restrictions On Policy Thinking

The paper aims to research the influence of Shanghai real estate control policies in real estate tax and the purchase limits on the Shanghai residential market during2010and2011, as well as the solutions and suggestions of Shanghai residential market problem.Through Shanghai housing price bubble analysis and comparison with the national housing price, we conclude that the geographical imbalanced development and unfair distribution of income are deep factors which caused the housing problem in Shanghai.Through the analysis of the causes of Shanghai’s fast increasing housing prices, the basic demand and supply status of the residential market and easy monetary policy environment caused housing prices rose too fast. Among them, the resident population, land prices, money supply, interest rates and other factors on the Shanghai housing prices was significant.The property tax is an important means to solve the problem of the residential market, and can play a role on supply, demand and income distribution. But in the pilot phase there are many problems, such as taxes nature exists a dispute, the scope of the collection does not involve stock of housing, not enough differentiation between the rigid demand and speculative demand, leading to the residential rental market prices rose too fast, resulting in the regulation effect is not ideal. Property taxes can play a real role in the regulation depends on the Government’s ability to further its legislation, the collection process, and many other aspects to improve and perfect.Purchase limits can play an immediate effect on the control speculative demand in the short term, but in the long run, it does not solve the fundamental problem of supply and demand and easy monetary policy environment. It is contrary to the laws of economic operation. On the one hand, it caused the rigid demand high-end development, investment demand flowing toward consumption and other areas, raising the consumer price index. On the other hand, the market downturn and the supply further decline exacerbating the imbalance between supply and demand, dragging on GDP growth, and dozens of related industries. As a result, the paper argues that in the long run the purchase limits policy is invalid and would lead to a rebound in the market. The fundamental approach to solve the housing problem in Shanghai is the balanced development between the geographical, to reduce the Shanghai population and resource pressures; to change the pattern of land finance, to increase land supply to lower the price of land; stable money supply, market-oriented interest rate; increasing the proportion of household income in total income, narrowing the gap between the rich and the poor; improve the real estate tax system,; widen the investment channels, increase government spending.