Analysis and research on the effect of housing price and property tax policy in Chongqing

Keywords: Housing prices, Property tax, Hedonic price model, Differences-in-Differences, Synthetic control method
Abstract Type: Paper Abstract

Abstract

The rationality of the housing price affects the housing market and thus the economic development. This paper uses Hedonic model to study the micro-influencing factors of housing prices, and then introduces the spatial econometric model to make a quantitative analysis of the spatial differences and influencing factors of second-hand housing prices in Chongqing, and obtains the characteristic factors that affect the housing prices in Chongqing, and confirms that there is a spatial agglomeration effect of second-hand housing sales prices in Chongqing. This paper uses difference-in-differences and Synthetic Control Methods to study the annual spatio-temporal panel data of 14 large and medium-sized cities in China from 2008 to 2017, taking Chongqing as the processing group, to explore the impact of the real estate tax policy on the housing price in Chongqing in 2011. The results show that the implementation of property tax has a statistically significant negative effect on residential sales prices in the medium and long term, but it is not obvious in the economic sense.