Analysis on the Effect of “EqualRight to Rent and Purchase” Policy Implementation in China

Abstract

The protection of housing and related basic public services is a fundamental issue that concerns people’s security of tenure. If there is a mismatch between the right to rent and the right to housing, it will inevitably affect the relevant interests of the rental group. This paper analyzes the impact of the implementation of the “equal rights to rent and purchase” policy on the real estate sales market and rental market in China. Taking the policy of “equal rights to rent and purchase” implemented in Guangzhou on July 17, 2017 as the cut-off point, this paper analyzes the second-hand housing market and the rental market in Guangzhou by using the method of differences-in-differences (DID) . The conclusion shows that the implementation of “equal rights to rent and purchase“ policy has no significant impact on the housing price of secondhand housing market in Guangzhou, but it can a dampening effect by reducing the growth rate of housing price of school district, and play a certain inhibitory role. At the same time, the policy has no significant impact on the housing rental market. This paper argues that the policy of “equal rights for rent and purchase” should be implemented refined in the future, in an attempt to give the same rights to public goods and services to the home buyers and renters, as a means of promoting the fair and harmonious development of society. Taking “school district housing” as an example, it can slow down the continuous growth of housing prices in areas related to school district housing, which is conducive to the healthy development of the real estate market.