Market Interventions: The Impact of Housing Purchase Restrictions Policy on House Prices in China Between 2016-2022

This thesis explores the key role of the purchase restriction policy in China's property market, particularly its far-reaching impact on the property market in regions with different economic and demographic characteristics. With the increasing pressure on the property market, the implementation of the purchase restriction policy is not only an important tool for regulating the market order and curbing the excessive rise in house prices but also provides an important opportunity to achieve market stability. However, the effective implementation of this policy faces many challenges, and its effect will be decisive for the healthy development of China's property market. The extent to which the purchase restriction policy affects housing prices is examined using data from the China Statistical Yearbook and public transaction data from 2016 to 2022 provided by China’s 58. com. The results of the study show that the purchase restriction policies have had a significant negative impact on house prices, effectively curbing speculative demand and suppressing the rapid growth of house prices. The study further finds that there are regional differences in the impact of purchase restriction policy. In East China, a region with a vibrant economy and a high level of urbanization, the purchase restriction policy effectively controlled house prices. In central China, the policies were less effective in curbing house prices, reflecting the fact that the property market in this region is less active relative to the eastern region. Meanwhile, in the western region, where housing demand and market activity are relatively low, the impact of the purchase restriction policy was not significant.