Impact of Policy Promoting Tenant-Owner Right Equality on the Housing Market in Guangzhou

This research studies the impacts of a new policy promoting tenant-owner right equality on the housing market in Guangzhou through a case study of the Tianhe District. Taking datasets of monthly housing prices and rents, as well as residential complex information from 2016 to 2018 within Tianhe District, this research examines the changes in housing prices and rents that resulted from the implementation of the new policy with the use of multiple regression model and Difference-in-Difference (DID) model. The results generated from two multiple regression models show that the reputation of schools and transportation accessibility are two main influencing factors of house sales prices, while building age, transportation accessibility, and sales type are influencing factors of rents. And the results from the DID model suggest that the implementation of the new policy had increased the house sales prices, regardless of the educational reputation, despite it had little impact on the rent level.

This finding is contrary to the government’s expectation of stabilizing housing prices, but could be understood through the findings from 18 interviews with residents in Tianhe District.