Unleashing the real estate market: assessing the impact of relaxed housing purchase restriction policy on house prices in China

This study examines the effects of the relaxed housing purchase restriction (RHPR) policy on house prices in China, using panel data from 41 cities between January 2021 and June 2022. The study finds that the RHPR policy has a positive effect on the existing housing market, contributing to its stabilization. However, the impact on new house prices is unclear. Mechanism analysis indicates that the policy effectively boosts house demand and fosters positive market expectations. The study also finds that the policy has a greater impact on second-tier and northern cities. Additionally, the research indicates that the policy has stimulated house demand among non-registered populations and in non-restricted purchase zones. These results emphasize the importance of timely adjustment and optimization of real estate policies to maintain a stable and sustainable market.