| dc.description.abstract | This paper aims to analyze the effects of the specifically selected goods and services tax levy with regards to regional house prices. Using the housing market transaction prices of; Taoyuan, Zhongli, Pingzhen in 2008 – 2013 for test analysis with empirical model.
This article first analyzes the environment, geography, economic conditions, prices and other information of the area, then setting up dummy variable for the specifically goods and services tax levy. While comparing the variables between residential area and price in order to observe its effects and to explore the differences between the three regions.
After the introduction of this regulation as indicated by the findings; housing prices are still trending towards positive growth, increased turnover, and high prices. Based on the law of supply and demand theory; implementation of this regulation will lower the supply of housing resulting in the blocking effect. Moreover, the long-term low interest rates, domestic monetary easing and tax laws may not be perfect causing difficulty to obtain short-term improvement.
Considering that Taoyuan is one of the areas close by the Taipei metropolitan it is in an optimal position to reap the benefits from an influx of investments. Given soaring prices of both Taipei and New Taipei areas as well as the central banks loans and related financial restrictive credit measures, investors have been redirecting their focus towards Taoyuan. In recent years, Taoyuan has also been committed to their efforts in promoting the city by pushing their transportation and tourism industries making them the most promising city in the north of Taiwan.
Even with the specifically selected goods and services tax levy, housing prices in Taoyuan, Zhongli, and Pingzhen area can not be effectively suppressed, and will con-tinue to rise.
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