The government is in charge of coming up with policies that can help protect various economy sectors. Whatever policies they come with, they can contribute to the economy’s growth and ensure consumers and sellers get protection from exploitation.
The government also ensures they regulate monopoly power among various industries, and can also handle any disaster that leads to the destruction of the economy, such as the current Covid pandemic. Governments also interfere with the market.
The market is the most vital part of a healthy economy. The government will intervene in the market to address any inefficiency and allocate various resources to groups that most need them.
The real estate market is no exception. Governments aim at reviewing specific laws, taxation policies, rent control, zoning, and subsidies. Besides, the government also issues a license and controls transaction costs of selling and buying property via PropertyGuru largest property portal.
Such intervention by the government can help control the market price index of different regions. By controlling how house prices increase or decrease, one can predict future prices of homes. A market price index helps measure real estate investment results and is used to make real estate decisions.
However, for the government to intervene in real estate, they have to note a significant impact of market price index in various regions.
If you’re interested in this phenomenon, please take a look at the following infographic. It shows the latest research into government intervention in real estate. The infographic makes it easy to understand this concept and provides insight into the market price index in real estate. Check it out below.
Infographic designed by PropertyGuru largest property portal