Economist: now the central government considers the performance of local governments according to the indicators of GDP. A lot of money is needed to improve local GDP. Under the current system, local governments can raise a lot of funds only through the transfer of land. If you want to auction land at a high price, the house price must be high
the local government has a strong incentive to push up the house price. However, the central government has introduced a series of measures to stabilize house prices, and if local governments still push up prices vigorously, they may be punished by the central government.
Under the current system, if local governments lower house prices, they will not be punished by the central government.