:This paper studies the effect of property tax on the residential real estate market , considering the strategic behavior of consumers , investors and real estate developers. Based on a simulation model , we analyze the different effects of property tax and exercise taxes on the behavior of consumers and real estate developers. We obtain the market equilibrium price and quantity in our model. This paper shows that property tax plays a more important role than any other taxes on housing price control. In addition , exercise tax on sale plays a bet ter role than exercise tax on rent. However , exercise taxes can only be considered as a temporary policy for housing price control. For the long run social welfare , given the underlying market condition , policy maker should consider property tax with necessary supporting measures in order to meet the corresponding basic resi dential demand.