Spatial Variation in the Determinants of House Prices and Apartment Rents in China

This paper provides an examination of China’s residential real estate market at the county level using data from that country’s 2000 census. The market is a new one, having only been fully established in 1998. The analysis in the paper is in the form of an aggregate (county-level) hedonic model spec...

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Bibliographic Details
Published in:The journal of real estate finance and economics 2012-08, Vol.45 (2), p.347-363
Main Authors: Hanink, Dean M., Cromley, Robert G., Ebenstein, Avraham Y.
Format: Article
Language:English
Subjects:
Affordable housing
China
Cost prices
Econometric models
Economic models
Economic reform
Economics
Economics and Finance
Error
Financial Services
Geographically weighted regression
Geography
Households
Housing market
Housing prices
Housing subsidies
Investments
Manufacturing
Real estate valuation
Reforms
Regional/Spatial Science
Regression analysis
Space
Studies
Urban areas
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Summary:This paper provides an examination of China’s residential real estate market at the county level using data from that country’s 2000 census. The market is a new one, having only been fully established in 1998. The analysis in the paper is in the form of an aggregate (county-level) hedonic model specified in two versions. Global parameters results are estimated using spatial error model specifications while more local effects are estimated by geographically weighted regression. Global results are typical in that structural characteristics such as floor space and contextual characteristics such as level of in-migration are important in residential prices. Local results, however, indicate significant spatial variation in the effect of both structural amenities and locational context on housing prices. In a simpler specification, rents are shown to respond positively to both median house prices levels and the supply of apartments available at market prices, but also with significant spatial variation across China.
ISSN:0895-5638
1573-045X
DOI:10.1007/s11146-010-9262-3