Region-Specific Estimates of the Determinants of Residential Investment

This paper adopts a reduced-form equilibrium model to investigate the possible sources of residential investment differentials among 22 provinces, five autonomous regions, and four municipalities in the People’s Republic of China. The model is estimated using panel data from 31 Chinese regions durin...

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Bibliographic Details
Published in:Journal of urban planning and development 2011-03, Vol.137 (1), p.1-6
Main Authors: Choy, Lennon H. T, Ho, Winky K. O, Mak, Stephen W. K
Format: Article
Language:English
Subjects:
Applied sciences
Autonomous
Building economics. Cost
Buildings
Buildings. Public works
Determinants
Differentials
Exact sciences and technology
Financing
Investment
Markets
Panels
Residential
Residential building
TECHNICAL PAPERS
Types of buildings
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Summary:This paper adopts a reduced-form equilibrium model to investigate the possible sources of residential investment differentials among 22 provinces, five autonomous regions, and four municipalities in the People’s Republic of China. The model is estimated using panel data from 31 Chinese regions during the period between 2001 and 2006, yielding a total of 186 observations. Empirical results should hopefully shed light on the adjustment mechanism of the Chinese residential-property market. Specifically, this paper suggests that change in population, income, and business confidence are the major determinants that cause residential investment to vary among different regions. The relatively small coefficients of real interest rates and planning regulations suggest that they have significant but modest impacts on residential investment.
ISSN:0733-9488
1943-5444
DOI:10.1061/(ASCE)UP.1943-5444.0000030