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

Posted: 25 Aug 2012

See all articles by Dean M. Hanink

Dean M. Hanink

University of Connecticut - Department of Geography

Robert G. Cromley

affiliation not provided to SSRN

Avraham Y. Ebenstein

Harvard University; University of California, Berkeley - Department of Economics

Date Written: 2012

Abstract

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.

Keywords: Housing market, China, Hedonic model, Geographically weighted regression, Spatial regression

Suggested Citation

Hanink, Dean M. and Cromley, Robert G. and Ebenstein, Avraham Y., Spatial Variation in the Determinants of House Prices and Apartment Rents in China (2012). Journal of Real Estate Finance and Economics, Vol. 45, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=2135043

Dean M. Hanink

University of Connecticut - Department of Geography ( email )

Austin Building, rm 422
215 Glenbrook Road, U-4148
Storrs, CT 06269-2148
United States
860-486-3450 (Phone)
860-486-1348 (Fax)

Robert G. Cromley (Contact Author)

affiliation not provided to SSRN ( email )

Avraham Y. Ebenstein

Harvard University ( email )

1730 Cambridge Street, S408
Cambridge, MA 02138
United States

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

HOME PAGE: http://www.demog.berkeley.edu/~ebenstei

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