Land Supply and Capitalization of Public Goods in Housing Prices: Evidence from Beijing

19 Pages Posted: 2 Sep 2014

See all articles by Siqi Zheng

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate; Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning; Hang Lung Center for Real Estate, Tsinghua University

Weizeng Sun

Tsinghua University

Rui Wang

University of California, Los Angeles (UCLA)

Date Written: September 2014

Abstract

This paper studies the extent to which spatial heterogeneity in housing prices is affected by housing supply in Beijing's specific context of centralized metropolitan government without local property tax. Taking data sets of residential land leases and private housing sales records from 2006 to 2008 within Beijing's metropolitan area, this paper examines how the capitalization of school quality and subway accessibility in housing prices varies with land availability instrumented by the employment density of state‐owned enterprises (SOEs) at the beginning of SOE reform. Results confirm that the capitalization of school quality and subway accessibility is larger in supply‐constrained locations.

Suggested Citation

Zheng, Siqi and Sun, Weizeng and Wang, Rui, Land Supply and Capitalization of Public Goods in Housing Prices: Evidence from Beijing (September 2014). Journal of Regional Science, Vol. 54, Issue 4, pp. 550-568, 2014, Available at SSRN: https://ssrn.com/abstract=2490198 or http://dx.doi.org/10.1111/jors.12095

Siqi Zheng (Contact Author)

Massachusetts Institute of Technology (MIT) - Center for Real Estate ( email )

Building 9-323
Cambridge, MA 02139
United States

HOME PAGE: http://https://siqizheng.mit.edu/

Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://https://siqizheng.mit.edu/

Weizeng Sun

Tsinghua University ( email )

No Address Available

Rui Wang

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

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