Spatial Dynamics of the Chinese High Speed Rail: Impact Assessment on Real Estate Price
23 Pages Posted: 3 Dec 2014
Date Written: December 1, 2014
This study investigates the ex post impact of the Beijing-Shanghai high speed rail (BJHSR) on housing values. A dataset including 1,016 housing communities from the 22 cities along the BJHSR line are analyzed in the tradition of the hedonic pricing model using three estimation procedures: a robust ordinary-least square regression, a Box-Cox transformation technique and a spatial econometric model. After controlling for physical characteristics of housing property, neighboring environment and locational accessibility, the study finds that the establishment of the BJHSR service has a considerable regional impact (including local effects and spillover effects) on housing values in medium and small cities but a negligible impact in larger capital cities. This may be the results of the competitive nature of housing market in Chinese capital cities.
Keywords: High speed rail; China; Hedonic pricing model; Box-Cox transformation; Spatial econometrics
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