The Spillover Effect of Urban Village Removal On Nearby Home Values in Beijing

Posted: 11 Nov 2019

See all articles by Yingjie Zhang

Yingjie Zhang

affiliation not provided to SSRN

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

Yan Song

University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning

Yongguang Zhong

Qingdao University

Date Written: July 13, 2015

Abstract

An urban village is a typical type of informal housing settlement in which rural migrants stay in Chinese cities. As urban villages are being woven into modern urban landscapes, we estimate the size of their negative externality and also the positive spillover effect of their removal on nearby formal housing communities. We employ two micro data sets: one includes all the existing urban villages in 2006 and a unique micro survey of 50 villages conducted in 2008, and the other contains 24,000 micro resale records in the formal housing sector from 2006 to 2011. Our findings show that an average urban village causes a 2.5 percent housing price discount in nearby communities, and the removal of this urban village triggers a 3.3–4.3 percent housing price appreciation. However, more careful consideration is needed for the other side of the coin — the welfare change of those rural migrants who are displaced during this process.

Suggested Citation

Zhang, Yingjie and Zheng, Siqi and Song, Yan and Zhong, Yongguang, The Spillover Effect of Urban Village Removal On Nearby Home Values in Beijing (July 13, 2015). Available at SSRN: https://ssrn.com/abstract=2630406

Yingjie Zhang

affiliation not provided to SSRN

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/

Yan Song

University of North Carolina (UNC) at Chapel Hill - Department of City and Regional Planning ( email )

New East Building
Chapel Hill, NC 27599-3140
United States

Yongguang Zhong

Qingdao University ( email )

No. 308 Ning Xia Road
Qingdao, 266071
China

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