Land and Residential Property Markets in a Booming Economy: New Evidence from Beijing
35 Pages Posted: 24 Oct 2006
Date Written: October 2006
Beijing's housing market has boomed over the last fifteen years. Its population has grown by 40.6% and per-capita income (in constant RMB) has grown by 273.9% from 1991 to 2005. We study recent patterns in Beijing's free market housing market. Using two geocoded data sets, we present new evidence on the real estate price gradient, land price gradient, population densities and building densities. The classic urban monocentric model's predictions are largely upheld in Beijing. We also document the importance of local public goods such as access to public transit infrastructure, clean air and major universities as important determinants of real estate prices.
Keywords: Beijing, land prices, real estate, pollution, urban form
JEL Classification: R1
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