44 research outputs found
Spatial interrelations of Chinese housing markets
This paper comprehensively tests the spatial interrelationships of 10 housing markets in the Pan-Pearl River Delta (Pan-PRD) in China, including the properties of spatial causality, convergence and diffusion p
Spatial Dependence in House Prices: Evidence from China's Interurban Housing Market
"Spatial thinking" is increasingly popular in housing market studies and spatial dependence across properties has been widely investigated in the intra-city housing market. The contribution of this paper is to study the spatial dependence and spillover effect of house prices from an interurban perspective, referring to the spatial interaction across local housing markets. The extensive literature study concludes that following behavior, migration and equity transfer and spatial arbitrage of capital are the main behavioral reasons for interurban spatial interaction. Using a cross-sectional data set in eastern China, our empirical results from both parametric and nonparametric approaches provide strong evidence of spatial interaction in the interurban housing market. The parametric results suggest that the spatial lag model (SAR) is the best model specification to describe the interurban house price process, indicating an endogenous interaction pattern. Ignoring such interaction effect in the house price model will produce biased coefficients estimators and misleading interpretation. In SAR model, Spillover effects of explanatory variables caused by spatial interaction are calculated by partial derivative interpretation approach and are demonstrated to have the magnitude as much as half of their direct effects. Moreover, the comparison between different spatial weighted matrices reveals that the spatial interaction depends not only on distances, but also on the economic situation of each jurisdiction. Meanwhile, nonparametric approach draws a flexible relationship between spatial dependence and geographical distances. Using spline correlogram, we find monotonically declined spatial autocorrelation of house prices and explanatory variables within larger distances, whereas the significant spatial autocorrelation of OLS residuals can only be observed at short distance (60 Km). The spillover effect, being obtained from spatial covariance decomposition, is highly significant and declines within the radius of 250 Km. All the nonparametric results imply that though the house price determinants can satisfyingly account for the interurban house prices, the importance of spillover effect cannot be neglected within certain distances. That is the neighbor's housing market situation is quite useful in predicting the house price of a particular city. This study provides a good insight into explaining why the house prices in some cities always run above the level indicated by fundamentals, and highlights the importance of cooperation between local governments in making the housing policy
Interurban house price gradient
This paper applies a general spatial equilibrium model to investigate the effect that distance within urban hierarchy can have on interurban house prices. Our spatial model predicts a negative price gradient towards higher-tier cities, which can be decomposed into a ’productivity component’ and an ’amenity component’, representing respectively the effect of wage differences and households’ valuation of access to higher-order services. The theoretical findings are tested on data for the hierarchical urban system of the Pan-Yangtze River Delta in China. Both central and subcentral cities are shown to impose statistically significant distance penalties on interurban house prices, even after we control for amenities and characteristics that are generally considered to be the determinants of house prices. According to the empirical decomposition, the negative house price gradients are largely accounted for by the productivity component
Rented Sector Trends in Dutch Housing Policy and the Shifting Position of the Social Trends in Dutch Housing Policy and the Shifting Position of the Social Rented Sector
Summary. The housing system of the Netherlands has acquired an international reputation because of its special nature and the way it has evolved. In this contribution, we explain how the Dutch social rented sector came to have this speci c character. We establish that the position of the social rented sector is strongly in uenced by developments in society at large. In particular, its speci c position may be explained with reference to the emergence and transformation of the Dutch welfare state. In the Netherlands, the development of the social rented sector coincided with the vigorous build-up of the welfare state. That sector continued to grow in the Netherlands for a longer period than in most other west European countries. Ultimately, the share of the Dutch social rented sector reached its highest point-41 per cent of the stock-at the beginning of the 1990s. The current position of the social rented sector in the Netherlands is determined not only by the structure of the Dutch welfare state and the country's distinct housing policy. It is also the result of the shifting balance of supply and demand in the national housing market. Compared with other countries, the particular historical development of the Dutch social rented sector makes the adjustment of the housing system to a more market-orientated policy-in which more attention is devoted to the freedom of choice of the housing consumer-an unprecedented activity to say the least. This process will require the present housing associations to show a large measure of creativity and exibility