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Government building relocations and house prices: Evidence from Shanghai, China

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  • Wang, Qingyu
  • Qin, Wanqin
  • Li, Man
  • Xu, Guangwei

Abstract

This study investigates the effects of government building relocations on housing prices and the underlying mechanisms, using 58,321 housing transaction records from Shanghai, China, spanning 2011 to 2024. We employ a static difference-in-differences design to estimate the impact of government office relocations on local property values, comparing housing prices within 500 meters of the sites to a control group located 500–1,000 meters away. Our results show that government building relocations lead to a 1–3% price increase relative to nearby control communities. Moreover, relocations involving higher-level government buildings are associated with even larger price effects. In the mechanism analysis, we find that the Baidu Search Index for nearby communities increases significantly following the relocation. This pattern reflects not merely a one-time information update but rather a persistent reputation effect associated with government buildings. The results remain robust across multiple robustness checks.

Suggested Citation

  • Wang, Qingyu & Qin, Wanqin & Li, Man & Xu, Guangwei, 2026. "Government building relocations and house prices: Evidence from Shanghai, China," Economic Analysis and Policy, Elsevier, vol. 91(C), pages 603-617.
    • Handle: RePEc:eee:ecanpo:v:91:y:2026:i:c:p:603-617
    DOI: 10.1016/j.eap.2026.02.028
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