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Urban villages and housing values in China

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  • Song, Yan
  • Zenou, Yves

Abstract

The presence of urban villages is a unique product of China's urbanization. In this article, we explore the effects of urban villages on the formal housing market. For this purpose, we develop a hedonic housing price model to investigate whether the proximity to urban villages affects the selling price of urban housing units. Controlling for the structure and other characteristics of urban housing units, we find that housing prices are lower the closer the buildings are from urban villages. We then carry out a survey of households living nearby and explore how they are affected by urban villages. The results indicate that there are both positive and negative effects associated with these villages.

Suggested Citation

  • Song, Yan & Zenou, Yves, 2012. "Urban villages and housing values in China," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 495-505.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:3:p:495-505
    DOI: 10.1016/j.regsciurbeco.2011.06.003
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    References listed on IDEAS

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    Cited by:

    1. Yao-Yu Chih, 2018. "Status competition and benevolence in social networks," Oxford Economic Papers, Oxford University Press, vol. 70(1), pages 141-162.
    2. Jipeng Zhang & Jianyong Fan & Jiawei Mo, 2017. "Government Intervention, Land Market, And Urban Development: Evidence From Chinese Cities," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 115-136, January.
    3. Jing Qian & Yunfei Peng & Cheng Luo & Chao Wu & Qingyun Du, 2015. "Urban Land Expansion and Sustainable Land Use Policy in Shenzhen: A Case Study of China’s Rapid Urbanization," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-16, December.
    4. Jinkun Yang & Eddie C. M. Hui & Wei Lang & Xun Li, 2018. "Land Ownership, Rent-Seeking, and Rural Gentrification: Reconstructing Villages for Sustainable Urbanization in China," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-17, June.
    5. Haizhen Wen & Zaiyuan Gui & Chuanhao Tian & Yue Xiao & Li Fang, 2018. "Subway Opening, Traffic Accessibility, and Housing Prices: A Quantile Hedonic Analysis in Hangzhou, China," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-23, June.
    6. Yingjie Zhang & Siqi Zheng & Yan Song & Yongguang Zhong, 2016. "The Spillover Effect of Urban Village Removal on Nearby Home Values in Beijing," Growth and Change, Wiley Blackwell, vol. 47(1), pages 9-31, March.
    7. Chuanwang Sun & Xiaochun Meng & Shuijun Peng, 2017. "Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-18, March.
    8. repec:gam:jsusta:v:8:y:2015:i:1:p:16:d:61206 is not listed on IDEAS
    9. He, Xiaobo & Sim, Nicholas C.S., 2015. "Does economic growth affect urbanization? New evidence from China and the Chinese National Congress," Journal of Asian Economics, Elsevier, vol. 36(C), pages 62-71.
    10. Touseef Hussain & Jaffar Abbas & Zou Wei & Mohammad Nurunnabi, 2019. "The Effect of Sustainable Urban Planning and Slum Disamenity on The Value of Neighboring Residential Property: Application of The Hedonic Pricing Model in Rent Price Appraisal," Sustainability, MDPI, Open Access Journal, vol. 11(4), pages 1-20, February.

    More about this item

    Keywords

    Hedonic prices; Urban villages; Housing price externalities; China;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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