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Spatial Spillover of House Prices: An Empirical Study of the Yangtze Delta Urban Agglomeration in China

Author

Listed:
  • Ling Zhang

    (Department of Civil Engineering, Center of Real Estate Study, Zhejiang University, Hangzhou 310058, China)

  • He Wang

    (Department of Civil Engineering, Center of Real Estate Study, Zhejiang University, Hangzhou 310058, China)

  • Yan Song

    (Department of city and regional planning, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA)

  • Haizhen Wen

    (Department of Civil Engineering, Center of Real Estate Study, Zhejiang University, Hangzhou 310058, China)

Abstract

This study investigates the spatial dependence of house prices in the Yangtze Delta Urban Agglomeration since the year 2000. According to Moran’s I index and the LISA scatter plot derived from a cross-section data set, the spatial dependence of house prices can be traced across the 25 cities in the agglomeration and became more evident after 2005. This study develops a spatial panel model with geographical distance and economic distance weight matrices. Spatial effects significantly influenced house prices in both cases but the intensity of the former was weaker than for the latter. Income, proportion of the tertiary industry, and amenity exhibited significant indirect effects on house prices in other cities in the inner region of the agglomeration, while competition of population between cities with economic proximity exerted negative indirect effects. Furthermore, urban industrial structure, innovation capability, and urbanization degree revealed differences in terms of spatial dependence among various city groups.

Suggested Citation

  • Ling Zhang & He Wang & Yan Song & Haizhen Wen, 2019. "Spatial Spillover of House Prices: An Empirical Study of the Yangtze Delta Urban Agglomeration in China," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:2:p:544-:d:199484
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    Cited by:

    1. Hanli Chen & Yu Zhang & Ningxin Zhang & Man Zhou & Heping Ding, 2022. "Analysis on the Spatial Effect of Infrastructure Development on the Real Estate Price in the Yangtze River Delta," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    2. Wei Hu & Shanggang Yin & Haibo Gong, 2022. "Spatial–Temporal Evolution Patterns and Influencing Factors of China’s Urban Housing Price-to-Income Ratio," Land, MDPI, vol. 11(12), pages 1-15, December.
    3. Xiaoguang Liu & Jian Yu & Tsun Se Cheong & Michal Wojewodzki, 2022. "The Future Evolution of Housing Price-to-Income Ratio in 171 Chinese Cities," Annals of Economics and Finance, Society for AEF, vol. 23(1), pages 159-196, May.
    4. Guancen Wu & Jing Li & Dan Chong & Xing Niu, 2021. "Analysis on the Housing Price Relationship Network of Large and Medium-Sized Cities in China Based on Gravity Model," Sustainability, MDPI, vol. 13(7), pages 1-20, April.
    5. Jeffrey P. Cohen & Cletus C. Coughlin & Daniel Soques, 2019. "House Price Growth Interdependencies and Comovement," Working Papers 2019-028, Federal Reserve Bank of St. Louis, revised 11 Jan 2021.

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