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Do Urban Rail Transit Facilities Affect Housing Prices? Evidence from China

Author

Listed:
  • Xu Zhang

    () (School of Economics and Management, Southeast University, Nanjing 211189, China)

  • Xiaoxing Liu

    () (School of Economics and Management, Southeast University, Nanjing 211189, China)

  • Jianqin Hang

    () (School of Economics and Management, Jiangsu Maritime Institute, Nanjing 211170, China)

  • Dengbao Yao

    () (School of Economics and Management, Southeast University, Nanjing 211189, China)

  • Guangping Shi

    () (School of Economics and Management, Southeast University, Nanjing 211189, China)

Abstract

Urban rail transit facilities play a critical role in citizen’s social activities (e.g., residence, work and education). Using panel data on housing prices and urban rail transit facilities for 35 Chinese cities for 2002 to 2013, this study constructs a panel data model to evaluate the effect of rail transit facilities on housing prices quantitatively. A correlation test reveals significant correlations between housing prices and rail transit facilities. Empirical results demonstrate that rail transit facilities can markedly elevate real estate prices. Quantitatively, a 1% increase in rail transit mileage improves housing prices by 0.0233%. The results highlight the importance of other factors (e.g., per capita GDP, land price, investment in real estate and population density) in determining housing prices. We also assess the effects of expectations of new rail transit lines on housing prices, and the results show that expectation effects are insignificant. These findings encourage Chinese policy makers to take rail transit facilities into account in achieving sustainable development of real estate markets.

Suggested Citation

  • Xu Zhang & Xiaoxing Liu & Jianqin Hang & Dengbao Yao & Guangping Shi, 2016. "Do Urban Rail Transit Facilities Affect Housing Prices? Evidence from China," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-14, April.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:4:p:380-:d:68415
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:12:p:2325-:d:122827 is not listed on IDEAS
    2. Yehua Dennis Wei, 2016. "Towards Equitable and Sustainable Urban Space: Introduction to Special Issue on “Urban Land and Sustainable Development”," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-9, August.
    3. repec:gam:jsusta:v:10:y:2018:i:4:p:1293-:d:142587 is not listed on IDEAS
    4. repec:gam:jsusta:v:10:y:2018:i:3:p:593-:d:133452 is not listed on IDEAS
    5. repec:eee:transa:v:105:y:2017:i:c:p:106-122 is not listed on IDEAS
    6. repec:gam:jsusta:v:10:y:2018:i:9:p:3169-:d:167823 is not listed on IDEAS
    7. repec:asi:aeafrj:2017:p:869-881 is not listed on IDEAS

    More about this item

    Keywords

    rail transit; housing price; expectation; panel data;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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