Impact Factors of Spatial Differentiation of Housing Prices in China's Cities

Abstract

In order to explore the main driving factors of housing prices in China, we used the data of housing prices in China's 116 cities, and analyzed the impact of 3 factors including housing demand, supply and cost on housing prices based on the method of Gray Relational Degree. The results show that: The land price has the most evident driving effect on the housing price differentiations in China's cities; the driving effects from population aggregation and residential land supply are also very remarkable; the supply-demand theory and cost theory could be adopted simultaneously in explaining the housing price differentiation phenomenon in China.

Land finance, infrastructure investment and housing prices in China

“…As a result, land revenue plays an increasingly important role in local expenditures. Some studies have noted that land finance can be used to improve or upgrade infrastructure [ 15 ]. Relatively little research has focused on the link between land finance and infrastructure development and how land finance can finance urban infrastructure development [ 46 ].…”

“…Several studies have analyzed infrastructure as a prerequisite for obtaining finance for land sale [ 14 ]. Some studies suggest that local governments can reap the rewards of land finance [ 15 ]. Although a large body of literature has empirically examined the direct or indirect role of infrastructure in promoting local economies [ 16 ], the causal relationships among land finance, infrastructure investment and housing prices are still unclear.…”