Abstract
In China, the housing rent can clearly reveal the actual utility value of a house due to its low capital premium. However, few studies have examined the spatial variability of housing rent. Accordingly, this study attempted to determine the utility value of houses based on housing rent data. In this study, we applied mixed geographically weighted regression (MGWR) to explore the residential rent in Nanjing, the largest city in Jiangsu Province. The results show that the distribution of residential rent has a multi-center group pattern. Commercial centers, primary and middle schools, campuses, subways, expressways, and railways are the most significant influencing factors of residential rent in Nanjing, and each factor has its own unique characteristics of spatial differentiation. In addition, the MGWR has a better fit with housing rent than geographically weighted regression (GWR). These research results provide a scientific basis for local real estate management and urban planning departments.
Highlights
Nanjing is a megacity in Jiangsu province, which has comprehensive and high-quality educational and medical facilities
mixed geographically weighted regression (MGWR) results were compared with the traditional ordinary least square (OLS) model and the geographically weighted regression (GWR) model
The MGWR model was better than the OLS model and the GWR model in its fitting effect
Summary
Nanjing is a megacity in Jiangsu province, which has comprehensive and high-quality educational and medical facilities. The population of Nanjing is growing rapidly. Due to this growth, Nanjing has suffered greatly from the problem of high housing prices in recent years. In 2006, the average housing price in Nanjing was only 5304 CNY/m2 (7498 USD/ft2) [1]. In 2018, this value increased to 30,212 CNY/m2 (47,299 USD/ft2), while the average housing price in China is only 8736 CNY/m2 (13,677 USD/ft2) [2]. The average housing rent has increased 3.01% per year from 2006 to 2018. This rate approximately equals China’s 1-year bond yield (risk free rate) [3]. The average housing rent in Nanjing has maintained a stable level in recent years. Instead, housing rent, which has escaped the capital bubble, is better able to reflect the utility value of residential houses
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