Policy change, amenity, and spatiotemporal dynamics of housing prices in Nanjing, China

Abstract

Understanding the spatiotemporal heterogeneity of the housing market is critical for formulating land/housing policies and achieving sustainable urbanization. This study analyzes the housing transactions at the city, community, and apartment levels in Nanjing, focusing on the effects of government policy and amenity. We find that housing prices have appreciated significantly in Chinese cities, and prices also vary within cities. We also find that changes in government policies, especially policies for the development of new urban districts and public facilities, significantly influence the spatiotemporal heterogeneity and dynamics of housing prices. Moreover, high-quality schools provided by governments are evidently exerting an increasing influence on housing values, while proximities to parks, (sub-)CBDs and government service centers also emerge as important factors. We can therefore summarize that housing price variation within Chinese cities is largely institutionally driven, and the Chinese government is the dominant agent of creating uneven urban development in China. We suggest that development policies should consider the need and location of residential areas and improve their access to public facilities to promote intra-urban equality in the housing market.