Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou

Abstract

Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of key primary schools and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.