Abstract
The housing sales market in China has flourished and gained considerable interest, while the housing rental market has lagged behind and been ignored over the past two decades. With the acceleration of urbanization, the housing rental demand is rising rapidly. Exploring and comparing the influencing factors on housing sale prices and rental prices has significance for sustainable urban planning and management. Using house purchase transaction and rent transaction data in 2017, as well as the average housing price and rent data in 2016 in Beijing, China, this paper compares the spatial distribution and it employs the hedonic price model and quantile regression model to quantify the average and distributional effects of micro-level influencing factors on housing prices and housing rents. Results show that housing prices and housing rents both have a decentralized distribution with multiple centers, but rents of residential communities with high housing prices may not necessarily be high. Both homeowners and renters prefer properties with good structural, locational, and neighborhood characteristics, as well as a good school attendance zone, whereas they still differ in terms of preferences. Homeowners prefer a higher-quality living environment. Renters are more concerned with proximity to an employment center and public transit convenience. Moreover, the price premium of school quality for homeowners exceeds the premium for renters. Higher-priced homeowners or renters differ in the preferences from lower-priced homeowners or renters. Higher-priced homeowners and higher-priced renters are more willing to live in property with a larger number of bedrooms, proximity to a major employment center, park, or school, as well as a location in a school attendance zone with higher school quality.
Highlights
The development of a healthy real estate market can indicate the economic conditions of a nation, which is critical to the well-being of the general public, the construction of a harmonious society, and the sustainability of urbanization [1]
School quality can be capitalized into both housing prices and housing rent, but the price premium of school quality for homeowners exceeds the premium for renters
The price premium of school quality for homeowners exceeds the premium for renters, indicating that homeowners are willing to pay for more price premiums of school quality than renters because homeowners have lower expectation for mobility and renters have higher expectation for mobility, which will affect their tenure choice
Summary
The development of a healthy real estate market can indicate the economic conditions of a nation, which is critical to the well-being of the general public, the construction of a harmonious society, and the sustainability of urbanization [1]. Li et al [26] studied the impact of public service capitalization on house prices and rent from the micro level and found considerable differences in the influence of a house’s physical properties on housing sales prices and housing rental prices. This study is different from the majority of existing studies in that we compare and take into account the impact of micro-level influencing factors rather than macroscopic factors, like government policies, across the full distribution of housing prices and housing rent. We compared and investigated the average and distributional impact of micro-level influencing factors across the complete distribution of housing prices and housing rent, and found out the ways that homeowners and renters value each factor.
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