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Urban villages and housing values in China

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  • Song, Yan
  • Zenou, Yves

Abstract

The presence of urban villages is a unique product of China's urbanization. In this article, we explore the effects of urban villages on the formal housing market. For this purpose, we develop a hedonic housing price model to investigate whether the proximity to urban villages affects the selling price of urban housing units. Controlling for the structure and other characteristics of urban housing units, we find that housing prices are lower the closer the buildings are from urban villages. We then carry out a survey of households living nearby and explore how they are affected by urban villages. The results indicate that there are both positive and negative effects associated with these villages.

Suggested Citation

  • Song, Yan & Zenou, Yves, 2012. "Urban villages and housing values in China," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 495-505.
    • Handle: RePEc:eee:regeco:v:42:y:2012:i:3:p:495-505
    DOI: 10.1016/j.regsciurbeco.2011.06.003
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    15. Ouyang, Yanyan & Cai, Hongbo & Yu, Xuefei & Li, Zijian, 2022. "Capitalization of social infrastructure into China's urban and rural housing values: Empirical evidence from Bayesian Model Averaging," Economic Modelling, Elsevier, vol. 107(C).
    16. Haizhen Wen & Zaiyuan Gui & Chuanhao Tian & Yue Xiao & Li Fang, 2018. "Subway Opening, Traffic Accessibility, and Housing Prices: A Quantile Hedonic Analysis in Hangzhou, China," Sustainability, MDPI, vol. 10(7), pages 1-23, June.
    17. Yingjie Zhang & Siqi Zheng & Yan Song & Yongguang Zhong, 2016. "The Spillover Effect of Urban Village Removal on Nearby Home Values in Beijing," Growth and Change, Wiley Blackwell, vol. 47(1), pages 9-31, March.
    18. Peng, Ying & Tian, Chuanhao, 2022. "Removal and reconstruction: Multi-period price effects on nearby housing from urban village redevelopment," Land Use Policy, Elsevier, vol. 113(C).
    19. Chuanwang Sun & Xiaochun Meng & Shuijun Peng, 2017. "Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    20. Shuyang Li & Fei Qu, 2022. "Preserving Authenticity in Urban Regeneration: A Framework for the New Definition from the Perspective of Multi-Subject Stakeholders—A Case Study of Nantou in Shenzhen, China," IJERPH, MDPI, vol. 19(15), pages 1-16, July.
    21. He, Xiaobo & Sim, Nicholas C.S., 2015. "Does economic growth affect urbanization? New evidence from China and the Chinese National Congress," Journal of Asian Economics, Elsevier, vol. 36(C), pages 62-71.
    22. Mingxing Chen & Wenzhong Zhang & Dadao Lu, 2015. "Examining spatial pattern and location choice of affordable housing in Beijing, China: Developing a workable assessment framework," Urban Studies, Urban Studies Journal Limited, vol. 52(10), pages 1846-1863, August.
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    More about this item

    Keywords

    Hedonic prices; Urban villages; Housing price externalities; China;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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