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Nonlinear Influence of Public Services on Urban Housing Prices: A Case Study of China

Author

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  • Lei Gan

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

  • Hong Ren

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

  • Weimin Xiang

    (School of Management Science and Engineering, Chongqing Technology and Business University, Chongqing 400067, China)

  • Kun Wu

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

  • Weiguang Cai

    (School of Management Science and Real Estate, Chongqing University, Chongqing 400044, China)

Abstract

Owing to China’s rapid urbanization and internal migration, public services are unevenly distributed in cities, affecting urban housing prices. This study examines the dynamic effect of China’s public service levels on urban housing prices. We used the entropy method to calculate the public service index of 30 cities in China and a panel threshold regression model to explore the relationship between urban public service levels and housing prices. We found that the degree of the effect of public service levels on urban housing prices varies with the per capita disposable income of urban residents, demonstrating an inverted U-shaped curve. The role of public services in promoting urban housing prices increases with the increase in the level of urbanization. When the level of urbanization exceeds its threshold, the enhancement effect increases. These results help us better understand the theories of housing price changes in Chinese cities and support policymakers in formulating effective control measures for the housing market.

Suggested Citation

  • Lei Gan & Hong Ren & Weimin Xiang & Kun Wu & Weiguang Cai, 2021. "Nonlinear Influence of Public Services on Urban Housing Prices: A Case Study of China," Land, MDPI, vol. 10(10), pages 1-15, September.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:10:p:1007-:d:643351
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    References listed on IDEAS

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    Cited by:

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    2. Wei Hu & Shanggang Yin & Haibo Gong, 2022. "Spatial–Temporal Evolution Patterns and Influencing Factors of China’s Urban Housing Price-to-Income Ratio," Land, MDPI, vol. 11(12), pages 1-15, December.
    3. Qimeng Cai, 2024. "Public service level and human development in the context of digitalization," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(3), pages 1103-1119, December.
    4. Hanli Chen & Yu Zhang & Ningxin Zhang & Man Zhou & Heping Ding, 2022. "Analysis on the Spatial Effect of Infrastructure Development on the Real Estate Price in the Yangtze River Delta," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    5. Chaohai Shen & Tong Sheng & Xingheng Shi & Bingquan Fang & Xiaoqian Lu & Xiaolan Zhou, 2022. "The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development," Land, MDPI, vol. 11(12), pages 1-21, December.

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