Abstract
Using the information of city renewal in Shenzhen between 2010-2018, this paper set “the redevelopment of villages in the city” as a quasi-natural experiment. This paper investigates the spillover effects of urban renewal on local housing market. By matching the housing transaction data and urban village redevelopment projects in Shenzhen through the precise geographical information, we utilize the Hedonic model and the difference-in-difference method to analyze how urban renewal affects housing prices nearby. We find that before the redevelopment, urban villages have a negative externality to the surrounding housing market. After the redevelopment, the surrounding housing price increases significantly by 2.32 percentage points on average. The externality of the urban village transformation showed the distance decay and time advancement trend. Besides, in the areas with better transportation and business services, urban village redevelopment has a greater impact on surrounding house prices.
| Translated title of the contribution | Urban Renewal's Premium: Evidence from a Quasi-Natural Experiment of Urban Village Redevelopment |
|---|---|
| Original language | Chinese (Simplified) |
| Pages (from-to) | 78-90 |
| Journal | China Economic Studies |
| Volume | 2021 |
| Issue number | 04 |
| DOIs | |
| Publication status | Published - 2021 |
| Externally published | Yes |
