Abstract
Wanda—one of the Chinese real estate sector leading companies claims that the Wanda Plaza is the “heart” of a city. In this chapter, we use the panel dataset of land transactions during the period of 2008–2016 in 109 counties in Yangtze River Delta to test whether the entry of a new Wanda Plaza increases the county-level average land prices. Using the difference-in-difference (DID) strategy, our estimates suggest that a new Wanda Plaza opening increases the price of the industrial land by about 0.1–0.15% and increases the price of the residential land by about 0.22–0.25%.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
The five Wanda Plazas including Yuyao Wanda Plaza, Wenzhou Pingyang Wanda Plaza, Jiangyin Wanda Plaza, Taicang Wanda Plaza, Yixing Wanda Plaza were all built in county-level cities or counties where there is no corresponding land transaction data available.
- 2.
There are 206 administrative districts and counties in Yangtze River Delta in total. However, there are only 109 districts and counties with land transaction data available in Wind Database.
- 3.
The standard statistics of population refers to the year-end registered population; however, some cities only have data on permanent resident population. We use either of these two depending on availability and term them uniformly as total population.
- 4.
The unit of land price is 10,000 RMB/m2; the unit of regional population is 10,000; the unit of the other six control variables (gross regional product, fixed asset investment, fiscal revenue, fiscal expenditure, gross construction industry product, and real estate investment) is 10,000 RMB.
References
Bao, H. X. H., Glascock, J. L., Zhou, S. Z. and Feng, L. (2014), “Land value determination in an emerging market: empirical evidence from China”, University of Cambridge working paper.
Bayer, P. and Timmins, C. (2007), “Estimating equilibrium models of sorting across locations”, The Economic Journal: 117(518), 353–374.
Black, S. E. (1999), “Do Better Schools Matter? Parental valuation of elementary education”, Quarterly Journal of Economics: 114(2), 577–599.
Calabrese, S., Epple, D., Romer, T. and Sieg, H. (2006), “Local public good provision: voting, peer effects, and mobility”, Journal of Public Economics: 90(6–7), 959–981.
Chay, K. Y. and Greenstone, M. (2005), “Does air quality matter? Evidence from the housing market”, Journal of Political Economy: 113(2), 376–424.
Des Rosiers, F., Lagana, A., Thériault, M. and Beaudoin, M. (1996), “Shopping centres and house values: an empirical investigation”, Journal of Property Valuation and Investment January: 14(4), 41–62.
Figlio, D. N. and Lucas, M. E. (2004), “What’s in a grade? School report cards and the housing market”, American Economic Review: 94(3), 591–604.
Financial Times. (2014), Dalian Wanda: Big fish. Available at: https://search.proquest.com/docview/1648108626?accountid=153081
Kau, J. B. and Sirmans, C. F. (1979), “Urban land value functions and the price elasticity of demand for housing”, Journal of Urban Economics: 6(1), 112–121.
Kowalski, J. G. and Paraskevopoulos, C. C. (1990), “The impact of location on urban industrial land prices”, Journal of Urban Economics: 27(1), 16–24.
Kuminoff, N. and Pope, J. (2012), “‘Rosen Bias’ in the Willingness to Pay for Nonmarket Goods”, mimeo.
Lim, J. S. and Missios, P. (2007), “Does size really matter? Landfill scale impacts on property values”, Applied Economic Letters: 14(10), 719–723.
Linden, L. and Rockoff, J. E. (2008), “Estimates of the impact of crime risk on property values from Megan’s Laws”, The American Economic Review: 98(3), 1103–1127.
Parmeter, C. and Pope, J. (2012), “Quasi-experiments and hedonic property value methods”, IDEAS Working Paper Series from RePEc.
Peiser, R. B. (1987), “The determinants of nonresidential urban land values”, Journal of Urban Economic: 22(3), 340–360.
Pope, J. (2007), “Fear of crime and housing prices: household reactions to sex offender registries”, Journal of Urban Economics: 64(3), 601–614.
Pope, D. G. and Pope, J. C. (2015), “When Walmart comes to town: Always low housing prices? Always?”, Journal of Urban Economics: 87, 1–13.
Ridker, R. G. and Henning, J. A. (1967), “The determinants of residential property values with special reference to air pollution”, Review of Economics and Statistics: 49(2), 246–257.
Rosen, S. (1974), “Hedonic prices and implicit markets: product differentiation in pure competition”, Journal of Political Economy: 82(1), 34–55.
Sirpal, R. (1994), “Empirical modeling of the relative impacts of various sizes of shopping centers on the values of surrounding residential properties”, Journal of Real Estate Research: 9(4), 487–505.
Stock, J. H. and Watson, M. M. (2012), Introduction to Econometrics (3rd edition), Edinburgh: Pearson Education Limited.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
Zhang, Z., Chen, Y. (2018). When Wanda Plaza Comes to the Yangtze River Delta: Will the Land Prices Increase?. In: Hung, J., Chen, Y. (eds) The State of China’s State Capitalism. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-0983-0_4
Download citation
DOI: https://doi.org/10.1007/978-981-13-0983-0_4
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-0982-3
Online ISBN: 978-981-13-0983-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)