Abstract
China’s rapid urbanization, characterized by large-scale rural–urban migration and radial expansion of urban built-up areas, has produced a new type of urban neighborhood, namely the chengzhongcun. With access to an unique micro second-hand housing transactions database which the number of samples is more than 20 thousands during the period from 2006 to 2011 in Beijing, and the list of the 50 key villages which was announced by the government in 2010, we first develop a hedonic housing price model to investigate whether the proximity to urban villages affects the selling price of urban housing units, and then use a DID-Hedonic model specification to examine the effect of the redevelopment project on the surrounding housing price. Controlling for the structure, other characteristics of urban housing units, the time trend and the spatial fixed effect, we find that housing prices are lower the closer the buildings are from urban villages. Further, the housing units near the villages do enjoy a higher increase in price after the announcement of the redevelopment projects. Both of the results are significant at 1 % level. This may indicate a significant negative externality of urban village to its neighbors.
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Notes
- 1.
Apart from the negative effects mentioned above, the citizens also approve of the positive functions of urban villages such as cheap daily commodities and services, such as cleaning staff and security guards.
- 2.
The urban villages in Beijing can be classified into two types: the first type refers to the nooks of the city which are in the built-up area with poor hygiene condition and social security; the second refers to the administrative villages in urban planning areas, most of which are located in rural-urban fringe zones. The differences of the two lie in the land ownership, size and location. The land of the first type is state owned while the second is rural collective owned. As for the size and location, the first villages are mainly small ones close to the center of the city (within 4th Ring Road or even 3rd Ring Road) while the latter are large ones where many immigrants are settled and are further form the city center (most are out of the 4th ring road of Beijing).
- 3.
Due to the lack of information, we cannot get detailed information about the location of all the urban villages in Beijing. According to the survey by Beijing Liquidity Management Committee in 2009, the number of villages with more than 10,000 immigrants has reached 81 [10]. Thanks to the vigorous promotion of renovation programs and news reports, we are able to collect some key facts of the villages.
- 4.
The information includes features like the transaction price, project name of the house, location, etc. and housing structural features like the area, house age, house type, floor, orientation, decoration, etc.
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Acknowledgments
This research is supported in part by the National Natural Science Foundation of China (No. 70973065), Major project of National Social Science Foundation of China (No. 09&ZD042) and Tsinghua University Initiative Scientific Research Program.
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Zhang, Y., Zheng, S., Sun, C. (2014). What’s the Effect of Urban Villages on Commercial Housing Price? An Analysis Based on Second-Hand Housing Transactions in Beijing. In: Wang, J., Ding, Z., Zou, L., Zuo, J. (eds) Proceedings of the 17th International Symposium on Advancement of Construction Management and Real Estate. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35548-6_19
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DOI: https://doi.org/10.1007/978-3-642-35548-6_19
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