Do bank loans and local amenities explain Chinese urban house prices?

Huang, Daisy J.; Leung, Charles Ka Yui; Qu, Baozhi

doi:10.1016/j.chieco.2015.03.002

Cited by 61 publications

(25 citation statements)

References 54 publications

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“…Mexico City is undoubtedly not alone. According to Huang et al [87], the unaffordability of house price and over-development of real estate in China began in 2009, when the government injected fiscal stimulus to markets as a response to the global financial crisis of 2008. As in the case of China, overdevelopment of real estate in central areas of Mexico City where, on one hand, more local amenities are available and, on the other, where land prices are already high or have the potential to increase, is definitely an expression of real estate market speculation profiting densification policies in a context of profound socioeconomic inequalities.…”

Section: Discussion: Regarding the Policy And Political Implications mentioning

confidence: 99%

Real Estate Industry as an Urban Growth Machine: A Review of the Political Economy and Political Ecology of Urban Space Production in Mexico City

Ramos¹

2019

Sustainability

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Cities concentrate the means of production, wealth, political power, infrastructure, educational institutions, and a relevant share of our cultural heritage. As such, they are seen as places of opportunities. Contemporary urbanization, however, being central to the accumulation of capital, has also escalated environmental problems that are usually suffered by the urban poor due to an uneven production of urban space. Mexico City is not an exception. It has mainly expanded through a lively auto-construction process and, more recently, under the incentive of a speculative urban development. The first trend reinforces the informal housing sector, in certain cases, involving significant environmental implications such as the degradation of land of ecological value. The second trend responds to capital accumulation dynamics, promoting urban renewal in central areas or where a greater potential rent-gap exists, underpinning the uneven production of urban space, and usually withholding most of its related socioenvironmental impacts. This paper focusses on this second process. It assesses the so-called "urban growth machine" in taction, its socioecological impacts, and related contestation processes. With that in mind and after a general introduction and a brief description of urban development in Mexico, the real estate industry in Mexico City is evaluated in terms of the potential ecological implications of the building stock expansion from 2012 to 2018. A spatial distribution analysis of contestation processes, correlated to such urban expansion, is presented as well. The case study confirms what has been learned in other locations of the Global South, where a contradictory and uneven process of urban development has also been experienced under the stimulus of capital speculation. The paper, however, offers a novel approach by bringing together urban political economy, industrial ecology and urban political ecology analytical tools. Such hybridization, it is argued, enables a more comprehensive understanding of contemporary urbanization and its socioenvironmental impacts, which in turn is central to any effort for urban transformation.

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Section: Discussion: Regarding the Policy And Political Implications mentioning

confidence: 99%

Real Estate Industry as an Urban Growth Machine: A Review of the Political Economy and Political Ecology of Urban Space Production in Mexico City

Ramos¹

2019

Sustainability

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“…7 Figure 1a shows that the real house price in 2018, i.e., the house price after removing the inflation factor, is 400% of the 1979 level. It also shows that the house Chen et al (2017), Deng et al (2017), Huang et al (2015), Leung and Wang (2007), , Wu et al (2012Wu et al ( , 2016. 5 The literature related to this recent trade war is growing.…”

Section: Hong Kong Housing Market and The Macroeconomymentioning

confidence: 99%

Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations

Leung¹,

Ng²,

Tang

2020

gwp

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The house price in Hong Kong is well-known to be "unaffordable." This paper argues that the commonly used house price-to-income ratio may be misleading in an economy with almost half of the population living in either public rental housing or subsidized ownership. Moreover, we re-focus on the relationships between economic fundamentals and the housing market of Hong Kong. While the aggregate GDP, population and longevity continue to grow, the real wage and household income fall behind. The trend component of the real GDP growth suffers a permanent downward shift after the first quarter of 1989 (a "political scar"). The trend component of real wage growth is close to zero, and the counterpart of real consumption and real investment decline steadily. Meanwhile, the trend component of the real housing rent and price display patterns that decouple from the macroeconomic variables. We also discuss the directions for future research.

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“…However, a comprehensive investigation of the impact of land supply on real estate investment in all prefecture-level cities has not been conducted. It is also worth noting that many studies focus on a small sample of cities or provincial-level data in studying China's real estate market (e.g., references [48][49][50][51][52][53]). Although these studies shed crucial light on the comprehension of the real estate market in China, they may offer an inadequate picture of China's real estate market given the varying socioeconomic conditions of Chinese cities.…”

Section: State Intervention In Land Supply and Its Impact On Real Estmentioning

confidence: 99%

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

Su¹,

Qian²

2020

Sustainability

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State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central–local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors.

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Do bank loans and local amenities explain Chinese urban house prices?

Cited by 61 publications

References 54 publications

Real Estate Industry as an Urban Growth Machine: A Review of the Political Economy and Political Ecology of Urban Space Production in Mexico City

Real Estate Industry as an Urban Growth Machine: A Review of the Political Economy and Political Ecology of Urban Space Production in Mexico City

Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

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