Land supply, pricing and local governments' land hoarding in China

Jin-feng, DU; Peiser, Richard

doi:10.1016/j.regsciurbeco.2014.07.002

Cited by 140 publications

(68 citation statements)

References 29 publications

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“…In order to bring population growth under control, there was a decline in residential land supply after the Chinese government strengthened the intervention in land market [59]. It was also found that land price is positively and significantly correlated with the behavior of hoarding land by local governments [60]. Thus, it is a feasible choice for governments to deal with population pressure with the help of high land prices, especially in first-tier (i.e., very well-developed) megacities in China such as Beijing.…”

Section: Relationship Between Land Price and Immigrant Populationmentioning

confidence: 99%

Spatiotemporal Effects of Main Impact Factors on Residential Land Price in Major Cities of China

Yang

et al. 2017

Sustainability

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Abstract:With the rapid development of land marketization in China, the spatial patterns of residential land prices in different regions have become increasingly complicated. The very high and continuously rising residential land prices in many cities are causing significant challenges to economic development and social stability. Yet, there has only been a limited amount of attempts made to model and analyze the regional dynamic changes of residential land price systematically, especially in term of the spatially varying effects of key demographic and economic factors. In this study we provided a perspective analysis of the changes of residential land prices in 2008, 2011 and 2014 based on the land price monitoring records of 105 cities and then conducted a geographically weighted regression (GWR) analysis on the relationships between residential land price and three major impact factors (i.e., immigrant population, gross domestic product (GDP) and investment in residential buildings). Results show that the areas in which GDP had relatively strong positive impacts on residential land price expanded with time. The negative effects of immigrant population on residential land price were mainly concentrated in the cities around the Bohai Rim and the area with negative effects gradually shrank in the three studied years. Conversely, the areas with negative correlation between investment in residential buildings and residential land price gradually expanded in size over time. A geographical detector was used to examine the relative importance of factors to residential land price. It was found that the GDP had more significant influence on residential land price than other factors and the influence of the three factors to overall variation in residential land price increased over the three studied years. These results underscore the importance of taking spatially varying effects of major driving factors into account in policy-making on regional land market.

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Section: Relationship Between Land Price and Immigrant Populationmentioning

confidence: 99%

Spatiotemporal Effects of Main Impact Factors on Residential Land Price in Major Cities of China

Yang

et al. 2017

Sustainability

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“…As local governments competed with each other (Huang and Du, 2017), prices for industrial land in China stayed very low (World Bank and DRC, 2014). Supplying land to industry below its real value constitutes inefficient use of a valuable resource; in 2003, a nationwide survey found that 70% of land in China's development zones was unused (Du and Peiser, 2014). Meanwhile, in Chinese cities, residential land prices shot up (Peng and Thibodeau, 2012): Since 2003 real constant quality values for residential land in Beijing have rose by nearly 800%; half the increase was in the 2008-10 period alone (Wu, Gyourko and Deng, 2012).…”

Section: The Land and Labour Market Challenges Of Rapid Urbanizationmentioning

confidence: 99%

“…On average, land leases accounted for 60% of local budgetary revenues in 2003-04 (Su, Tao and Wang, 2013), and they continued to rise as fiscal decentralization reduced other sources of local revenue (Wu, Li and Yan, 2015). 2 Local government collateralization of 'land banks', accumulation of bad debts, and land hoarding can all trigger serious problems in the financial sector (Du and Peiser, 2014). 3 The ability to obtain land through non-market channels has led to a shift of attention away from GDP growth (Chen and Kung, 2016) and towards corruption (Hsu et al, 2017).…”

Section: The Land and Labour Market Challenges Of Rapid Urbanizationmentioning

confidence: 99%

“…Local governments can generate vast amounts of revenue by expropriating land cheaply and selling it to developers at prices orders of magnitude higher than what is being paid in compensation (Murray and Frijters, 2016). They may then use the proceeds to finance recurrent expenditures, or use land they have banked to secure loans, with far-reaching impacts on the financial system (Du and Peiser, 2014). Legal restrictions on farmland conversion may have little impact on farmland loss (Feng, Lichtenberg and Ding, 2015) but their effect on house prices and wages (Liang, Lu and Zhang, 2016) can create efficiency losses (Au and Henderson, 2006b).…”

Section: Introductionmentioning

confidence: 99%

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Property Rights Reform to Support China's Rural–Urban Integration: Village‐Level Evidence from the Chengdu Experiment

Deininger

Liu

et al. 2019

Oxf Bull Econ Stat

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As part of a national experiment, in 2008, Chengdu prefecture launched a series of property rights reforms, among them complete registration of all land and measures to ease transferability and eliminate labour market restrictions. A comparison of villages inside and outside the prefecture's border using a difference‐in‐difference approach suggests that the reforms have reduced administrative reallocations; aligned land use closer to economic incentives, mainly through market transfers; and stimulated enterprise startups. These results, most of which are more pronounced for villages closer to Chengdu city, illuminate the potential gains from factor market reform.

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“…As Cho (1996: 145) stated long time ago, "During the past decade, the number of studies on intertemporal changes in house prices has increased rapidly because of wider availability of extensive micro-level data sets, improvements in modeling techniques, and expanded business applications." The literature on house and land prices has been increasingly expanding since then (e.g., Bryan and Colwell, 1982;Case and Quigley, 1991;Chinloy, 1992;Clapp and Giaccotto, 1994;Calhoun, 1995;Quigley, 1995;Capozza and Seguin, 1996;Alpanda, 2012;Alexander, 2013;Du and Peiser, 2014;Kok et al 2014). Most of these studies are empirical.…”

Section: Introductionmentioning

confidence: 99%