The Effect of School Quality on House Prices: Evidence from Shanghai, China

Ziming Liu, Jiayu Ye, Guangcheng Ren () and Shuyi Feng
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Ziming Liu: School of Social and Public Administration, East China University of Science and Technology, Shanghai 200237, China
Jiayu Ye: Qiantang Science and Technology Innovation Center, Hangzhou 310000, China
Guangcheng Ren: College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China
Shuyi Feng: China Resources & Environment and Development Academy, Nanjing Agricultural University, Nanjing 210095, China

Land, 2022, vol. 11, issue 11, 1-14

Abstract: Understanding the housing price premium of high-quality education could be important for improving our knowledge on the formation of housing prices and potential consequences of educational resources misallocation. This paper estimates the housing price premium of high-quality primary schools in Shanghai, China. Applying the hedonic price and paired difference models with a boundary fixed effect to the house resale transaction data from January to October 2019, the study found that the housing price premium of high-quality primary school was approximately 15.6%. Moreover, the price premium of small houses was larger than that of large houses. The results suggest that high-quality education has a significant capitalization effect on housing values. This implies that the policy of restricting one student to have a seat in only one particular school within the zoning area would lead to greater education inequality and future policies should consider this effect.

Keywords: price premium; key primary school; paired difference model; hedonic price model (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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