 What contributes to the rising house prices in Beijing? A decomposition approachJournal of Housing Economics, 2018, vol. 41, issue C, 72-84 Abstract: The average real house price in Beijing rose by roughly 41.8% between 2012 and 2015, and the appreciation differs across low- versus high-priced homes. The rising house price might be caused by changes in the characteristics of housing units, and it might also be induced by the changing returns to housing characteristics in the underlying hedonic price functions. In this paper, we use a comprehensive housing transaction dataset and analyze the changes in the distribution of house prices over time through a decomposition approach. The result of Oaxaca-Blinder mean decomposition suggests that the proportion of the price gap between 2012 and 2015 due to altered returns over time is greater than the proportion caused by changes in housing characteristics. The quantile decomposition shows that the decomposition effects are heterogenous across the complete distribution of house prices. We also find that low-priced homeowners are exposed to a decline in house prices, while there are deteriorating housing conditions from 2012 to 2015. The high-priced homeowners experience an improvement in living conditions, but a rise in house prices. Keywords: Quantile decomposition; House price; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:41:y:2018:i:c:p:72-84 DOI: 10.1016/j.jhe.2018.04.003 Access Statistics for this article Journal of Housing Economics is currently edited by H. O. Pollakowski More articles in Journal of Housing Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.