Land Supply and House Prices in China

Qingyu Wang, Hao Zhu and Panxu Sun

Applied Economics Letters, 2024, vol. 31, issue 15, 1414-1419

Abstract: Most microeconomic models consider that expanding the land supply would enlarge the housing stock, reducing the pressure on house prices to increase. Using 234 prefecture-level city data from 2011 to 2020 in China, we find land supply is positive with house prices, suggesting this widely used conclusion is invalid in China. Besides, the positive relation between house prices and land supply is more pronounced in the higher house price area. We consider local governments utilize the relevant land revenue to attract industries and build infrastructure, resulting in a positive externality of increased land supply and a rise in housing prices.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2187026 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:31:y:2024:i:15:p:1414-1419

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2187026

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().