Impact of Increasing Intercity Connectivity on Local Housing Markets: Study of China’s Yangtze River Delta Region
Publication: Journal of Urban Planning and Development
Volume 149, Issue 1
Abstract
The continuous improvement of urban accessibility has had an increasingly prominent impact on the housing market, especially on urban housing prices. In this process, high speed rail (HSR) can play a key role. Based on urban panel data relating to the Yangtze River Delta in China (2010–2018), this paper discusses the direct impact and spatial spillover effect of HSR on urban housing prices, using a spatial econometric model. The results show that improvements in the HSR services not only significantly increased urban housing prices but also had a positive spatial spillover effect. Morover, due to the space–time compression consequence of HSR, the extant “ripple effect” of housing prices has been further strengthened, and improvements in the service frequency of HSR has brought about a stronger spatial spillover effect on housing prices. This study fills a gap in previous spatial perspective research on the impact of HSR on urban housing prices and offers significant theoretical explanations and empirical evidence. Our research provides valuable inputs for the planning and implementing of stratgies aiming to promote urban development and create economic growth through HSR construction.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
This work was sponsored by the Shanghai Pujiang Program (No. 21PJC054) and National Natural Science Foundation of China (No. 71803037).
References
Ahlfeldt, G. M., and A. Feddersen. 2018. “From periphery to core: Measuring agglomeration effects using high-speed rail.” J. Econ. Geogr. 18 (2): 355–390. https://doi.org/10.1093/jeg/lbx005.
Bashar, O. H. M. N. 2021. “An intra-city analysis of house price convergence and spatial dependence.” J. Real Estate Finance Econ. 63 (4): 525–546. https://doi.org/10.1007/s11146-020-09799-w.
Baysoy, M. A., and S. Altug. 2021. “Growth spillovers for the mena region: Geography, institutions, or trade?” Dev. Econ. 59 (3): 275–305. https://doi.org/10.1111/deve.12267.
Bhatt, A., and H. Kato. 2021. “High-speed rails and knowledge productivity: A global perspective.” Transp. Policy 101: 174–186. https://doi.org/10.1016/j.tranpol.2020.12.006.
Campbell, J. Y., and J. F. Cocco. 2007. “How do house prices affect consumption? Evidence from micro data.” J. Monetary Econ. 54 (3): 591–621. https://doi.org/10.1016/j.jmoneco.2005.10.016.
Cao, J., X. C. Liu, Y. Wang, and Q. Li. 2013. “Accessibility impacts of China’s high-speed rail network.” J. Transp. Geogr. 28: 12–21. https://doi.org/10.1016/j.jtrangeo.2012.10.008.
Chang, J. S., and J.-H. Lee. 2008. “Accessibility analysis of Korean high-speed rail: A case study of the Seoul metropolitan area.” Transport Rev. 28 (1): 87–103. https://doi.org/10.1080/01441640701421495.
Chen, C.-L., and R. Vickerman. 2017. “Can transport infrastructure change regions” economic fortunes? Some evidence from Europe and China.” Reg. Stud. 51 (1): 144–160. https://doi.org/10.1080/00343404.2016.1262017.
Chen, H. S., D. Q. Sun, Z. J. Zhu, and J. Zeng. 2016. “The impact of high-speed rail on residents” travel behavior and household mobility: A case study of the Beijing-Shanghai line, China.” Sustainability 8 (11): 14.
Chen, Z., and K. E. Haynes. 2015. “Impact of high speed rail on housing values: An observation from the Beijing-Shanghai line.” J. Transp. Geogr. 43: 91–100. https://doi.org/10.1016/j.jtrangeo.2015.01.012.
China Railway Publishing House. 2010–2018. National Railway Passenger Timetable. [In Chinese.] Beijing: China Railway Publishing House.
Dai, X., M. Xu, and N. Wang. 2018. “The industrial impact of the Beijing-Shanghai high-speed rail.” Travel Behav. Soc. 12: 23–29. https://doi.org/10.1016/j.tbs.2018.03.002.
Debrezion, G., E. Pels, and P. Rietveld. 2011. “The impact of rail transport on real estate prices: An empirical analysis of the Dutch housing market.” Urban Stud. 48(5): 997–1015. https://doi.org/10.1177/0042098010371395.
Givoni, M. 2006. “Development and impact of the modern high-speed train: A review.” Transport Rev. 26 (5): 593–611. https://doi.org/10.1080/01441640600589319.
Gonzalez, L., and F. Ortega. 2013. “Immigration and housing booms: Evidence from Spain.” J. Reg. Sci. 53 (1): 37–59. https://doi.org/10.1111/jors.12010.
Guerrieri, V., D. Hartley, and E. Hurst. 2013. “Endogenous gentrification and housing price dynamics.” J. Public Econ. 100: 45–60. https://doi.org/10.1016/j.jpubeco.2013.02.001.
Guirao, B., J. L. Campa, and N. Casado-Sanz. 2018. “Labour mobility between cities and metropolitan integration: The role of high speed rail commuting in Spain.” Cities 78: 140–154. https://doi.org/10.1016/j.cities.2018.02.008.
Guirao, B., N. Casado-Sanz, and J. L. Campa. 2020. “Labour opportunities provided by Spanish high-speed rail (HSR) commuting services in a period of financial crisis: An approach based on regional wage disparities and housing rental prices.” Reg. Stud. 54 (4): 539–549. https://doi.org/10.1080/00343404.2018.1530751.
Guirao, B., A. Lara-Galera, and J. L. Campa. 2017. “High speed rail commuting impacts on labour migration: The case of the concentration of metropolis in the Madrid functional area.” Land Use Policy 66: 131–140. https://doi.org/10.1016/j.landusepol.2017.04.035.
Gutiérrez, J. 2001. “Location, economic potential and daily accessibility: An analysis of the accessibility impact of the high-speed line Madrid-Barcelona-French border.” J. Transp. Geogr. 9 (4): 229–242. https://doi.org/10.1016/S0966-6923(01)00017-5.
Hall, P. 2009. “Magic carpets and seamless webs: Opportunities and constraints for high–speed trains in Europe.” Built Environ. 35 (1): 59–69. https://doi.org/10.2148/benv.35.1.59.
Heuermann, D. F., and J. F. Schmieder. 2019. “The effect of infrastructure on worker mobility: Evidence from high-speed rail expansion in Germany.” J. Econ. Geogr. 19 (2): 335–372. https://doi.org/10.1093/jeg/lby019.
Holly, S., M. Hashem Pesaran, and T. Yamagata. 2011. “The spatial and temporal diffusion of house prices in the UK.” J. Urban Econ. 69 (1): 2–23. https://doi.org/10.1016/j.jue.2010.08.002.
Huang, Z., and X. Du. 2021. “How does high-speed rail affect land value? Evidence from China.” Land Use Policy 101: 105068. https://doi.org/10.1016/j.landusepol.2020.105068.
Hwang, M., and J. M. Quigley. 2006. “Economic fundamentals in local housing markets: Evidence from US metropolitan regions.” J. Reg. Sci. 46 (3): 425–453. https://doi.org/10.1111/j.1467-9787.2006.00480.x.
Jia, S., C. Zhou, and C. Qin. 2017. “No difference in effect of high-speed rail on regional economic growth based on match effect perspective?” Transp. Res. Part A Policy Pract. 106: 144–157. https://doi.org/10.1016/j.tra.2017.08.011.
Jiao, J., J. Wang, F. Zhang, F. Jin, and W. Liu. 2020. “Roles of accessibility, connectivity and spatial interdependence in realizing the economic impact of high-speed rail: Evidence from China.” Transp. Policy 91: 1–15. https://doi.org/10.1016/j.tranpol.2020.03.001.
Lean, H. H., and R. Smyth. 2013. “Regional house prices and the ripple effect in Malaysia.” Urban Stud. 50 (5): 895–922. https://doi.org/10.1177/0042098012459582.
Levkovich, O., J. Rouwendal, and R. van Marwijk. 2016. “The effects of highway development on housing prices.” Transportation 43 (2): 379–405. https://doi.org/10.1007/s11116-015-9580-7.
LeSage, J., and R. K. Pace. 2009. Introduction to spatial econometrics. 1st ed. New York: Chapman and Hall/CRC.
Li, L. S. Z., F. X. Yang, and C. Cui. 2019. “High-speed rail and tourism in China: An urban agglomeration perspective.” Int. J. Tourism Res. 21 (1): 45–60. https://doi.org/10.1002/jtr.2240.
Li, Y., Z. Chen, and P. Wang. 2020. “Impact of high-speed rail on urban economic efficiency in China.” Transp. Policy 97: 220–231. https://doi.org/10.1016/j.tranpol.2020.08.001.
Lin, Y., Z. Ma, K. Zhao, W. Hu, and J. Wei. 2018. “The impact of population migration on urban housing prices: Evidence from China’s major cities.” Sustainability 10 (9): 3169. https://doi.org/10.3390/su10093169.
Liu, L., and M. Zhang. 2018. “High-speed rail impacts on travel times, accessibility, and economic productivity: A benchmarking analysis in city-cluster regions of China.” J. Transp. Geogr. 73: 25–40. https://doi.org/10.1016/j.jtrangeo.2018.09.013.
Liu, X., C. Jiang, F. Wang, and S. Yao. 2021. “The impact of high-speed railway on urban housing prices in China: A network accessibility perspective.” Transp. Res. Part A Policy Pract. 152: 84–99. https://doi.org/10.1016/j.tra.2021.08.006.
Low, J. M. W., and B. K. Lee. 2020. “A data-driven analysis on the impact of high-speed rails on land prices in Taiwan.” Appl. Sci. 10 (10): 3357. https://doi.org/10.3390/app10103357.
Mankiw, N. G., and D. N. Weil. 1989. “The baby boom, the baby bust, and the housing market.” Reg. Sci. Urban Econ. 19 (2): 235–258. https://doi.org/10.1016/0166-0462(89)90005-7.
Mayer, C. 2011. “Housing bubbles: A survey.” Annu. Rev. Econ. 3: 559–577. https://doi.org/10.1146/annurev.economics.012809.103822.
Meen, G. 1999. “Regional house prices and the ripple effect: A new interpretation.” Hous. Stud. 14 (6): 733–753. https://doi.org/10.1080/02673039982524.
Paliska, D., D. Fabjan, R. Vodopivec, and S. Drobne. 2018. “The impact of the construction of motorways and expressways on housing prices in north-east Slovenia.” Geod. Vestn. 62 (2): 218–234. https://doi.org/10.15292/geodetski-vestnik.2018.02.218-234.
Peng, L., and T. G. Thibodeau. 2017. “Idiosyncratic risk of house prices: Evidence from 26 million home sales.” Real Estate Econ. 45 (2): 340–375. https://doi.org/10.1111/1540-6229.12136.
Railway Gazette. 2021a. “UK: HS2 enters the delivery stage.” Railway Gazette. Accessed May 5, 2021. https://www.railwaygazette.com/in-depth/uk-hs2-enters-the-delivery-stage/59046.article.
Railway Gazette. 2021b. “Spanish high speed network reaches Orihuela.” Railway Gazette. Accessed February 2, 2021. https://www.railwaygazette.com/high speed/spanish-high speed-network-reaches-orihuela/58426.article.
Railway Gazette. 2022. “Trenitalia launches French domestic high speed services.” Railway Gazette. Accessed April 6, 2022. https://www.railwaygazette.com/passenger/trenitalia-launches-french-domestic-high-speed-services/61332.article.
Rosenberg, S. 2020. “Conventional and unconventional monetary policies: Effects on the Finnish housing market.” Balt. J. Econ. 20 (2): 170–186. https://doi.org/10.1080/1406099X.2020.1792085.
Rouwendal, J., and E. Meijer. 2001. “Preferences for housing, jobs, and commuting: A mixed logit analysis.” J. Reg. Sci. 41 (3): 475–505. https://doi.org/10.1111/0022-4146.00227.
Shao, S., Z. Tian, and L. Yang. 2017. “High speed rail and urban service industry agglomeration: Evidence from China’s Yangtze River Delta region.” J. Transp. Geogr. 64: 174–183. https://doi.org/10.1016/j.jtrangeo.2017.08.019.
Shaw, S.-L., Z. Fang, S. Lu, and R. Tao. 2014. “Impacts of high speed rail on railroad network accessibility in China.” J. Transp. Geogr. 40: 112–122. https://doi.org/10.1016/j.jtrangeo.2014.03.010.
Sinha, M. 2021. “Harnessing land value capture: Perspectives from India’s urban rail corridors.” Land Use Policy 108: 105526. https://doi.org/10.1016/j.landusepol.2021.105526.
Wang, F., X. Wei, J. Liu, L. He, and M. Gao. 2019a. “Impact of high-speed rail on population mobility and urbanisation: A case study on Yangtze River Delta urban agglomeration, China.” Transp. Res. Part A Policy Pract. 127: 99–114. https://doi.org/10.1016/j.tra.2019.06.018.
Wang, L., Y. Liu, C. Sun, and Y. Liu. 2016. “Accessibility impact of the present and future high-speed rail network: A case study of Jiangsu Province, China.” J. Transp. Geogr. 54: 161–172. https://doi.org/10.1016/j.jtrangeo.2016.05.015.
Wang, R., L. Ye, and L. Chen. 2019b. “The impact of high-speed rail on housing prices: Evidence from China’s prefecture-level cities.” Sustainability 11 (13): 3681. https://doi.org/10.3390/su11133681.
Wang, X.-R., E. C.-M. Hui, and J.-X. Sun. 2017. “Population migration, urbanization and housing prices: Evidence from the cities in China.” Habitat Int. 66: 49–56. https://doi.org/10.1016/j.habitatint.2017.05.010.
Wang, Y., X. Liu, and F. Wang. 2018. “Economic impact of the high-speed railway on housing prices in China.” Sustainability 10 (12): 4799. https://doi.org/10.3390/su10124799.
Wen, H., Y. Xiao, and L. Zhang. 2017. “School district, education quality, and housing price: Evidence from a natural experiment in Hangzhou, China.” Cities 66: 72–80. https://doi.org/10.1016/j.cities.2017.03.008.
Yang, H. J., and M. J. Choi. 2019. “Apartment complexes in the Korean housing market: What are the benefits of agglomeration?” J. Hous. Built Environ. 34 (4): 987–1004. https://doi.org/10.1007/s10901-019-09652-4.
Zhang, D., and G.-Z. Fan. 2019. “Regional spillover and rising connectedness in China’s urban housing prices.” Reg. Stud. 53 (6): 861–873. https://doi.org/10.1080/00343404.2018.1490011.
Zhang, W., P. Nian, and G. Lyu. 2016. “A multimodal approach to assessing accessibility of a high-speed railway station.” J. Transp. Geogr. 54: 91–101. https://doi.org/10.1016/j.jtrangeo.2016.05.007.
Zhang, X., W. Wu, Z. Zhou, and L. Yuan. 2020. “Geographic proximity, information flows and corporate innovation: Evidence from the high-speed rail construction in China.” Pacific-Basin Finance J. 61: 101342. https://doi.org/10.1016/j.pacfin.2020.101342.
Zheng, S., and M. E. Kahn. 2013. “China’s bullet trains facilitate market integration and mitigate the cost of megacity growth.” PNAS 110 (14): E1248–E1253. https://doi.org/10.1073/pnas.1209247110.
Information & Authors
Information
Published In
Journal of Urban Planning and Development
Volume 149 • Issue 1 • March 2023
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Mar 15, 2022
Accepted: Aug 12, 2022
Published online: Nov 7, 2022
Published in print: Mar 1, 2023
Discussion open until: Apr 7, 2023
ASCE Technical Topics:
- Business management
- Contracts and subcontracts
- High-speed rail
- Housing
- Infrastructure
- Interurban travel
- Practice and Profession
- Pricing
- Rail transportation
- River engineering
- Rivers and streams
- Traffic engineering
- Transportation engineering
- Travel modes
- Urban and regional development
- Urban areas
- Water and water resources
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.