Interaction between Urban Expansion and Variations in Residential Land Prices: Evidence from the Cities in China
Publication: Journal of Urban Planning and Development
Volume 149, Issue 2
Abstract
Urban expansion is the result of the comprehensive action of various social and economic factors, among which variation in land prices is regarded as the leading factor affecting the direction and intensity of urban expansion. However, few of existing studies have explored the interaction relationship between urban expansion and variations in residential land prices, which needs to be looked at urgently in both theoretical research and decision-making practice. In this study, based on theoretical analysis, a panel vector autoregression model was constructed using the data of 104 cities in China from 2001 to 2017. The results show that there is a long-term two-way causality and mutual promotion between urban expansion and increases in residential land prices. The increase in the residential land supply caused by urban expansion will restrain the rise of residential land prices, but this effect is not sustained over the long run. Both urban expansion and residential land price rises are subject to inertia, the latter to a greater extent than the former. The results also reveal that the interaction differs for cities at different stages of economic development. Based on the analysis, policy suggestions for guiding urban expansion and further exerting macrocontrol over land market are proposed.
Practical Applications
It is very necessary to study the land price of urban housing, because this issue is related to the increase in people’s happiness in life. Land price change is considered the dominant factor affecting the direction and intensity of urban expansion. Therefore, studying the relationship between urban expansion and residential land price is helpful to guide the orderly and reasonable urban expansion. The purpose of this study is to clarify the detailed process of urban expansion and residential land price, so as to help policymakers to formulate corresponding policies in different links, and to combine the research conclusions with the process of making policy recommendations, in order to provide beneficial help for urban planners and decision-makers in urban planning and land price regulation policies.
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Data Availability Statement
Some or all data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
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Journal of Urban Planning and Development
Volume 149 • Issue 2 • June 2023
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© 2023 American Society of Civil Engineers.
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Received: Jul 22, 2022
Accepted: Jan 9, 2023
Published online: Mar 21, 2023
Published in print: Jun 1, 2023
Discussion open until: Aug 21, 2023
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