Dynamic effects and spatial heterogeneity of land supply on housing price: evidence from Nanchang, China
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 6 August 2021
Issue publication date: 17 June 2022
Abstract
Purpose
Economic fundamentals are recognized as determining factors for housing on the city level, but the relationship between housing price and land supply has been disputed. This study aims to examine what kind of impact housing prices have on land supply and whether there is heterogeneity in different regional spaces.
Design/methodology/approach
This study collects the relevant data of land supply and housing prices in Nanchang from 2010 to 2018, constructs a vector autoregression (VAR) model, including one external factor and four internal factors of land supply to explore the dynamic effects and spatial heterogeneity of land supply on housing prices through regression analysis. Also, the authors use the geographic detector to analyze the spatial heterogeneity of housing prices in Nanchang.
Findings
This study found that the interaction between land supply and housing price is extremely complex because of the significant differences in the study area; the variables of land supply have both positive and negative effects on housing price, and the actual effect varies with the region; and residential land and GDP are the two major factors leading to the spatial heterogeneity in housing price.
Research limitations/implications
The dynamic effects of land supply on housing price are mainly reflected in the center and edge of the city, the new development area, and the old town, which is consistent with the spatial pattern of the double core, three circles and five groups in Nanchang.
Originality/value
This is a novel work to analyze the dynamic effects of land supply on house prices, instead of a single amount of land supply or land prices. Furthermore, the authors also explore the spatial heterogeneity according to the regional characteristics, which is conducive to targeted policymaking.
Keywords
Acknowledgements
Declaration of Competing Interest: The authors of the paper certify that they have no conflicts of interest of any kind.
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.
The research described in the paper is funded by the Social Science Foundation of Jiangxi Province (Grant No: 20GL20). We also appreciate the detailed suggestions and comments from the editor and the anonymous reviewers.
Citation
Wu, Z., Wang, Y. and Liu, W. (2022), "Dynamic effects and spatial heterogeneity of land supply on housing price: evidence from Nanchang, China", International Journal of Housing Markets and Analysis, Vol. 15 No. 4, pp. 875-894. https://doi.org/10.1108/IJHMA-02-2021-0022
Publisher
:Emerald Publishing Limited
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