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Research Seminars & Workshops @ IRES


Ms Wang Yourong
Department of Real Estate, NUS

Urban Land Supply Policy, Urban Growth and Housing Price in China


Date:

21 November 2012, Wednesday

Time:

12.30pm - 2.00pm

Venue:

ER1 SDE 2 Level 3


Abstract

Motivated by pursuing fast urban economic growth, China urban land supply policies have been in favor of non-residential land uses. The present paper attempts to investigate how the policies have resulted in both desirable and undesirable urban outcomes. We develop a two-sector urban economic model which predicts that increasing the share of non-residential land increases urban wage rate, housing price and output per capita, but decreases the population size. The relationship between total urban economic output and the share of non-residential land appears to be an inverse U-shape. Additional new land supply in non-residential sector boosts the growth rates of wage, housing price, and output per capita. The empirical study adopts across cities' urban economic dataset between 2003 and 2010 in China. The findings support the predictions and provide an alternative explanation to the surge in China's urban housing prices as well as the lagging urbanization process.

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