Removal and reconstruction: Multi-period price effects on nearby housing from urban village redevelopment
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Peng, Ying [1] ; Tian, Chuanhao [2]
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[1] Peking University
Peking University
China
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[2] Zhejiang University
Zhejiang University
China
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- Localización: Land use policy: The International Journal Covering All Aspects of Land Use, ISSN 0264-8377, ISSN-e 1873-5754, Nº. 113, 2022
- Idioma: inglés
- Texto completo no disponible (Saber más ...)
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Resumen
The removal and reconstruction of urban villages can improve the residential environment in the vicinity and promote the willingness of buyers to pay. A detailed investigation of the price effects on nearby housing generated by urban village redevelopment helps to capture the added value of public investment. Previous studies often ignore the temporal variation of the price effects. Furthermore, they confuse the price effects from the removal of dilapidated housing and the construction of new buildings. Based on the listing prices in 2017–2018 and transaction data in 2015 of secondhand residential housing in Hangzhou, China, this paper built a multi-period difference-in-differences model to examine the multi-period price effects from urban village redevelopment on nearby housing and to isolate the removal effects of old buildings and the amenity effects of reconstruction. The results show that (1) An anticipatory effect of up to 13% occurs before the urban village redevelopment; removal and reconstruction will bring a total premium of 20% to nearby housing prices; and the total price effects gradually increase in time and slightly fall back after four years. (2) Less than 15% of the added value comes from the removal of dilapidated housing in an urban village, while more than 85% comes from the reconstruction of new buildings. (3) The price effects of large-scale urban village redevelopment are much more obvious.
