By Ching-Ching Chen
This paper seeks to investigate the determinants of land within Hangzhou China. There are two main goals that the research paper will attempt to address. The first is to build upon existing research on land pricing in terms of the theories outlined by the monocentric city and hedonic pricing models. Second, the paper will use a dataset of Hangzhou land sales transactions between the years of 2003 and 2011 to investigate the possible existence of “luxury residuals” among commercial and residential land parcels. Nonetheless, due to the presence of large residuals, while Chinese consumers value certain amenities is not fully captured by these results. Rather, a number of case studies or outliers are used to fully examine the influences of these amenity variables in driving extreme prices. The result support the hypothesis that China, located at the bottom of Kuznets environmental curve, values amenities at extreme levels as a result of scarcity.
Advisor: Charles Becker | JEL Codes: Q51, R0, R14, R52 | Tagged: