State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities
State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefect...
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doaj-c3068d8f010a48c8bc77b802b707110e2020-11-25T01:42:38ZengMDPI AGSustainability2071-10502020-01-01123101910.3390/su12031019su12031019State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level CitiesXing Su0Zhu Qian1School of Planning, University of Waterloo, 200 University Ave W, Waterloo, ON N2L 3G1, CanadaSchool of Planning, University of Waterloo, 200 University Ave W, Waterloo, ON N2L 3G1, CanadaState intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central−local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors.https://www.mdpi.com/2071-1050/12/3/1019state interventionland supplyreal estate investmentland speculationprefecture-level citieschina |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Xing Su Zhu Qian |
spellingShingle |
Xing Su Zhu Qian State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities Sustainability state intervention land supply real estate investment land speculation prefecture-level cities china |
author_facet |
Xing Su Zhu Qian |
author_sort |
Xing Su |
title |
State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities |
title_short |
State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities |
title_full |
State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities |
title_fullStr |
State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities |
title_full_unstemmed |
State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities |
title_sort |
state intervention in land supply and its impact on real estate investment in china: evidence from prefecture-level cities |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2020-01-01 |
description |
State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central−local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors. |
topic |
state intervention land supply real estate investment land speculation prefecture-level cities china |
url |
https://www.mdpi.com/2071-1050/12/3/1019 |
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AT xingsu stateinterventioninlandsupplyanditsimpactonrealestateinvestmentinchinaevidencefromprefecturelevelcities AT zhuqian stateinterventioninlandsupplyanditsimpactonrealestateinvestmentinchinaevidencefromprefecturelevelcities |
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