How does the G20 Summit affect land market? Evidence from China
Abstract
We employ the difference-in-difference and synthetic control methods to investigate the capitalization effect of hosting the G20 Summit on land market, based on China’s land transaction dataset from 2011 to 2019. We find that hosting the G20 Summit has a significant positive effect on land prices in the host city, increasing land prices by over 22.6% compared to comparable cities. The impact of hosting the G20 Summit on land prices is larger in the post-G20 period than in the preparation period. Further, hosting the G20 Summit has heterogeneous and distributional effects on land prices. The capitalization effects of venue construction and transportation infrastructure upgrading on land prices are the main channels.
Keyword : G20 Summit, land price, capitalization effect, mega-event, China
How to Cite
Du, X., & Huang, Z. (2021). How does the G20 Summit affect land market? Evidence from China. International Journal of Strategic Property Management, 25(6), 432–445. https://doi.org/10.3846/ijspm.2021.15470
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Ahlfeldt, G. M., & Maennig, W. (2010). Impact of sports arenas on land values: evidence from Berlin. The Annals of Regional Science, 44(2), 205–227. https://doi.org/10.1007/s00168-008-0249-4
Ahlfeldt, G. M., Maennig, W., & Richter, F. J. (2017). Urban renewal after the Berlin Wall: a place-based policy evaluation. Journal of Economic Geography, 17(1), 129–156. https://doi.org/10.1093/jeg/lbw003
Cai, H., Henderson, J. V., & Zhang, Q. H. (2013). China’s land market auctions: evidence of corruption? The RAND Journal of Economics, 44(3), 488–521.
https://doi.org/10.1111/1756-2171.12028
Chen, Y. Y., Jin, G. Z., Kumar, N., & Shi, G. (2013). The promise of Beijing: evaluating the impact of the 2008 Olympic Games on air quality. Journal of Environmental Economics and Management, 66, 424–443.
https://doi.org/10.1016/j.jeem.2013.06.005
Currie, J., Davis, L., Greenstone, M., & Walker, R. (2015). Environmental health risks and housing values: evidence from 1,600 toxic plant openings and closings. American Economic Review, 105(2), 678–709.
https://doi.org/10.1257/aer.20121656
Ding, C., & Lichtenberg, E. (2011). Land and urban economic growth in China. Journal of Regional Science, 51(2), 299–317. https://doi.org/10.1111/j.1467-9787.2010.00686.x
Du, X. J., & Huang, Z. H. (2017). Ecological and environmental effects of land use change in rapid urbanization: the case of Hangzhou, China. Ecological Indicators, 81, 243–251.
https://doi.org/10.1016/j.ecolind.2017.05.040
Du, X. J., & Huang, Z. H. (2018). Spatial and temporal effects of urban wetlands on housing prices: evidence from Hangzhou, China. Land Use Policy, 73, 290–298.
https://doi.org/10.1016/j.landusepol.2018.02.011
George, H. (1879). Progress and poverty. Robert Schalkenbach Foundation.
Hilber, C. A. L. (2017). The economic implications of house price capitalization: a synthesis. Real Estate Economics, 45(2), 301–339. https://doi.org/10.1111/1540-6229.12129
Ho, S. P. S., & Lin, G. C. S. (2003). Emerging land markets in rural and urban China: policies and practices. The China Quarterly, 175, 681–707. https://doi.org/10.1017/S0305741003000407
Huang, Z. H., & Du, X. J. (2015). Assessment and determinants of residential satisfaction with public housing in Hangzhou, China. Habitat International, 47, 218–230.
https://doi.org/10.1016/j.habitatint.2015.01.025
Huang, Z. H., & Du, X. J. (2017a). Government intervention and land misallocation: evidence from China. Cities, 60, 323–332. https://doi.org/10.1016/j.cities.2016.10.006
Huang, Z. H., & Du, X. J. (2017b). Strategic interaction in local governments’ industrial land supply: evidence from China. Urban Studies, 54(6), 1328–1346.
https://doi.org/10.1177/0042098016664691
Huang, Z. H., & Du, X. J. (2018). Holding the market under the stimulus plan: local government financing vehicle’s land purchasing behavior in China. China Economic Review, 50, 85–100. https://doi.org/10.1016/j.chieco.2018.04.004
Huang, Z. H., & Du, X. J. (2021). Does air pollution impact investor cognition and valuation? Evidence from the Chinese land market. Real Estate Economics, 1–21.
https://doi.org/10.1111/1540-6229.12344
Kavetsos, G. (2012). The impact of the London Olympics announcement on property prices. Urban Studies, 49, 1453– 1470. https://doi.org/10.1177/0042098011415436
Kontokosta, C. (2012). The price of victory: the impact of the Olympic games on residential real estate markets. Urban Studies, 49(5), 961–978. https://doi.org/10.1177/0042098011411952
Kuminoff, N. V., & Pope J. C. (2014). Do “capitalization effects” for public goods reveal the public’s willingness to pay? International Economic Review, 55(4), 1227–1250.
https://doi.org/10.1111/iere.12088
Kuminoff, N. V., & Pope, J. C. (2012). The value of residential land and improvements during the great housing boom and bust. Land Economics, 89(1), 1–29.
https://doi.org/10.3368/le.89.1.1
Lin, G. C. S., & Ho, S. P. S. (2005). The state, land system, and land development processes in contemporary China. Annals of the Association of American Geographers, 95(2), 411–436. https://doi.org/10.1111/j.1467-8306.2005.00467.x
Marris, T. (1987). The role and impact of mega-events and attractions on regional and national tourism development resolutions. Tourism Review, 42, 3–12. https://doi.org/10.1108/eb057975
Rappaport, J. (2009). The increasing importance of quality of life. Journal of Economic Geography, 9(6), 779–804.
https://doi.org/10.1093/jeg/lbp009
Tao, R., Su, F. B., Liu, M. X., & Cao, G. Z. (2010). Land leasing and local public finance in China’s regional development: evidence from prefecture-level cities. Urban Studies, 47(10), 2217–2236. https://doi.org/10.1177/0042098009357961
Touseef, H., Jaffar, A., Zou, W., Shakeel, A., Bi, X. H., & Zhu, G. L. (2021). Impact of urban village disamenity on neighboring residential properties: empirical evidence from Nanjing through hedonic pricing model appraisal. Journal of Urban Planning and Development, 147(1), 1–13.
https://doi.org/10.1061/(ASCE)UP.1943-5444.0000645
Tu, C. (2005). How does a new sports stadium affect housing values? The case of FedEx Field. Land Economics, 81, 379–395. https://doi.org/10.3368/le.81.3.379
Tyrrell, M. (1987). The role and impact of mega-events and attractions on regional and national tourism development resolutions. The Tourist Review, 42(4), 3–12.
https://doi.org/10.1108/eb057975
Wang, H., Wang, L. L., Su, F. B., & Tao, R. (2012). Rural residential land use in China: patterns, efficiency and prospects for reform. Habitat International, 36(2), 201–209.
https://doi.org/10.1016/j.habitatint.2011.06.004
Wang, M., & Bao, H. X. H. (2018). Mega-event effects on the housing market: evidence from the Beijing 2008 Olympic Games. Cities, 72, 207–2016. https://doi.org/10.1016/j.cities.2017.07.014
Wang, M., Bao, H. X. H., & Lin, P. (2015). Behavioural insights into housing relocation decisions: the effects of the Beijing Olympics. Habitat International, 47, 20–28.
https://doi.org/10.1016/j.habitatint.2015.01.001
Witt, S. F. (1988). Mega-events and mega-attractions. Tourism Management, 9(1), 76–77.
https://doi.org/10.1016/0261-5177(88)90063-5
Zhao, X. B., Ching, L., He, Y., & Chan, N. Y. M. (2017). Playing games and concepts: Beijing Olympics and China urban development model. Journal of Contemporary China, 26, 465–487. https://doi.org/10.1080/10670564.2016.1245896
Zhu, H. J., Deng, Y. H., Zhu, R., & He, X. B. (2016). Fear of nuclear power? Evidence from Fukushima nuclear accident and land markets in China. Regional Science and Urban Economics, 60, 139–154.
https://doi.org/10.1016/j.regsciurbeco.2016.06.008
Zhu, J. (2005). Transitional institutions for the emerging land market in China. Urban Studies, 42(8), 1369–1390. https://doi.org/10.1080/00420980500150714