Research on spatial spillover effects and regional differences of urban housing price in China

Abstract

After the global financial crisis in 2008, China’s real estate market has gradually developed from “full prosperity” to “regional differentiation”, manifested by the coexistence of high growth and high inventory, indicating a typical uneven regional development. This phenomenon made it inevitable to use the so-called “city-specific policies” to regulate the real estate market, and the linkage of housing prices and the measurement of spatial spillover effects resulting in regional differences in housing prices have become issues that urgently need to be clarified. This paper takes the urban housing prices of 266 prefecture-level cities in China from 2005 to 2017 as the main research object and measures the global and local correlations of urban housing prices by constructing a spatial weight matrix. Meanwhile, a Spatial Dubin Model is established to study the spillover effects of urban housing prices among regions with focus on geographical spans. This paper finds that when comparing the regional differences of spillover effects, it is not scientific enough to divide cities into regions according to the traditional way, and when the regions are divided according to urban agglomeration, the results are more representative and scientific.