Analysis on the Spatial Effect of Infrastructure Development on the Real Estate Price in the Yangtze River Delta

Abstract

This study explores the spatial effect of infrastructure development on real estate prices in the Yangtze River Delta. It constructs an evaluation system of the infrastructure development level across five dimensions (i.e., transportation, water supply and drainage, energy and power, postal communication, and ecological environment), analyzes the development characteristics of urban infrastructure in the Yangtze River Delta, and uses a spatial panel model to explore how urban infrastructure development affects real estate prices. Results indicate that (1) the overall development level of urban infrastructure in the Yangtze River Delta region shows an upward trend. Significant regional differences exist as the development level of urban infrastructure in the eastern region is ahead of that in the central region; (2) Spatial autocorrelation and real estate prices in the Yangtze River Delta region in infrastructure development and overall levels, respectively, are high; (3) Infrastructure directly affects local real estate market demand and improves the vitality of the housing market in adjacent areas; and (4) Infrastructure construction can significantly promote the rise of urban real estate prices in the eastern region, while this driving effect is not significant in the central region. This research will help the government promote the coordinated development of urban infrastructure and formulate relevant policies for the macro-control of the real estate market in urban agglomerations.