Land Supply To Housing Supply: Evidence From Shanghai, China
||Gu, Guowei; Lynne Michael, Yapeng Cheng
||Land Supply To Housing Supply: Evidence From Shanghai, China
||21st Annual European Real Estate Society Conference in Bucharest, Romania
||Given its importance, housing has recently once again become a red-hot topic for politicians, economists and others in many western countries, derived mainly from the housing market failures such as unaffordability and short of supply. This prompts new interest in the area. Housing studies has attracted the attention of academics for some time. But the focus has been more on price and demand side than on supply side.DiPasqualh (1999) raised the question of “why don’t we know more about housing supply?” and offered the explanation that this is “because there is so little information where the unit of observation is the builder, investor, or landlord.” One decade later, the problem of lack of segregate supply side information still haunts housing researchers. “Aggregate data is sufficient for addressing cross metropolitan variation and works well for documenting housing market time series.” But without incorporating the micro data of the individual supply units, it is difficult to better understand the individual behaviour that determines these aggregate patterns. (Murphy, 2010)By using the data of 907 individual housing projects from the official website managed by Shanghai Housing Administration Bureau, the registration of the projects on the website being mandatory for all housing developers who want to sell the housing in the market and the information being public access free, the paper tries to unravel the mechanism of how land supply, one of the fundamentally important inputs, influences housing supply by investigating three issues: 1) how aggregate housing supply responds to major external economic and financial factors which include land supply; 2) how the land supplied is developed to produce the housing supplied in terms of area (square meter) and unit (flat or house); 3) how long the production process lasts from the purchase of land to the marketing of housing.DiPasqualh, D. (1999) Why don’t we know more about housing supply? Journal of Real Estate Economics and Finance, 18:1.Murphy, A. (2010) A Dynamic Model of Housing Supply. PHD thesis, Washington University in St. Louis.
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||D : Housing Markets & Economics
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