Study On The Effects Of Chongqing’s District Urbanization On Residential Price Based On Spatial Econometrics

Urbanization is the product of social and economic development to a certain stage. Unlike Europe and America’s urbanization, China’s urbanization started late, developed slowly but fast. The Chinese government has always attached importance on the development of urbanization, because urbanization is the main force to expand domestic demand and stimulate economic growth. Urbanization is along with the continuous improvement of industrial intensification, the gradually increase of urban population, the rising level of household consumption, the gradually increase of sophistication of urban construction and the continuous adjustment of government regulatory policies. The factors of urbanization will cause some changes in the structure of supply and demand of urban housing market, causing the fluctuations from urban housing market.Previous studies on the impact of urbanization on the urban housing market price is limited to the area within the system, namely the changes of urban housing market is caused by the changes of various factors of urbanization. However, everything is interrelated with each other in space. The distance between the object determines the spatial correlation degree between things. The closer the spatial distance between things, the higher the spatial correlation degree, vice versa. The spatial correlation exists with the approach of spatial distance. On the grand of integrated market economic, economic development of regions are not closed and isolated. The association between regions is becoming stronger, and capital, labor and other production factors flow and exchange between regions, promoting economic of regions developing in an open environment. With spatial correlation between regions existing, regional urbanization will not only have an impact on housing market price in the region, but also have an impact on price of the adjacent regions. In this paper, we study the regional urbanization impacts of 38 counties in Chongqing on urban housing market price considering spatial correction effects. To find what factors have more impact on urban housing market price during urbanization, and what impacts these factors have on urban housing market price. To provide some basis for the relevant departments make developing regulatory policies, strengthen the target on regulation of urban housing market price.In this paper, we study on the effects of Chongqing’s district urbanization on housing price based on spatial econometrics. Selecting urban housing prices as the dependent variable, with residential sales price as an alternative variable, and industrial concentration, consumption levels, population structure, urban construction and government regulation as 5 independent variables during urbanization, which with the proportion of non-agricultural output per capita consumption expenditure, the proportion of non-agricultural population, per capita investment in fixed assets as well as urban land transfer as alternative variables. Using the interrelated data from 2009 to 2013, and calculating the global Moran’s I and Moran scatter plot, there is a positive spatial correction between the urbanization of 38 counties of Chongqing and the urban housing market price. Considering the positive spatial correction between them, through stabling spatial error model with the urban residential as the dependent variable, and using spatial econometric analysis software OpenGeoDa, we make a conclusion that there is a positive spatial correction between the proportion of non-agricultural output per capita consumption expenditure, the proportion of non-agricultural population, per capita investment in fixed assets as well as urban land transfer and urban housing market price with urbanization. Which suggests that urban residential prices will be affected by the level of urbanization of the neighboring districts, and in those factors, consumption level and population structure and government regulation have more impact on urban residential price, which means the higher the consumption level, the more urban population and the higher urban land transfer are, the higher the urban residential price is, and vice versa. Industrial concentration and urban construction have also an impact on urban residential price, the higher industrial concentration and the more perfect the urban construction are, the higher the urban residential price is, conversely, the lower the urban residential is. Finally, based on the specific effects of each factor of urbanization on the urban residential price, some suggestions may be put forward to narrow the price gap of urban houses between counties, and promote urban housing market coordinated development.