Effects Of Urban-Village Reconstruction On The Housing Price

Since the Chinese government initiated the Affordable Housing Project,the upgrading of shantytowns in China has been continuously promoted.In recent years,the scale of shantytowns transformation has steadily increased,and the redevelopment work has achieved remarkable results.The project of shantytowns transformation plays an important role in improving the living conditions of people with housing difficulties,filling shortcomings in development,stimulating economic growth,and promoting new urbanization.However,the large-scale shantytowns transformation results in a large number of relocated households with the main implementation of monetized resettlement.The shantytowns transformation tends to break the balance of supply and demand in the real estate market in the short term.The cities that vigorously promote the upgrading of shantytowns have almost experienced the booming in the real estate market,and the housing price rises too fast.Lin'an District in Hangzhou,has signed 5,929 demolition in 2017,which has exceeded the sum of the previous five years,and the average transaction price of commercial housing has doubled.The shantytowns transformation has a great impact on the real estate price.The stable housing price is related to the healthy development of the national economy and the improvement of the residents' living quality.It is of great significance to study the impact of the shantytowns transformation on the housing price.Taking the reconstraction of urban-village in Lin'an District of Hangzhou as the research object,this paper collects various data including the number of urban-village reconstruction,the volume of commercial housing transactions and the transaction price in Lin'an and surrounding areas in recent years.Based on the analysis of relevant factors affecting housing prices,this study focused on the impact of four main factors including urban-village reconstruction scale,monetized resettlement policy,the land supply and supporting measures.Then this paper applies time series regression model to quantitative the effects of number of monetization resettlement households and land transfer price on the housing price.The results show that the number of monetized resettlement households has a significant positive impact on the housing price.The positive impact of land transfer price on housing price shows lagging characteristics,that is,the land transfer price shows a significant positive impact on the housing price three months later.The rise in land transfer price can bring buyers positive expectations to the future house price which can push up the housing price.Based on the above research results,this paper puts forward specific policy suggestions on the reconstruction of urban-village from four aspects:scientifically determining the scale of reconstruction,perfecting and upgrading resettlement policies,reasonably adjusting land supply,and timely carrying out government intervention.We hope that the urban-village reconstruction work can become a livelihood project and development project which will truly benefit all people,maximizing the economic and social benefits.In addition,this paper tries to provide reference for the government to make decisions on the reconstruction of urban-village in the future.