The influence of administrative border on the spatial correlation of house prices: evidence from China

Abstract This paper empirically examines the spatial correlation differences and mechanisms of housing prices in prefecture-level cities, considering the influence of administrative boundaries. Using an extended spatial Durbin model and panel data from 292 prefecture-level cities in China between 20...

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Bibliographic Details
Main Authors: He Wang, Shujun Yang
Format: Article
Language:English
Published: Springer Nature 2025-02-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04463-1
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Summary:Abstract This paper empirically examines the spatial correlation differences and mechanisms of housing prices in prefecture-level cities, considering the influence of administrative boundaries. Using an extended spatial Durbin model and panel data from 292 prefecture-level cities in China between 2000 and 2013, the study identifies the attributes and stage characteristics of real estate. The results indicate a significant spatial correlation in housing prices between neighboring prefecture-level cities, with inter-provincial administrative boundaries reducing the spatial correlation between these cities by 62.11%. Further research reveals significant changes in the spatial correlation of housing prices following the 2007 subprime mortgage crisis, with the transformation of real estate’s dominant attributes being the primary reason for these changes.
ISSN:2662-9992