Working Paper

Do bank loans and local amenities explain Chinese urban house prices?

Abstract: Based on Chinese city-level data from 1999 to 2012 and controlling for geological, environmental, and social diversity, this study suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans on housing prices tend to be related to the level of amenities, suggesting an integrated approach (i.e. combining macroeconomic and urban economic variables) of housing market for the future research.

JEL Classification: G21; O18; R11;

https://doi.org/10.24149/gwp230

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Globalization Institute Working Papers

Publication Date: 2015-03-01

Number: 230

Note: Published as: Huang, Daisy J., Charles K. Leung and Baozhi Qu (2015), "Do Bank Loans and Local Amenities Explain Chinese Urban House Prices?" China Economic Review 34: 19-38.