Research on Spatial Agglomeration of Real Estate Investment in China

DOI

10.2991/isbcd-18.2018.7How to use a DOI?

Keywords

real estate development investment; footloose capital model; rate of return on capital; spatial dubin model

Abstract

In this paper, Linear Footloose Capital Model (LFC Model) is used to explain the spatial agglomeration principle of real estate investment, and regional return on capital determines the direction of real estate investment, while the rate of return on capital is influenced by combined action of both market scale effect and market crowding-out effect. In this paper, Spatial Dubin Model (SDM) is built by considering such four factors as urban size, related element (manufacturing scale), per capita income and market potential and based on the data of 259 cities at and above prefecture level in China from 2003 to 2014. The results show that each factor has significant positive effect on real estate investment, while the spatial lag items of urban size and market potential have significant negative impact on real estate investment, indicating that when urban size and market potential grow to a certain extent, the intensity of market competition increases and the crowding-out effect on real estate investment is dominant, causing real estate investment to flow out from big cities.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Youyang You
PY  - 2018/10
DA  - 2018/10
TI  - Research on Spatial Agglomeration of Real Estate Investment in China
BT  - Proceedings of the 3rd International Symposium on Asian B&R Conference on International Business Cooperation (ISBCD 2018)
PB  - Atlantis Press
SP  - 29
EP  - 33
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-18.2018.7
DO  - 10.2991/isbcd-18.2018.7
ID  - You2018/10
ER  -