Urban village redevelopment and local housing market in China

With rapid urbanization taking place in China in recent decades, urbanvillage redevelopment is increasingly recognized as a viable strategy topromote efficient land use and urban revitalization, which entailsexternalities at the local level. This paper examines the external effectsof urban village redevelopment on the local housing market over threeproject phases, i.e. before, during and after redevelopment. We apply astaggered difference-in-differences model to the housing transactiondata of Zhengzhou city, and our results reveal the presence of a positivespillover from urban village redevelopment to the local housing market.Specifically, during the project development phase, urban villageredevelopment brings about a housing price premium of 4.9% within thetreatment area. After project completion, redevelopment furthercontributes 4.9% to the local house price premium. These results arerobust to heterogeneity in terms of the redevelopment project scale aswell as the economic well-being of the districts where the urban villagesare located.