Merger of Two Developed Districts: Uncertainty Channels and Housing Price Dynamics

District consolidation (DC) is increasingly being used as a strategy to optimize urban governance and resource allocation. This study examines the housing market effects of the 2020 Chongchuan–Gangzha DC in Nantong, China, using microlevel property resale data and a difference-in-differences framework. Our findings show a 6.6% decline in housing prices and a 10.1% increase in time on market, indicating a significant erosion of both prices and market liquidity postconsolidation. The merger of two similarly developed districts, both small in territorial scale, may raise uncertainty about growth opportunities. We identify an uncertainty channel through behavioral patterns, such as more frequent price adjustments by sellers and a preference for properties near established amenities. Proximity to amenities (e.g., subways, schools, hospitals, and malls) significantly mitigated price declines, with each additional amenity within a 1 km radius reducing the negative impacts by 0.3%. We argue that managing this uncertainty through transparent communication about future development plans and strategic investments in amenity-poor areas is crucial for stabilizing housing markets during such transitions.

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Publication Details

Journal
Journal of Urban Planning and Development
Published
2026-04-13
DOI
https://doi.org/10.1061/jupddm.upeng-6082
Primary Topic
Urban Planning and Governance
Type
article
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article

Merger of Two Developed Districts: Uncertainty Channels and Housing Price Dynamics

Nanyang Bu, Yuhang Mai
Journal of Urban Planning and Development
Urban Planning and Governance
article

Merger of Two Developed Districts: Uncertainty Channels and Housing Price Dynamics

Nanyang Bu, Yuhang Mai
article en

Abstract

District consolidation (DC) is increasingly being used as a strategy to optimize urban governance and resource allocation. This study examines the housing market effects of the 2020 Chongchuan–Gangzha DC in Nantong, China, using microlevel property resale data and a difference-in-differences framework. Our findings show a 6.6% decline in housing prices and a 10.1% increase in time on market, indicating a significant erosion of both prices and market liquidity postconsolidation. The merger of two similarly developed districts, both small in territorial scale, may raise uncertainty about growth opportunities. We identify an uncertainty channel through behavioral patterns, such as more frequent price adjustments by sellers and a preference for properties near established amenities. Proximity to amenities (e.g., subways, schools, hospitals, and malls) significantly mitigated price declines, with each additional amenity within a 1 km radius reducing the negative impacts by 0.3%. We argue that managing this uncertainty through transparent communication about future development plans and strategic investments in amenity-poor areas is crucial for stabilizing housing markets during such transitions.

Journal of Urban Planning and DevelopmentVol. 152(2)
Shanghai University (CN), Shanghai University of Engineering Science (CN)
Sustainable cities and communities
Openalex Percentile: Top 11%
Urban Planning and Governance
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Merger of Two Developed Districts: Uncertainty Channels and Housing Price Dynamics — Nanyang Bu, Yuhang Mai · Journal of Urban Planning and Development (2026) | TGRS Research Map | TGRS