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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2013, Vol. 8 Issue (2) : 207-219    https://doi.org/10.3868/s060-002-013-0010-3
research-article |
Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities
Xiaofang Dong(), Shihe Fu(), Yufei Yuan()
Wang Yanan Institute for Studies in Economics (WISE), Xiamen University, Xiamen 361005, China
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Abstract

Local governments often charge developers impact fees to finance local public goods. This has been practiced in Chinese cities for more than two decades; however, no empirical studies have tested the effect of impact fees on real estate prices. Using a panel data set for 35 large- and medium-sized cities from 1998 to 2008, we find that impact fees lead to a significant increase in real estate prices. For a given city, an increase in impact fees by one yuan leads to an increase of about 5 yuan in the price of newly-built housing; a 1% increase in impact fees leads to an increase of 5 percentage points in the housing price index and 7 percentage points in the land price index.

Keywords impact fee      real estate price      local public finance     
Corresponding Authors: Xiaofang Dong,Email:xfangdong@gmail.com; Shihe Fu,Email:fushihe@xmu.edu.cn; Yufei Yuan,Email:yyuanwise@gmail.com   
Issue Date: 05 June 2013
 Cite this article:   
Xiaofang Dong,Shihe Fu,Yufei Yuan. Impact Fees and Real Estate Prices: Evidence from 35 Chinese Cities[J]. Front Econ Chin, 2013, 8(2): 207-219.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-002-013-0010-3
http://academic.hep.com.cn/fec/EN/Y2013/V8/I2/207
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