The Regional Heterogeneity Effect of Urban Village Renovation on Neighborhood Housing Prices in Shenzhen

With the fast development of urban village renovation in China, the big cities that vigorously promote the urban village renovation have almost emerged a same situation of “over-rising housing prices”. This paper therefore aimed to evaluate the impact of urban village renovation on neighbor housing prices in Shenzhen. More specifically, we explored and compared the regional heterogeneity effect of urban village renovation on housing prices by dividing Shenzhen into two areas, namely, SEZ (Special Economic Zones) areas and non-SEZ areas. The empirical analysis was based on difference-in-difference (DID) method using historical transaction data of second-hand housing prices. On the basis of the empirical results: (1) The construction of urban village renovation projects boosted the housing price by an average of 18.28%; (2) The impact of urban village renovation on different spatial areas is heterogeneous, the premium of urban village renovation in non-SEZ areas is 8.95% higher than in SEZ areas. When formulating management strategies and policies, the government departments should put more emphasis on the urban village renovation in non-SEZ areas, and incline relevant policies and resources to these areas.