Residential Land Leasing and Price Under Public Land Ownership

Abstract

Based on the district-level data for Shanghai, China, from 2004 to 2015, the factors that influence residential land leasing by the district government and residential land leasing price under public land ownership will be studied. Officials from the Departments of Planning and Land Authority in Shanghai, China, will be interviewed to obtain reasonable influencing factors, which will be used as the variables in the mathematical models. Then, a hedonic model will be used to discuss the relationship between residential land leasing price and the influencing factors, and the mathematical model for total residential land leasing area will be presented based on the ordinary least square (OLS) method. Whether the price and total area of residential land are correlated with land characteristics, district-level economic development, political tenure, city and district centers, public schools, and local public goods, will be analyzed. The regression results show some factors that the government concerns about when leasing residential land under public land ownership, and how residential land leasing prices are influenced by these factors. The policy implications for the government and people for residential land leasing are presented, and these could be applied to other large cities in developing countries.