Option effect of land transfer by city governments: a case study of Hangzhou

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-12-11 DOI:10.1108/jpif-09-2020-0108
Ling Zhang, Minghui Zheng, Zheyan Zhang
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Abstract

PurposeThis paper aims to study the impact of land options on the land transfer behaviour of Chinese city governments.Design/methodology/approachBased on the institutional environment of Hangzhou, China, the option pricing model is used to measure the option value of the trading plots. The effect of the option value on the land transfer price and the timing of transfers are estimated respectively, using the hedonic price model and the survival analysis models.FindingsThe results show that the option value has a significant explanation on land price and timing of land transfers. Under the effect of option value, the positive impact of fiscal pressure on the possibility of land transfer weakens. From the perspective of the annual option premium rate, the option premium is closely related to the real estate cycle. Option premiums are higher during booms but lower during recessions and in new urban areas.Practical implicationsBy revealing the distinction of land option premiums in different places and times, this paper provides a reference for city governments seeking a balance between real estate regulation and obtaining more land revenue.Originality/valueBy introducing policy variables that reflect the degree of tightness of real estate regulation and indicators of local government financial pressure, the paper discusses the impact of options on the transfer behaviour of local governments in different situations.
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城市政府土地出让的期权效应——以杭州市为例
目的研究土地选择对中国城市政府土地出让行为的影响。设计/方法/途径基于中国杭州的制度环境,运用期权定价模型对交易地块的期权价值进行测度。利用享乐价格模型和生存分析模型,分别估计了期权价值对土地出让价格和出让时机的影响。结果表明,期权价值对土地价格和土地出让时机具有显著的解释作用。在期权价值的作用下,财政压力对土地流转可能性的正向影响减弱。从年度期权溢价率来看,期权溢价与房地产周期密切相关。期权溢价在繁荣时期较高,但在衰退时期和新城市地区较低。本文通过揭示土地期权溢价在不同地域、不同时期的差异,为城市政府在房地产调控与获取更多土地收益之间寻求平衡提供参考。独创性/价值通过引入反映房地产调控松紧程度的政策变量和地方政府财政压力指标,探讨期权对不同情况下地方政府转移行为的影响。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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