The Capitalization Effect of Natural Amenities on Housing Price in Urban China: New Evidence From Changsha

Abstract

This study takes Changsha, an emerging mega-city in China, as a sample to analyze the influence of natural amenity (NA) on housing prices during different periods. We divided the NA into four categories according to their characteristics: Green Space (GS), Wetland Park (WP), XiangRiver Scenic Belt (XR), and green ratio within a community. The housing transaction data is used to calculate the accessibility of a settlement to nearest NA via the distance. The capitalization effect of NA is investigated through a geographic weighted regression (GWR), combined with the hedonic theory. Results show that ①the impact and scope of NA on housing prices gradually expanded during years. ②As the key nature landscape of Changsha, the impact coefficient of XR has risen from 2.34% in 2012 to 5.32% in 2020. WP has a remarkable increase for affecting housing prices, rising from 1.24 to 3.65%. Effect of GS keeps in line during years, at 2.34–3.72%. And green ratio’s impact increase from 3.61 to 4.55%. ③The higher capitalization effect of NA undergoes a spatial expansion from the central area to urban fringe over time, which also implies the capitalization of NA is becoming more pronounced. ④Residential communities impacted by NA have a propensity to separate over time. This study provides a different perspective in defining the importance of natural amenities in urban habitat of modern China.