Spillover Effect of Urban Reconstruction from Announcement to Completion on Residential Prices: Application of Two-Stage Spatial Quantile Regression

Author:

Lee Chun-Chang1ORCID,Lin Zhi-Yi1,Liang Chih-Min2,Yu Zheng3

Affiliation:

1. National PingTung University, Pingtung

2. National Taipei University of Business, Taipei

3. National Chengchi University, Taipei

Abstract

This study analyzed four urban reconstruction projects in Taipei City (Zhufeng Tianmu, Huaku Sky Garden, Leqin Sanxi, and Yongde Yanyan) that were completed in 2016 based on data released by the Urban Regeneration R&D Foundation. The housing transaction data spanned from January 2008 to December 2017. The difference-in-difference method was used in conjunction with quantile regression to analyze the spillover effects of urban reconstruction projects on neighboring areas during the various phases of these projects. The empirical results showed that, during the planning and announcement phase, the effect on housing prices was negative and statistically significant for mid-to-low-priced units but positive and statistically significant for high-priced units. During the construction and post-completion phases, the effect was negative and statistically significant for low-priced, mid-to-low-priced, and mid-priced units, with low-priced units being the most affected group.

Publisher

SAGE Publications

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