THE CO-EVOLUTION OF GATED COMMUNITIES AND PUBLIC GOODS IN CHINA. Jingjing Ruan Iowa State University April. 20, 2015

Transcription

1 THE CO-EVOLUTION OF GATED COMMUNITIES AND PUBLIC GOODS IN CHINA Jingjing Ruan Iowa State University April. 20, 2015

2 Why is this topic? 1. The era of deregulation In may 2014, the Chinese government started institutional reform and decided to cancel 133 approval authority of the central government and other ministries. 2. Gated communities are already very common in China About all new housing built in China over the last 10 years is gated. Approaching 100% of houses built in China s sprawling new metropolises are governed by local Neighborhood organizations 3. The big issue is how government can better manage them or provide better service for them. How to balance the private government with the municipal government, Private seems to reduce the public realm, but it secures more efficient collective realms

3 Definition of key words There are two kinds of communities in China, one is residential & commercial building (RC), the other is residential apartment (R), most of residential apartments are gated communities. Gated community: with neighborhood walls, guards, owner-governance structures, fees and neighborhood management. RC R

4 Definition of key words Their differences between R and RC are shown below. Residential apartment Residential commercial building & Brief description Regulated by the Standards for Residential District Planning, has the required public goods in the community Right of use lasts 70 years Attract all citizens Not regulated by the Standards for Residential District Planning Right of use lasts 40 years Mixed use, usually located in commercial or quasi-residential zoning areas, typically no precincts Utility fee is much higher than that of R Attract single person, mostly used for investment or for renting

5 Definition of key words Local public goods Local public goods are public goods that are provided by local government and can be enjoyed only by residents in the local community: for example, local public school, public transport stations, beaches, parks, etc. are typical examples of public goods. Public Goods Club goods Club goods are privately provided public goods. They are usually provided by developers, and managed by private management companies or home-owner associations in China. These goods include convenience shops, connecting roads within the precinct, landscaped open space, small-scale sports facilities, kindergartens, primary and secondary schools, senior residents community centers, clinics, welfare services, playgrounds, swimming pools, parking and so on. State public goods and national public goods

6 Research Question Will the housing price of gated community be more sensitive to club goods or local public goods? What is suggestion for the city governors? As club goods and local public goods are in an urban ecosystem (Woo and Webster, 2014), we can use the biological concept to describe their relationship. Biological concept: Mutualism (+ +), benefits both species Antagonistic interactions (+ -), one species benefits and the other is harmed Competition (- -; + +), using the same resource Commensalism (+ 0), one benefits but the other is unaffected Amensalism (- 0), one is unaffected while the other is harmed

7 Research Question The hypotheses can be addressed as below. Public goods Definition Hypotheses Suggestion for The relationship Which is CCs management between club goods more sensitive and local public to? goods Transportation Metro station, bus station, Residential mutualism (++) Local public Mainly supplied by aspect street, parking space goods Government, working with developers environmental Park, river, swimming pool, playground, Commensalism(+0) Club goods Mainly supplied by aspect cultural and healthy aspect commercial aspect social aspect negative aspect mountain, square Education, library, hospital, gym, community center Competition(- - ;+ +) Local public goods developers Mainly supplied by Government, working with developers Department stores, super stores, center Competition(- - ;+ +) Club goods Mainly supplied by CBD developers Police station, rescue station, urban amensalism (- 0) Club goods Mainly supplied by village association developers Garbage station, toilet, sewage treatment amensalism (- 0) Local public Mainly supplied by facilities, distribution substation, freight road, high tension corridor, and other dusty, noisy goods Government, functions

8 Research Design Haizhu District in Guangzhou Number of gated communities: Population of Haizhu District in Guangzhou: 840 thousand Area: 102 km²

9 Research Design Data Select all the residential & commercial building (RC) in Haizhu district of Guangzhou, the number is 83. Then choose one nearest residential apartment (R) with every RC. The total RCs and Rs are 166. Digitize the all communities, collect the average house price of every community from Soufang website. Geoda Relationship to space, to visually display public goods and club communities in space. Depend variable Average housing price of communities. Independent variables Number of shops, hospitals, banks, subway stations, bus lines in 800 meters; Shortest distance to the nearest school; Shortest distance to the nearest park. Dummy Variables Building age, plot ratio, Brand of builder, Housing management fee

10 Research Design Categories Variables Definition Related to the research Policy Housing policy housing and land tax; Limited purchasing right for R, Structural Housing Planning ownership 40y/70y, utility fee Double-limited housing in R, limited area and limited price. Affordable housing, Public rental housing Standards for Residential District Require basic public goods for R; Planning ( GB ) (2002 ) No requirement for RC Area Standards for Residential District Planning defines housing regulations based on number of units. Excluding affordable housing, when calculating the average price of R Rs have all required club goods. A surrogate for quantity and range of privately provided public goods Sales Price tends to include investment-demand as well as usedemand, Building age A surrogate for quality dummy variable for less than 10 years plot ratio A surrogate for quality dummy variable for less than 3 Brand of builder A surrogate for quality and homogeneity dummy variables for 20 biggest builders Housing management fee Be managed by qualified housing managers and to accumulate funds for long-term maintenance. dummy variable for more than 2

11 Research Design Categories Variables Definition Related to the research locational Public goods in Number of subway stations and bus lines in 800 meters transportation aspect Public goods in environmental aspect Shortest distance to the nearest park, river, swimming pool, playground, mountain, square Public goods in healthy aspect Number of hospitals in 800 meters Public goods in commercial aspect Number of shops and banks in 800 meters Public goods in educational aspect Distance to the nearest school

12 Methodology Collect data 2. Collect all the data for these residential & commercial buildings and residential apartments, which includes sales price, building age, plot ratio, brand of builder, housing management fee, public goods, club goods.

13 Methodology Digitize and join table 2. Digitize the area of all the residential communities. Then join attributions from the previous table, such as plot ratio, green ratio, building structure and the bland of the housing estate. Distribution of communities (include residential & commercial buildings and residential apartments)

14 Methodology Create Buffer 2. Create 800 meters buffer for each communities. Select all the public goods in the buffers, and calculate the number of hospitals, banks and so on for each buffer. 800 meters buffer for each communities

15 Methodology Classification 2. Digitize all the schools in Haizhu district, and classify them into club goods and local public goods. Distribution of schools in gated communities Distribution of local schools

16 Methodology Classification 2. Digitize all the parks in Haizhu district, and classify them into club goods and local public goods. Distribution of parks in gated communities Distribution of local parks

17 Methodology Edit attribute table and export data 2. According to the research design, import the number of public facilities calculated in the buffer to the attribute table. Then export the layer and all the data into a shape file.

18 Methodology Use Geoda to do spatial regression GeoDa consists of an interactive environment that combines maps with statistical graphics, considering spatial data in the regression. It is widely used in economic analysis. First of all, create new project from the shape file which contains the spatial information, and then add an attribute table in a.dbf format which contains the statistical information. The attribute table can be edited inside GeoDa. At last, create distance-based spatial weight to do spatial regression. GeoDa can produce histograms, box plots, and scatterplots to conduct simple exploratory analyses of the data.

19 Methodology Use the regression method to analyze the coefficients 2. The empirical Model is: 3. ln(p) = α 0 + α 1 ln(n_shop) + α 2 ln(n_bank) + α 3 ln(n_hospital) + α 4 ln(n_station) + β 1 T + β 2 T*DIST_SCHOOL+ β 3 T*DIST_PARK + λ k + ε 4. Where: 1. P = real property price in RMB (obtained by deflating nominal transaction prices); 2. N_SHOP = the number of shops in 800 meters; 3. N_BANK = the number of banks in 800 meters; 4. N_HOSPITAL = the number of hospitals in 800 meters; 5. N_STATION = the number of bus stations and subway stations in 800 meters; 6. T = an event dummy variable that equals 1 if the public goods are club goods and 0 otherwise; 7. N_SCHOOL = the number of schools in 800 meters; 8. N_PARK = the number of parks in 800 meters; 9. DIST = distance from the community in meter; 10. λ k = a set of structure dummies indicating the characteristics of the community; 11. α i and β j = coefficients to be estimated; and 12. ε = error term

20 Results 1. Coefficients for sales price 1. Note: The dependent variable is sales price; Coefficients of the structure dummies are not shown here; The coefficients represent the mean change in the response variable for one unit of change in the predictor variable while holding other predictors in the model constant; and the t statistic is the estimated coefficient divided by its own standard error, it means the significant level of the variable.

21 Discussion Based on the data and analysis above, the housing price will be higher if the distance to schools is less. Moreover, if the distance to parks is less, the housing price will be higher too. Most of the club goods are consisted with private schools and parks. Club goods are located within the gated communities. Therefore, the club goods provided by the developer can better server the residents. But the price of housing in good education district are also very high, which may due to the price of the education service supplied by government is lower than that supplied by private companies. So this kind of public goods is better to take charge by local government, and work with private companies. The limitation of this research is lack of the time series analysis. Housing price is affected by many factors, such as the distance from employ center, the distance from downtown. I will include these factors in the further.

22 Answers for the research questions Will the housing price of gated community be more sensitive to club goods or local public goods? It depends on which categories of public goods. By comparing the coefficient of housing price with different public goods, the result will show that the housing market of gated communities are more sensitive to certain categories of club goods than local public goods, and the club goods can be a substitute for centrality in certain aspects.

23 Answers for the research questions What is suggestion for the city governors? All communities are tend to locate near to public goods if they are regulated less. But gated communities in China are required to provide club goods. Will this requirement lead to an efficient use of resources? I doubt it. The suggestions for the city governors are: the guidance for public good management should be set up based on identifying the best manager for each category of public goods, such as private company or local government.

24 References Yoonseuk Woo and Chris Webster (2014) Co-evolution of gated communities and local public goods. Urban Stud : 2539 Chris Webster (2011) Briefing: Cities of clubs. Urban Design and Planning Volume 165 Issue DP1 Fulong Wu (2009) Gated and packaged suburbia: Packaging and branding Chinese suburban residential development. Cities 27 (2010) Fulong Wu, Klaire Webber (2004) The rise of foreign gated communities in Beijing: between economic globalization and local institutions. Cities, Vol. 21, No. 3, p , 2004 Luigi Tomba (2005). Residential Space and Collective Interest Formation in Beijing's Housing Disputes. The China Quarterly, 184, pp doi: /s Werner Breitung (2012) Enclave Urbanism in China: Attitudes Towards Gated Communities in Guangzhou. Urban Geography, 33:2, , DOI: / Chun Zhang, Yanwei Chai (2014) Un-gated and integrated Work Unit communities in post-socialist urban China: A case study from Beijing. Habitat International 43 (2014) 79e89 Basak Tanulku (2010) Gated communities: From Self-Sufficient Towns to Active Urban Agents. Geoforum 43 (2012) Marie Sander (2013) Shanghai Suburbia: Expatriate teenagers age-specific experiences of gated community living. City, Culture and Society xxx (2014) xxx xxx Choon-Piew Pow (2009) Gated Communities in China: Class, Privilege and the Moral Politics of the Good Life. London : Routledge Kevin Lo, Mark Wang (2011) The development and localisation of a foreign gated community in Beijing. Cities 30 (2013) Seong-Hoon Cho, Neelam C. Poudyal, Roland K. Roberts (2008) Spatial analysis of the amenity value of green open space. Ecological economics 6 6 ( )

25 Thank you!