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

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 (1) the impact and scope of NA on housing prices gradually expanded during years. (2) As 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%. (3) The 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. (4) Residential 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.