Impacts of online shopping convenience and physical retail proximity on housing prices in Shenzhen, 2016–2018

Retail activities are important parts of urban life, but limited empirical research has been conducted to address the changing impacts of physical retail activities and online shopping activities under current growth of e-commerce. This study investigates the impacts of online shopping convenience and physical retail proximity on residential property price in Shenzhen by conducting hedonic price models. The analysis results indicate that home buyers are willing to pay more for better online shopping convenience. By contrast, proximity to physical retail businesses, such as convenience stores and shopping malls, adversely affects nearby residential property price. This analysis gives market players, housing management practitioners and urban planner insights into how online shopping convenience is highly valued by home buyers, and guidance to a more desirable and efficient community design and urban planning in the modern society.