A Study on the Impact of School District Housing on Real Estate Prices: Evidence from Shanghai Region

Abstract

The paper estimates how the quality of primary school impact on the school district housing based on the repeated cross section data of 11 districts in Shanghai. Mixed OLS model, the paper draws the conclusion:on the condition of controlling the building characteristics and administrative division, city’s key and district’s key are higher than the ordinary buildings 23.7% and 8.9% respectively. “Because the development of the living standards, people pay more attention to their children’s education. For example, a famous allusion was that Mencius mother moved three times. Nowadays, to make their children study in famous school, parents invested heavily to buy school district house. For a while, the price of school district housing goes up fast. Many developers focus on schools not only close to the advertisements of real estate, and schools provide good education by cooperating with the excellent school. The way to change this condition is to balance the supply of compulsory education resources, narrow the gap between the quality of the school. Therefore in the face of hot school district housing market, it is a very important topic. Because the school district housing is just a hot topic in recent years, so the domestic research for the school district housing also is not very thorough and many papers still stay on the theoretical side. And traditional evaluation methods have their limitations. The article based on the OLS model to evaluate the school district housing premium, can not only make up for the inadequacy of the traditional method, but also make the result more accurate.