When Wanda Plaza Comes to the Yangtze River Delta: Will the Land Prices Increase?
Wanda—one of the Chinese real estate sector leading companies claims that the Wanda Plaza is the “heart” of a city. In this chapter, we use the panel dataset of land transactions during the period of 2008–2016 in 109 counties in Yangtze River Delta to test whether the entry of a new Wanda Plaza increases the county-level average land prices. Using the difference-in-difference (DID) strategy, our estimates suggest that a new Wanda Plaza opening increases the price of the industrial land by about 0.1–0.15% and increases the price of the residential land by about 0.22–0.25%.
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