Urban Land Value with Site Density Restriction: An Empirical Study of Beijing, China
With an ideology of setting up a socialist market economy with China’s characteristics, land as one of the important factors of production has been in great need of institutional mechanism to be both utilized effectively and efficiently. Since early 1990s, the reform of urban land market in an economy of transition in China was initiated from plan-controlled to market-led orientations. This paper examines the relationship between land price and site density restrictions such as floor-to-land area ratio (FAR) and other factors with empirical analysis on public land leasing in Beijing, China. The effectiveness of land use regulations and government intervention in the market is also studied as to provide policy implications for China and other countries in transition to market economy.