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Cross-border shopping accessibility and housing rents: A case study of HK residents flocking north to Shenzhen

Year: 2025
Type: article
Abstract: Since the reopening of the border in 2023, Hong Kong (HK) residents have been flocking north for weekends due to the cost-effective commercial offerings. This study investigates the extent to which accessibility to Shenzhen commercial spaces affects HK's housing rents. The Difference-in-Differences (DID) method was utilized to infer the marginal implicit price of cross-border accessibility in the HK rental market. Treatment houses within 34 km of border crossings experienced an approximately 3.51 HK$ per square foot extra increase in rent, confirming the positive and non-linear net effect of cross-border accessibility. One standard deviation increase in accessibility was related to an approximately 0.65 HK$ per square foot extra rent increase, of which the magnitude ranked only second to floor (height) and number of rooms. Therefore, the convenience of shopping in Shenzhen has become a non-negligible factor appreciated by specific HK households when renting houses. Traditionally less-preferred residential areas have seen increased demand, indicating that when interregional economic ties strengthen, the impact of cross-border accessibility on the real estate market in neighboring cities can be substantial. Our findings provide a timely and valuable reference to inform interregional policies and transportation infrastructure investments that foster economic integration while accounting for the consequent spillover effects on local markets.
DOI: 10.1016/j.jum.2025.08.005
Language: English
Open Access status: gold
Estimated APC paid: $1,200
OpenAlex ID: W4414013569
FWCI: 0.947
Cites: 82
Cited by: 1
Related to: 10