The Sustainable-based Impacts of Built Environmental Influencing Factors on Price-rent Ratio: A Case Study in Guangzhou

As an influential sector in the national economy, real estate and the urban economy play an essential role in sustainable economic growth. Sustainable development of a healthy real estate market contributes to improve citizens' quality of life and achieve sustainable urban management. Representing the coupling relationship between housing price and rent, the price-rent ratio is an indicator of the real estate market. The housing price-rent ratio and urban sustainable development are mutually reinforcing. A reasonable housing price-rent ratio will promote the sustainability of the real estate market, thereby promoting the sustainable development of the city; in turn, sustainable urban construction will also promote the rationalization of the housing price-rent ratio, which will have a positive impact on the real estate market. The impact is particularly reflected in the construction of urban infrastructure. Therefore, exploring and comparing factors influencing the price-rent ratio are important for urban sustainability. Regarding the housing price-rent ratio, a myriad of papers has focused on the macro-factors of society or the economy that influence the price-rent ratio. However, there are few studies focus on investigating the micro-level factors of the built environment that influence the price-rent ratio. Some studies have been conducted to uncover the built environment factors that affect the housing price or housing rent separately. But the impacts of the built environment on price-rent ratio have not been studied fully. Such kind of vacancy needs to be filled. However, operating this kind of study could be difficult. Firstly, without a series of housing prices and housing rent records, as well as urban infrastructure data, the analysis could be very hard and unreliable. Secondly, proper a suitable model to describe the relationship between urban infrastructure factors and price-rent ratio, then extract the most influential factors, is hard to design. Many aspects should be put into consideration like multicollinearity of factors and the reliability of the model. Finally, the analysis should be operated from various aspects and find out how urban sustainable construction influences the housing price-rent ratio. Utilizing house transaction data and rent data in 2018 in Guangzhou, this paper gives an analysis of the spatial patterns and influencing factors of housing price-rent ratio in Guangzhou. Firstly, this paper utilized the housing purchase data and housing rental data in November 2018 in Guangzhou, and combined Inverse distance weighted (IDW) interpolation methods to estimate the price-rent ratio. Secondly, the paper employed the quantile regression model to quantify the impacts of built environmental factors on price-rent ratio. Finally, this paper discussed the spatial distribution pattern of price-rent ratio and the influencing mechanisms of urban sustainability construction and price-rent ratio. Moreover, this paper further discussed the bidirectional influence mechanism of urban sustainability construction and housing price-price ratio. Results showed that the price-rent ratio has a dispersed distribution with multiple centers. The highs lie in the suburbs or handed-over areas between newly-built and old built-up parts of the city. The price-rent ratio is mainly influenced by fife services such as leisure and entertainment, shopping centers, sports facility, education resources such as university and school, green infrastructures such as green space and waterfront. Daily Life services contribute more to low-level price-rent ratio and leisure, entertainment and cultural facility contributes more to high-level price- rent ratio. This study will lay a solid foundation for formulating real estates policies within the built environment and helps integrating real estate markets into sustainable urban development activities to achieve urban sustainability.