||This paper seeks to investigate the determinants of land value within Hangzhou China.
There are two main goals that the research paper will attempt to address. The first
is to build upon existing research on land pricing in terms of the theories outlined
by the monocentric city and hedonic pricing models. Second, the paper will use a dataset
of Hangzhou land sales transactions between the years of 2003 and 2011 to investigate
the possible existence of “luxury residuals” among commercial and residential land
parcels. After evaluating the data with OLS Regressions, the results suggest that
both environmental and convenience-‐based amenities have significant influence on
pricing. Nonetheless, due to the presence of large residuals, while the regression
results offer important insight on the impact of amenities, the extent to which Chinese
consumers value certain amenities is not fully captured by these results. Rather,
a number of case studies of outliers are used to fully examine the influences of these
amenity variables in driving such extreme prices. The results support the hypothesis
that China, located at the bottom of Kuznets environmental curve, values amenities
at extreme levels as a result of scarcity.