Do bank loans and local amenities explain Chinese urban house prices?

Using Chinese city-level data from 1999 to 2012 and considering geological, environmental, and social diversity, this study suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Besides, local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans and amenities on housing prices are interacted rather than isolated.