Relationship between urban land price and housing price: Evidence from 21 provincial capitals in China

► We examine the interaction between housing price and land price in China for 2000-2005. ► Simultaneous-equations models are estimated using the two-stage least squares method. ► An endogenous interrelationship exists between housing price and land price. ► Determinants of housing price and land price have some differences in two regional markets. ► Results can provide a basis for some government departments to establish related policies.