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In the 2010s, the return of the state in land expropriation and urban (re)development processes has resulted in a new type of neighborhood in urban China, namely, displaced villagers' resettlement community (DVRC). The government aimed to promote the social integration of land-lost peasants into urban society by placing DVRCs in areas with good accessibility and mixed land-use development. However, some studies found that the territorial stigmatization of DVRCs as poor and uncivilized neighborhoods has caused the depreciation of houses in DVRCs. Does this disamenity effect spill over to nearby houses? If yes, does this disamenity effect vary across space? This research uses Chengdu, the largest city in Western China, as the case study. A big data approach is used to analyze the list price of 53,969 houses and their housing attributes. An ordinary least squares hedonic model is used to determine the effect of the proximity to DVRC on house price at an overall statistical level. Then, a mixed geographically weighted regression model is used to examine the spatial heterogeneity of this disamenity effect. The empirical results support the account that DVRCs depreciate nearby houses. In these underdeveloped suburban areas, the proximity to DVRCs is positively associated with housing prices because of its function as a proxy for the prospective proximity to urban service facilities. These findings indicate that the government trial of social integration promotion is not that successful and help identify areas that require interventions the most to mitigate socio-spatial segregation. • This return of the state in land acquisition and urban (re)development has resulted in DVRC in China. • DVRC are examined to depreciate nearby housing price by 10,440 CNY. • The disamenity effects of DVRC on housing price is heterogeneous across space. • Two typical areas where the proximity to DVRC appreciates housing price are identified. • The trial of promoting the social integration of land-lost peasants through mixed-use developments was unsuccessful. [ABSTRACT FROM AUTHOR]

In the 2010s, China witnessed a return of the state in land acquisition and urban (re)development processes. This return of the state has resulted in a new type of neighborhood, namely displaced villagers' resettlement community (DVRC), which is well built by the government and located close to middle-income communities' amenities. The displaced villagers are entitled to full ownership and sale right of their resettlement houses. However, these houses in DVRCs are depreciated in the housing market. This study examines and explains the housing depreciation in DVRCs with a combination of quantitative hedonic models and qualitative field investigations. We explain the housing depreciation in DVRCs through the lens of territorial stigmatization theory. Based on the findings, we argue that the housing depreciation DVRCs is caused by the entrenched prejudice towards the peasantry in Chinese society. This prejudice has mutated into territorial stigmatization of DVRCs as uncivilized and poor neighborhoods. This paper innovatively bridges territorial stigmatization thesis and housing price research to provide a new method to reveal territorial stigmatization in the context of rising market approach to social housing. It contributes to the debate on whether social mix development can avoid the stigmatization of social housing communities. • China witnessed a return of the state in land acquisition and urban (re)development processes. • This return of the state has resulted in a new type of urban neighbourhood, namely displaced villagers' resettlement community (DVRC). • This study examines and explains the housing depreciation in DVRCs. • The depreciation phenomenon in DVRCs is caused by the entrenched prejudice towards the peasantry in Chinese society. • This prejudice has mutated into territorial stigmatisation of DVRCs as 'uncivilised and poor neighbourhoods' [ABSTRACT FROM AUTHOR]