This study investigates whether significant price differentials exist for otherwise comparable houses positioned on either side of district boundaries. A spatial regression discontinuity model is developed to explain the administrative boundary effect of housing prices through differences in development quality among various districts. The findings show that differences in the level of comprehensive economic and social development between districts are an important reason for differences in housing prices and the emergence of boundary effects. The spatial differentiation of housing prices on either side of a boundary is consistent with the comprehensive development quality of districts. Moreover, the difference in high-quality educational resources among different development factors holds the greatest explanatory effect on the administrative boundary effect of housing prices. The key remaining explanatory factors, in descending order of importance, are population density, employment density, the presence of first-class hospitals, and average fiscal revenue. These findings offer insights into potential strategies for balancing development in rapidly growing cities.
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