Merger of Two Developed Districts: Uncertainty Channels and Housing Price Dynamics

District consolidation (DC) is increasingly being used as a strategy to optimize urban governance and resource allocation. This study examines the housing market effects of the 2020 Chongchuan–Gangzha DC in Nantong, China, using microlevel property resale data and a difference-in-differences framework. Our findings show a 6.6% decline in housing prices and a 10.1% increase in time on market, indicating a significant erosion of both prices and market liquidity postconsolidation. The merger of two similarly developed districts, both small in territorial scale, may raise uncertainty about growth opportunities. We identify an uncertainty channel through behavioral patterns, such as more frequent price adjustments by sellers and a preference for properties near established amenities. Proximity to amenities (e.g., subways, schools, hospitals, and malls) significantly mitigated price declines, with each additional amenity within a 1 km radius reducing the negative impacts by 0.3%. We argue that managing this uncertainty through transparent communication about future development plans and strategic investments in amenity-poor areas is crucial for stabilizing housing markets during such transitions.