The Hedonic Price Analysis Of Urban Village Rental Houses

As an indispensable complement for the primary and secondary markets in the real estate industry, the residential rental market is rapidly developing under the background of housing commercialization, house-price deseasonalization and population urbanization. As a newly emerging force in this area, the urban village rental housing market, especially, plays an increasingly important role in meeting the habitation demand of low-income groups and resolving the basic living and employment problems of the people without land in urban villages, and its function has already attracted common attention from both relevant government sectors and scholars.However, scholars focus mostly on the negative influence the urban village phenomenon brings. We lack the research into the rental level, especially the influence of rental housing characteristics on the rental level. In this paper the writer is going to make some empirical study on the single market and market segments of the rental housing industry, focusing on the urban villages and by using the hedonic price theory, in order to meet the demand of bettering the urban village rental housing market and serve for the urban village reconstruction.The writer is going to, firstly, sum up the research findings home and abroad on the influential factors on rent and give a brand introduction of the hedonic price theory. On this basis and taking into consideration the characteristics of the urban village residential rental market, the writer will build the hedonic price model of the rent of the urban village residential properties and will make some empirical study. The empirical study is divided into two parts.The first part is on the single market. In this part, the writer is going to research on the hedonic price, the influence of the hedonic price, the hedonic price elasticity and the marginal price of the rent of the urban village residential properties, respectively in the linear form and in the logarithmic form. The second part is on the market segments. In this part the writer segments the single market into two market segments. They are urban village residential rental market and the residential rental market in the surrounding cities of urban villages. The writer is going to build two hedonic price models for these two market segments and make a comparison on the hedonic price differentiation and the hedonic price elasticity differentiation of these two market segments, based on the fact that market segments do exist in the urban village residential rental market, which is verified by the Chow tests.According to the empirical study, the writer comes to several conclusions thereinafter. First, characteristics affecting rents include architectural features, neighborhood features, location features and other features. Second, in comparison to the linear form, the logarithmic form is more persuasive applied to the hedonic price model of the single market rents. Third, market segments do exist in the regional house-leasing market in the urban villages of Hangzhou, which are respectively the urban village residential rental market and the residential rental market in the surrounding cities of urban villages. Forth, the hedonic price differs in these two market segments. Fifth, the hedonic price elasticity differs in these two market segments.The originality of this paper is displayed not only in its systematic carding of the hedonic price research findings home and abroad of the residential rental market, its reasoned choice of characteristic variables of the rental houses, its enlargement of the subject range to include the urban villages, its research made both in the single market and in the market segments, its confirmation of the influence of characteristic variables on rents, but also the reference it can provide to the other scholars who also care about the rental level of urban village rental houses.Meanwhile, the findings of this paper are practical in making polices to accelerate the urban village reconstruction, such as setting the monetary compensation and temporary dwellings standards, and making innovations in the urban village transformation. Besides, the results can provide some pricing reference to the lessors and lessee in urban villages, and are even applicable to the personal, enterprise and social investors in their decision makings.