Research Of Urban Housing Price Based On Hedonic Price Theory In China

Real estate industry has been one of the important industries. Urban housing price is the crucial factor influenced Real estate industry. Urban housing price has close relation to standard of living, and national economic, and becomes one of the focuses that the academia and operation circle pay close attention to. The attribute of heterogeneity brings new challenge to the research of housing price. By analysis of traditional methods, such as cost-method, market-method, income-method, we can see that traditional methods have some differences and limitations. There need a new theory to research urban housing price. It is important to use hedonic price theory to research urban housing price practically in our country. Urban house has the attribute of heterogeneity, because house is composed by different attributes, and different houses'attributes have different in quantity. It is more difficult to manufacture two same houses than two other normal commodities. The research of hedonic price theory can help consumers buy house of good location, high quality, and reasonable price, also can help the administration of urban house price. Hedonic price theory has some advantages, and is a practical method to research urban housing price. On this basis, at the end of this paper I analyzed factors that affect housing price.