Research On Main Influencing Factors Of Urban Residential Land Prices

Since the reform and opening up policy has been putting forward, urban land policy of China has undergone a series of fatal changes with the accelerating of urbanization and industrialization. Land resource in China has become a vital factor which affects social harmony, economic development and welfare. With the further opening of market, capital of land reflects its market value and land market has become an important force for distribution of land resource.In general, land prices are represented by the effect of different combinations of several factors in a city. Scarcity of land which has been brought by urbanization results in the rapid growth of land price. Therefore, analysis and research on the price of urban residential land and difference between cities could effectively solve the problem of land shortage, and facilitate the development of regions while fulfilling the increasing of social welfare and harmony. This article focuses on the study of the factors that affects the land price, the degree of these factors and its influences in different regions.The article includes five parts. The first part is a introduction. The second part is the basic theory. The third part is the about the land price model. The fourth part researches the determinants of urban land price in China through empirical analysis. The fifth part is the conclusion of this article.The first part introduces the background, research method, sources of data, structure and research scope of this article.The second part is the basic theory. First, I introduce the partial equilibrium and general equilibrium theory of price. It could theoretically support the mechanism that land price is determined by the demand and supply of land. Second, location theory is provided to support the mechanism that land price is affected by location factors. Third, hedonic price theory has been raised to support the mechanism that consumers would affect the land price. The third part is about the model. First, I explain the factors which would affect the land price from the aspects of demand and supply. Then variables are selected according to the principles. Finally I choose two of the models for this article on the basis of three general ones.The fourth part is empirical analysis which research on the factors mentioned above. The article firstly makes a regression analysis on the panel data of the sample consisted of 25 cities, which find out the main factors of land prices in general. Then the sample is divided into two groups by economic regions. Regression analysis is made again to compare the differences of factors that affect the land price of two groups of regions.We get the following conclusion from the analysis above:(1) On the national level, the population density, degree of economic development and commercial development, the level of real estate investment and location of cities are key factors that affect the land price. The reason why impact of environmental factors on land price is not significant needs further study.(2) The factors of population density and transportation which affect the land price have been more significant on the eastern part of cities comparing to the national level. The effect of other factors is relatively insignificant. The price of the land for commercial use is decreased 0.03 units. The influence degree of GNP is decreased 0.01 units, and the way of influencing degree is increased 15.1 units per degree of influence. Freight units is dropped 0.48 units, and the influence degree of population density is increased 1.29 units.(3) The factors which affect the land price in the central-western part have changed significantly. First, the significance of factors is different from the ones of national level. For example, road space per capita, total freight per capita and population density have become less significant, while savings balance per capita becomes significant. Second, the degree of factors have also changed, such as the impact of commercial land prices falls 0.12 units, as real estate investment per capita increases 0.03 units(4) to conduct comparative analysis shows that residential land prices in central and western cities and the main factors affecting the overall factors in Chinese cities are quite different not only significant factors in the range of central and western regions were significant factors significantly less than the national The corresponding factors; the same time, the same factors influence the performance of the different levels. This is a better fit reality, residential land prices in central and western regions mainly by their level of economic development impact of the region, and population and traffic problems a minor role. Two cities with the same factors, the difference in their degree of influence on the different cities are different. And two cities have different factors. Such as per capita road area of cargo per capita, population density have significant effects on the eastern city. The average savings balance has significant effects on Midwest Cities.