Study Of Factors Influencing The House Pricein Xi'an

Real estate industry as the pillar industry of national economy has undergoneunprecedented repaid development since the housing system reform in 1998, however, a rangeof problems also arise, especially the ones concerning people's livelihood resulting from thesoaring housing prices in recent years,thus arousing wide concern of the public and makingthe controversy over housing prices and real estate industry more intensively.The present study is intended to analyze the main factors affecting housing prices fromthe internal housing hedonic price and external supply and demand of houses through the casestudy of commercial housing in Xi'an. Firstly, the author introduces the theories about supplyand demand of housing market and its features as well as the supply and demand condition inXi'an. With the conclusion that demand far outstrips supply in Xi'an housing market, theauthor then analyses the main factors affecting housing price. Finally, the author makes aquantitative analysis by using questionnaire and the data obtained from Xi'an StatisticalYearbook, by applying metrology software Eview3.0 and by building housing-price–featuremodel and demand-supply model. The result shows that the factors affecting housing hedonicprice include: location, total stores of housing, the distance of CBD and transportationconditions, while the factors affecting housing price include: a family's disposable income,population size, building costs, floor space under construction and completed floor space.Among them, there is a positive relation between locations, total stores of housing,transportation conditions, a family's disposable income, population size and building costs,while other factors are negative relation.The quantitative analysis of the factors affecting housing price supplies some valuableinformation for the government to make policies, the developers to make decisions and theconsumers to purchase houses.