The Study, Based On Differences In The Level Of Induced Demand Model Of Urban Residential Land Price

In our country, the situation of the urban land price is east higher than west and the south higher than north. But for a single urban, some west city's land price is higher than the east city's. At the same time, some north city's land price is higher than the south city's. So we can't judge the level of land price only depend on the location of the city. Then the object of this paper is to find out which factors influence the level of urban land price, and the author focus on the residential land.Using the result of foreign scholar, combining the situation of our country, the author set a derived demand model to explain the reason of the inter-city land price differences. The first level residential basic price of land from 96 cities are available from internet. Then the author modify the data depend on the meaning of the basic price of land. The modified basic price of land can be used to express the land price level of residential site. After then, the author used linear function to set up a derived demand model of residential site, and got the influence factors of the interurban residential site price differences.The main conclusions and new ideas of this paper are as follows:(1) There are five influence factors determine the interurban residential site price differences. They are the investment of real estate development, gross domestic product, the density of population, average wages bill of full-employed staff and workers, average residential area. And the investment of real estate development is the most important factor. Then the government can control the increase of residential land price by control the increase of the investment of real estate development.(2) The influence factors which determine the interurban residential site price differences are different for the different area. Except the investment of real estate development, per capita annual disposable income of urban households & the density of population are the influence factors of interurban residential site differences for the west area. And gross domestic product & per average residential area are the influence factors of interurban residential site differences for the east area. At the same time, the investment of real estate development has different influence for the different area.These conclusions can provide criterion for the government to control the residential site price level, for the developer to choose a city which is fit to invest, and of the family to choose a city which is fit to reside in.There is few research of the determination of the interurban residential site price differences from the point of view the supply and demand. So the author just had a try to test that if the derived model can fit to Chinese land market. The future study can be targeted at such aspects as the optimization of the model function, the selection and quantization of the factors, in order to explain the influence factors of interurban residential site differences better.