Regional Location Of Housing Price Movements Empirical Study

After the spectacular development from 2000 to 2005,the real estate industry began to witness a restructuring during which the price underwent violent fluctuation. Therefore,it is urgent to resort to a scientific approach to analyze the key factor that influences the price change and the index system which accurately reflects the price change of the market,so that the main bodies of the market will be provided the correct information.Location has very obvious impact on the housing price,but there is very little domestic research from the empirical perspective to study to what a degree location has influenced the housing price.Wenhaizheng(2006),Chenjie(2007) etc.have put forward some theories on this issue,but they are limited in the number of the sample data thus cannot give a full demonstration of the above subject.This paper,by collecting the statistics of 13000 data and by using the more popular method of hedonic price,calculates in a more accurate way how the location has influenced the change of the housing price.The data of this article is collected within the period from September 2005 to October 2007,a total of 26 months,and with the research based on the sample data,this paper focuses on the impact of the following influential factors like the distance to the CBD,different circles and districts which has the conclusion that the distance to CBD has some obvious effect on the housing price.With the same distance to CBD,the houses in different circles are different prices.Even with the same distance to CBD and in the same circles,the houses in different districts are different prices.On this basis,we also have a case study base on the small data.And we have also discussed the hedonic price index of controlling the distance to CBD so that an indicator can be depicted to reflect the change of housing price more effectively. Many an interesting conclusion can be drawn from this paper to apply not only to Shanghai,but China's other cities as well.