Study On Influencing Factors Of Commercial Housing Price In Wuhan City

With the rapid development of society and economy, residential housing prices continued raise and its speed more than economic growth. It not only brings challenge for the residents’live and work in peace and contentment, affects the quality of people’s lives, but also affects the development of society and economy. Housing prices and its influence factors has become a widespread community concern.As the capital of Hubei Province, the largest city in mid area and the three line of transportation, the residential market’s development of Wuhan City has its own representativeness and particularity. This paper takes Wuhan City as an example, analyzes the theoretical research and empirical combination to influence factors of the commodity housing price.First of all, this paper makes a theoretical study. It analyzes the influence factors of commodity housing price formation mechanism, and then divides the commodity housing price factors into five categories; including natural factors economic factors, social factors, administrative and other factors, all of these factors can affect the residential demand and supply to affect the housing price. According to all analysis this paper builds the model for influencing factors of housing price and then introduces model calculation method PLS.Secondly this paper conducts an empirical study on the influencing factors of commodity housing price in Wuhan City. This paper makes brief analysis in supply-demand state of commodity residential market; found that the supply of residential commodity is slightly lower than the demand. So this paper selects housing price to income ratio, rental sales ratio, vacancy rate and residential expenditure-life expenses ratio to analysis current situation of housing price in Wuhan City. According to the formation mechanism of housing price and Partial Least Squares Regression Model, the commodity influence factors of housing price in Wuhan City was analyzed quantitatively. By choosing11factors including GDP, per capita disposable income of urban residents, urban population, the total investment in real estate development, city changes rate, inflation rate, interest rate, residential land transactions fold, psychological expectation price, financial expenditure and foreign capital use, this paper constructs a price equilibrium model, uses the method of partial least squares regression and predicts influence factors. The results show that selected variables have positive correlation with housing prices. With influential description of inflation, residential land price and psychological expectation price, Wuhan City is in Seller’s market, the demand of commodity housing is greater than the supply. Finally according to the characteristic of commercial housing prices and results of influencing factors in Wuhan City, it proposes the suggestion about how to promote the rational development of residential market and commercial housing price.