| In recent years, with the continuous progress of urbanization, the urban population has increased dramatically and land available of the city has reduced. Urban residential density issues that become the focus of attention are re gradually revealed and the government has introduced policies to emphasize intensive land use. On the other hand, with the improvement of people’s living standards, Residents are increasing comfort demands of living environment. But it is directly affected to resident living standards for the environmental and infrastructure problems result from high residential density. Therefore, how to find balance between social needs of intensive land use and the buyers of their own high-quality residential demand and how to develop a reasonable living density indicators and find the optimal residential density range is a worthy problems of further exploration and analysis. Based on such social background, this paper try to find out the optimal residential density based on the housing price.Based on the hedonic price theory, the residential density optimization model concluding floor area ratio and cell size has been constructed. The implicit price in different floor area ratio and optimum cell size are computed by the constructed model by empirical research. The innovation is located in researching residential density optimization on the view of residential property price and solving residential density problem quantitatively by using tools like the data acquisition software and statistical softwareFirstly, the author widely read the domestic and foreign literatures to find the meaningful research directions about the optimization of housing density the relationship between residential density and house price. Secondly, based on the analysis of correlation theory, the influence mechanism about the radiation effects of residential density on housing price is discovered by theoretical analysis of the concept of residential density, characteristics and constraints. Thirdly, according to our country housing market conditions, residential characteristic variables are selected and residential density optimization model on the base of housing price is constructed based on hedonic price model which is through mathematical analysis to verify the reasonableness of the optimization model.Finally, data are collected in Shanghai and the model results are analyzed, obtained the implicit price in different floor area ratio and optimum cell size. Judging from the whole market, the optimization of cell size reaches 1543 sets and the optimization of land area is 144579m2. Optimization range is between 134366m2 and 150576m2. Floor area ratio increases 1 unit, residential unit price reduced by 11.6%. In contrast to different market segments, the author discussed the different performance of residential density in decision-making basis for the government and developers. |