Research On The Effect Of The Subway On Housing Prices

With the acceleration of urbanization process, the increasing population challenges the city’s transportation system by bringing about problems like congested traffic, road accidents and air pollution. The subway has become a major means to relieve the traffic pressure for its high speed, punctuality, large volume and environmental friendship. Meanwhile, the construction of metro networks raises the real estate values dramatically and increases the economic development around the metro stations. So, it is of great practical value to quantitatively analyze the impact of the subway on the price of its surrounding real estate. According to such analyses, the government can launch efficient policies on urban planning, land use, and financing of the metro construction; the land agents can make a practical development scheme; the residents can achieve the optimum decision on property purchasing and investing.Different cities vary in economic development, urban planning, transportation etc. So the impact of the metro on the real estate price in one city is distinct from that in others. In this paper, we take Harbin Metro Line 1 as the object to study the impact of the subway on the real estate price the along the metro line in Harbin.In this paper, based on literature review, firstly,we introduce the background,the purpose and the significance, we also introduce the method and the frame of the paper. Secondly,we introduce the influence factors of real estate value and further explores the principles of real estate value increment. The third chapters bring the hedonic price model, one kind of economic model(HPM)for quantitatively analyzing the effects of the subway on the real estate value,then examine this model’s effectiveness and applicability,and eventually choose HPM as the basic model to solve the problem brought by this paper.Finally, according to the data of real estate around Harbin Metro Line 1 and an analysis instrument SPSS,the relationship between urban subway and round real estate price was confirmed by HPM model.Meanwhile, we analyzes the different influence of different distance and different real estate market.