Study On Influencing Factors Of Urban Residential Land Price Using Hedonic Price MODEL

In recent years, with the deepening reform of the system of paid use of state owned land and the promotion of urbanization, China’s real estate market has developed rapidly and greatly promoted the demand for the urban land, "Di Wang" emerged frequently during this time. Residential land price, due to close contact with the commodity housing price and related to people’s basic life and the people’s livelihood, has attracted wide attention from all sectors of society. Study on the influence factors of residential land price has become the focus of the academic circles. Because of the hedonic price model has unique advantages in the study of the microscopic structure of the land market, the domestic and foreign scholars extensive applied this model to the real estate field. Through quantitative analysis of the influence factors of residential land price, which can provide scientific basis for the government to improve the level of land management and layout of infrastructure, at the same time, provide a meaningful reference for the investment decision of land developers.This paper chooses Shanghai, where the maturity of land market is comparatively high, as the research object. Based on the literature review, to determine the micro influence factors of residential land price, summarizes the main function and the estimation method of hedonic price model. Finally, a hedonic price model for urban residential land was developed taking a sample of 134 cases of pure residential land transfer data in Shanghai that transacted from 2009 to 2014, then the effects of various factors on the residential land price was empirically analyzed. Major conclusions are as following:(1) 10 characteristic factors including land transfer area, floor area rate, CBD distance, near the subway station, landscape facilities, the distance to university and hospital, and time factors, have important influence on the price of residential land in Shanghai. The parcel area, floor area rate, near the subway station, landscape facilities and time factor has significant positive impact on the residential land price; CBD distance, the distance to nearest university and hospital has significant negative impact on the residential land price. And the influence of building density, the number of bus lines, living facilities and educational facilities and other features are relatively insignificant.(2) The empirical results show that, per unit area of land price rise 0.096 percent and 0.25 percent for every one percent raise of the parcel area and the FAR respectively; about 0.46 percent rise for one percent reduction of the distance to the city center; about 0.11 percent rise if there are subway stations around the plot in the range of 1500m, also for each additional item with landscape facilities; and price increased by 0.15 percent and 0.13 percent for one percent reduction of the distance to university and hospital, respectively. What’s more, the price level of homogeneous residential land in Shanghai in the year 2010,2013,2014 rose by 17.5%、29.7%、 47.1% compared to 2009, respectively.(3) If we rank these factors according to their absolute effect extent descending, they are CBD distance, floor area rate, distance to university, distance to hospital, near the subway station, landscape facilities, and parcel area. CBD distance has the greatest influence on residential land price, indicate that still exists a distribution pattern of single center in Shanghai, people commonly like to live in very close to the city centre area. Colleges and universities, hospitals, subway stations, landscape conditions have important influences on the residential land price, suggesting that people pay high attention to the quality and the comfortable degree of living life.