The Study Of Residency Hedonic Price Model In Urban Real Estate

City is the consequence of the development of human society in a long term. Urban residence is one of indispensable elements for production and management in cities. With the development of the market economy, urban residence, which is the important resource, can only be optimally allocated under the control of market mechanism. The price for urban residence is the core of the urban real estate market. Therefore, it is very important for us to study the influencing factors and the functioning mechanism of the urban residence price.Because house is some kind of heterogeneous merchandise, and there are obvious differences among the residency characteristics, which built up the use value, foreign scholars usually get into the research through models, from the point of hedonic price. While domestic scholars do their qualitative study from the points of the cost, the benefit, and the market competition.Till now, none of domestic sholars investigated and experiential researched the quantitative relationship between the characteristics and prices in real estate, by the preference of consumers, such as location, building structure, neighborhood environment etc. How to apply the hedonic price theory to analyse and build the residency hedonic price model is the problem to be solved in the paper.The thesis systematically summarized the research dynamics of the hedonic price theory and model. Former researches indicate the hedonic price theory was mainly composed of two parts, Lancaster's preference theory and Rosen's characteristics market equilibrium analysis; the residency characteristics are mainly divided into three classes: structure characteristic, neighborhood characteristic and location characteristic. On the basis of that, 28 residency samples, which were on sell in the same time and the same market, were adopted and 27 characteristics were chosen as the independent variables in the model. Through applying factor analysis and principal components analysis,the sum of the variables were reduced to 8. Half logarithm function was adopted to estimate parameter imitation and the residency hedonic price model was set up.The study on the residency hedonic pricing was just beginning in our country, so the research of this thesis will be quite significant. Nevertheless, the experiential research of this paper is limited to a sub-market and the range of thesamples is not wide enough. The reliability of the conclusion should be checkedon next step. The research in the future can be the optimation of the modelfunction, application of the hedonic price model, and the method for marketsegment.