Housing characteristics and hedonic price: Analysis based on hedonic pricemodel

Because of the heterogeneity of housing product, hedonic price model is widely applied to study urban housing market. Based on theoretical analysis, an empirical study was made for housing market of Hangzhou City with hedonic price model. The hedonic price theory mainly included two parts: Lancaster's partiality theory and Rosen's characteristic market equilibrium analysis. By collecting 278 housing data in the Xihu Section of Hangzhou City, a housing hedonic price model was set up with 15 factors as housing characteristics. The model's coefficients were estimated after multinomial-regression analysis by using SPSS10.0 software. Thus 6 implicit prices of the main housing characteristics were obtained and 9 housing characteristics were classified into three grades according to their importance. Statistical test and analysis of model results show the model is valid and reasonable, and can been used to explain the local housing price.