Hedonic Price Study on Urban Housing: The Case of Shijiazhuang City

Housing is a kind of heterogeneous product; every housing unit includes different characteristic aggregation. Hedonic price theory is an effective method to study the quantitative relation between housing characteristic and price. This paper applies hedonic price theory to the housing market in Shijiazhuang. After collecting and trimming 2075 housing price and characteristic samples in Shijiazhuang city, the paper selects housing structure, location and neighborhood characteristics as explanatory variables, and implements OLS regression to estimate the parameters of the model, then analysises main characteristics that affect residential housing price and attempts to explain the quantitative relationship between housing price and housing characteristics. Based on that, we establish the hedonic model of Shijiazhuang housing market and validate the applicability of hedonic price model.