Determinants of Housing Prices in Dalian City, China: Empirical Study Based on Hedonic Price Model

Abstract

Housing price is one of the most popular topics in urban studies. Among all the determinants of housing price, transportation accessibility is an essential factor that people often consider when purchasing a house. Using a semilogarithmic hedonic price model, this paper discusses the effects of structural attributes and accessibility of neighboring destinations on housing prices. The study area targets the core urban area of Dalian city, China. The data used in this study consist of sales prices of commercial apartments and houses and the geographic coordinates of corresponding residential areas. Estimation results of the hedonic price model show that structural attributes and accessibility to neighboring destinations significantly affect housing prices. The most influential factors to housing prices are the location of apartment or house, the nearby quality of higher education resources, and proximity to public transit service. These findings are significant for real estate developers, urban planners, and transportation planners to better understand the real estate market and to promote transit-oriented development.