A Study on Non-Traditional Factors Affecting Price Differences of Real Estate in Different Regions-Based on 35 Chinese Cities Panel Data

Abstract

Based on the panel data of 35 Chinese cities from 2002 to 2015, this paper establishes a cluster analysis index system and divides the real estate market into developed markets, developing markets, and backward markets. The static fixed effect model is used to analyze the non-traditional factors that cause price differences in the real estate region. The study finds that medical resources and beautiful environments can significantly increase real estate prices, while educational resources and convenient transportation can significantly reduce real estate prices in developed markets. In the developing markets, convenient transportation can significantly increase real estate prices, while medical resources, education resources and beautiful environments have no significant impact on real estate prices. In backward markets, medical resources can significantly reduce real estate prices, while education resources and beautiful environments have no significant impact on real estate prices. In developed markets, the government should improve the level of education and medical treatment, strengthen the construction of transportation facilities, and rationally arrange the environmental resources in urban areas. In developing markets, the government should rationally plan the construction of transportation facilities. In backward markets, the government should increase the investment in medical resources so as to control the real estate prices within a reasonable level.