The value of the urban built environment: An application of hedonic price method in Wuhan, China
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This study uses hedonic price models to explore the implicit prices of the built environment that residents favor in Wuhan, China, where a real housing market has been gradually formed, but micro level factors that affect housing prices within the urban built environment have not been explored. This study identifies 18 housing variables (comprising locational, structural and neighborhood characteristics) to construct the hedonic price model to understand which factors of the urban built environment impact housing prices in Wuhan, China. The research results show that increases in housing prices are strongly related to the locational characteristics. Among these characteristics, the greatest effect on the housing price is distance to the major road along Yangtze River. The next greatest influence is distance to the light rail line, followed by distance to the CBD, the number of stories and the sale year. The study suggests that when the natural resources of water bodies are integrated with other cultural, tourism, and economic resources, they have significant impacts on the housing price. The study also suggests that proximity to the CBD has a positive relationship with the housing price while proximity to light rail line has a negative effect on the housing price within one mile from the light rail line.