The Research on Factors Influencing Housing Price in Shanghai

Abstract

This article aims to identify the factors that may influence housing prices in Shanghai. A multiple linear regression model is used to analyse significant factors based on a sample of 300 from Shanghai in 2021. Under certain assumptions, eleven factors were found to be correlated with housing prices. To assess the data's effectiveness, this study compares the Variance Inflation Factor (VIF) and tolerance levels of these variables. It also considers the incident relations using a scatter diagram and screens for abnormal data through box plots to illustrate the data distribution situation. The findings suggest that loft floor heating and the number of bathrooms may affect housing rental prices; however, the number of bedrooms, living and dining rooms, WIFI, outdoor space area, square meters, use type, and balcony did not show a linear relationship. Overall, fluctuations in housing rental prices in Shanghai can be attributed to the varying influence of these factors.