The study on villa price volatility of Shanghai with structural equation

In recent years, with the increasing demand of villa, it is necessary to explore the factors affecting the price volatility. This paper selects the most representative city Shanghai as an example, from the perspective of market supply and demand, and uses the structural equation to construct models of affecting price volatility of the villa and then goes on an empirical analysis model. The results show that: the environmental factors, regional development potential and the gap between the supply and demand are the three main factors. Meanwhile, the results demonstrate that different from the housing price volatility, the economy state has less effect on the prices of villa.