The Research on Price Mechanism of Real Estate Based on the Urban Value

City Value refers to the sum of all human labor condensed in the city by the accumulation of investment and construction activities, including the natural endowments of the city, which is the unification of tangible value and in tangible value, of the values of such aspects, as infrastructure, environment, cultural education and socio-economic, and of historical value, the reality and the future value. Provided that City Value is one of the most important factors of composing the value of real estate, it has become a significant variant to explain the overall level of real estate values. This paper applies to empirical research method to find that the relevant theories and methods of City Value can explain the price differences between cities. The comprehensive quality of living in cities, which is also the universal acceptability of the city values, has positive correlation with the city real estate values. All the payment cost of living in city (real estate value) depends on the living qualities, the income and economic development opportunities. In the past old days, the close relationship between the elements of living quality and real estate prices has not paid much attention. And with the development of the city, the quality of life in the process of convergence to a reasonable level would certainly lead to a general adjustment in property prices, which indicates the fact that people attach more importance to City Value and its integrated value of the quality of life, when choosing to live in the city.