An empirical study on the law of housing spatial distribution based on ratio of house price to rent: Taking Hangzhou city as a case

In general, the ratio of house price to rent (RHPR) is one of the important indicators which uses to measure the bubble of real estate market. In this study, the REPR has been utilized to investigate the law of housing spatial distribution. The approach Kriging was used based on GIS. Taking Hangzhou, a city located in east of China, as a case, the law of housing spatial distribution is revealed. The investigation results show that the housing price is reasonable to 32.66% of the urban housing units. The housing price in the suburb areas presents the potential of bubble, including the area near the Zijingang Campus of Zhejiang University, Qianjiang New City, and the east part of the East Train Station, and the housing units in these areas account for 27.14% of the housing in the whole Hangzhou city. The housing price in the rest areas, covering an area of 40.21% of the city land, has been found unstable with the presence of some risks relating to the change of financial policy.