Abstract: In order to study the impacting effects of government public investment on the commercial housing price, this paper constructs a model of the relationship between them on the bases of the Hedonic Pricing Model. It conducts a quantitative analysis with the cross-section data of 35 cities in China in 2010 and makes a concrete examination of the different effects of each capital variable of the public investment on the housing price. The result shows that different capital variable of the public investment has significant influence on the residential housing price and the different public investment characteristic variable has different degrees of influence on the residential housing price. The public investment has a capitalized effect on the residential housing price. The government should make appropriate public policies and real estate policies, so as to distribute reasonably this part of value capitalized into the commercial housing and to play a role of regulating the housing price.

Key words: public investment; hedonic pricing model; residential housing price