This paper investigates the impact of soft power on urban housing prices with panel data 35 large and medium cities in China during 2007—2011.Considering the inherent link between urban soft power and hard power，this paper applies principal component analysis to construct a comprehensive index of soft power，establishes the twostage regression model，and uses the panel data GMM method to estimate the impact of soft power on housing prices.The study finds that，in 35 large and medium cities of China，the soft power has significantly positive effects on urban housing prices，and the influence gradually decreases from the east to the west cities.Nationwide，the soft power has significantly positive influence on urban house prices.And the role of soft power on the regional housing prices varies in extent.Apparently，the social humanities，ecological environmental quality and traffic conditions all have significant influence on urban housing price，so increasing importance attached to the urban soft power determines the residential choice of the urban population in China.