Firstly, this paper selects 7 factors such as service facility, natural environment, traffic situation and location condition to evaluate Location Advantage Value of Residential Environment (LAVRE) in the urban and suburban areas of Beijing. Secondly, it constructs a LAVRE model to evaluate LAVRE of different parts of in Beijing and analyze its spatial characteristics. Thirdly, based on data of average prices of lots of commercial housings, this paper sets up GIS-based spatial distribution of prices to analyze spatial relationship between LAVRE and housing prices, and the relationship between LAVRE and residential location selecting behaviors. Lastly, it draws conclusions as follows: (1) Integrated LAVRE has a trend of decreasing from the center of the city to its periphery, and shows the feature of circle configuration. This trend is similar to the spatial change of the commercial housing prices, which shows a fact that the spatial distribution of commercial housing prices is directly influenced by the residential environment. (2) As a whole, the difference of commercial housing prices between northern and southern Beijing is similar to that of LAVRE. (3) Spatial preferences of residential location selecting are affected by the location advantage of residential environment. That is, northern Beijing where LAVRE is relatively high is the concentrated area of residential location selecting, and the rate of residents who choose southern Beijing, where LAVRE is low relatively, is lower than other parts of Beijing.