Abstract: We propose a new price based method for land grading and benchmark land price evaluation.Vector-grid hybrid model is used to dicide the assessment cells.Firstly,we use trend surface analysis model to eliminate abnormal samples.Then shortest path distance is used instead of Euclidean distance to do the interpolation of sample points.After the overlay analysis,we do some statistical analysis to decide the land grade and get the benchmark land price for each grade.At last,we take the city of Shanghai as an example to show the practicality of our method.