Study On The Improved Spatial Error Model For The Mass Appraisal Of Commercial Real Estate

With the rapid urbanization in China, the existing financial mode, which is mainly based on the land grants, needs to be innovated. Referred to mature experiences of foreign countries, the government must explore a new and sustainable source of fiscal revenue. Therefore, property tax reform becomes a topic of active discussion. As an important technical support for property tax reform, mass appraisal is an effective technique for implementing the tax base assessment. In recent years, as an important means of macro-control to prevent overheating housing market, administration on the process of housing transaction is emphasized by the central government. Due to these policies, the studies on the mass appraisal of residential properties are more scientific. However, different from the residential properties, the commercial properties have their own characteristics. So we need set up the new method for the mass appraisal of commercial properties.To achieve high precision and reduce the cost of valuation, an innovative framework for commercial real estate appraisal is proposed through the introduction of fuzzy mathematics and econometrics. Meanwhile, based on the technique of Geographic Information System (GIS), we can implement the spatial analysis on the mass appraisal. These study contents the following parts:(1) Improving the real estate appraisal theory. Based on the existing real estate appraisal theory, we introduce the characters of the commercial properties and propose the appraisal principles of the commercial properties. And then, the relationship between the mass appraisal and the single appraisal are discussed.(2) Summarizing the price attributes of commercial properties. Starting from the attributes that influence of general properties, this study systematically summarizes the attributes of the commercial properties. Afterward, the important location attributes and entity attributes of the commercial properties are selected. Furthermore, the GIS is adapt to implement the quantitative analysis for the location attributes and housing prices.(3) Optimizing the weight calculation method. Based on the standard calculation process, we obtained the weights of different properties from the membership calculation and the neartude calculation in fuzzy mathematics. According to the new calculation method, we overcome the weakness of existing weight calculation method which depends on the appraiser experience. And the weight calculation method on different properties is optimized.(4) Developing the new mass appraisal methods for the commercial properties. Through the spatial econometrics, statistics and GIS, the new method is introduced. The fuzzy mathematics approach is adopted to specify the spatial weight matrix (SWM). Additionally, with econometrics, the impacts of the entity and location factors on commercial real estate prices are discussed. Then, the proposed method is implemented to commercial real estate; and we use the Hua Qiang commercial district in Shenzhen for empirical analysis. Experiments demonstrate the accuracy of the assessment results; and the consistency among different appraisal objects is improved. Based on the proposed mass appraisal method and the regular appraisal procedure, we build the mass appraisal system through the computer technology, database technology and GIS. And we use this system to assist the research on mass appraisal.