Pricing Methods And Its Application For Rental Office Properties In Beijing

With the rapid development of the real estate market in Beijing, the cases concerning Beijing office properties are now on the sharp rise. Therefore, real estate pricing work has been regarded as the indispensable professional and technical work in real estate operation. Drastic competition demands reasonable price to meet the needs of the market and the consumer's demands. So it's more and more important to master the pricing models and methods. Basing on the practice of pricing of Beijing Chengjian Plaza, the paper tends to perform a profound study and analysis of the pricing model and methods of Beijing rented office properties. Firstly the paper comprehensively expounds constitutes and characters of price of rented office properties. Compare with the price of other commodities, the price of rented office properties has unique particularities. There are some influencing or determining elements or factors, such as external factors and interior factors. But the controllable pricing factors for enterprise are limited to the pricing goals, the operating cost, the estimate of demand and competition. In addition, the rented price is restricted to the rate beteen rent price every month and selling price. Now this rate is round about 1:90. Subsequently, the paper discusses the familiar pricing models. There are three main kinds of pricing model of Beijing rented office properties. These are Cost-Based Pricing, Competition-Based Pricing and Demand-Based Pricing. In more details, there are many pricing methods, involving the Target-Costing Pricing, the Going-Rate Pricing, the Target-Return Pricing, the Perceived Value Pricing and so on. Also there're some other particular methods, such as Skimming Pricing, Market-Penetration Pricing, Internal-Reference Pricing. The paper also enumerated the policies of pricing, mostly involved Macro Pricing Policy, Process Pricing Policy and Pricing Executive Policy. It's vital for enterprises to choice feasible pricing methods according to their pricing goal, and so as combinatorial pricing methods. Futhermore, based on these theoretic pricing methods,the paper introduced the process and methods of pricing of Beijing Chengjian Plaza for the sake of an ulterior expatiation. Lastly, through study of the real estate pricing methods, the main existing problems as well as their idea of solution have been revealed in the paper.