Hedonic Price Method In The Preparation Of The Application Of The Real Estate Index

In recent years, with real estate prices continued to rise, real estate prices wide attention by the whole society, accurately reflect changes in real estate prices will not only help government departments to develop policies and scientific decision-making, but also to real estate development companies based on this information adjust the development and management activities. Because the heterogeneity of real estate products, using the general commodity price index methodology reflects changes in the prices of real estate there is a deviation, and the current use of the relevant departments are still similar to the general commodity price index methodology, the study of real estate goods for Price Index method has important practical significance.This paper studies the hedonic price method in the real estate price index compiled application. Review of relevant research papers in international literature and on the basis of clear concepts, analyze the factors affecting the real estate prices, introduced price index methodology and principles of hedonic price method and the hedonic price method applied some of the details. Finally as an example of Wuhan, application of hedonic price method to draw the city the second quarter of 2008 to the first quarter of 2009, real estate price index for four quarters, and with the official index using the general method for compiling the results were compared and analyzed based on Hedonic real estate price index prepared than other methods to more accurately reflect the conclusions of the real estate price changes.