Value Appraisal Research About The Urban Real Estate Relocation Based On The Hypothetical Development Method

As an essential part in urban construction and development, urban real estate relocation influences directly the pace of urban modernization and personal benefits of both household and remover. In recent years, many social conflicts caused by removal are commonly focused on compensation standard. Relocation compensation is based on the urban real estate appraisal according to the《Urban Real estate Relocation Acts of Administration》released by the State Council, which, therefore, makes the removal appraisal just prior to solve the urban real estate relocation disputes. Therefore, as a social concerned topic meanwhile, whether the appraisal outcome is accurate or not is linked greatly to interests removal party concered may have.At present, two dominant removal appraisal methods are Market Comparison and Cost appraisal in our country. But, it is difficult to adopt Market Comparison appraisal approach due to the very few or even no transaction examples in reality. Hence, Cost appraisal approach becomes the most popular way in evaluating. In current real estate market, the price obtained by employing Market Comparison approach is much higher than the one estimated from Cost appraisal approach for the same appraisal object. In this way, an interest loss for relocation household will be caused inevitably if using locally stipulated appraisal method or available approaches. Ground on all above mentioned, Hypothetical Development method is advanced to evaluate the price of real estate still in the process.In Hypothetical Development method, the value of the appraisal object after its development has been completed deducting the normal development costs,taxes and interests etc. is taken as its reasonable value. Not only can Hypothetical Development method estimate the highest rates the remover can afford, but also this method can manifest the relocation household as a participant in sharing the constructive achievement.Based on practice of appraising the real estate relocation in cities, this article, after illustrating and analyzing the theory and background on how urban real estate relocation and its corresponding appraisal produced, proposes to adopt Hypothetical Development method during the appraisal practice. Moreover, on the basis of above mentioned theory, a GM (1,1)Model is constructed taking a real...