The Method Of Housing Setting Price Based On Hedonic Model

Recently, housing price has not only aroused common people's concern, but also been the focus to academic research and practical work. Thus it has great significance in theory and practice to study housing price.The real estate, due to its fixed district and position, durability and heterogeneity, etc, distinguishes housing price and method of setting price from common goods. Court (1939) , analyst of American auto industry, was the first man to use hedonic price model to study the heterogeneous and durable consumables. Drawing on hedonist philosophy for reference, Court proceeded from attributes of automobile, and finally formed the hedonic price model for the automo(?)ile price. In the 20th 60, 70's , with the great development of Hedonic Price Model in theory, the model has been widely applied in setting price and quantitative analysis of heterogeneous and durable consumables. However, because it is difficult to collect accurate statistics and market quotations, domestic scholars mainly carried on qualitative analyses from the supply-demand relationship, the composition of housing price and housing policy, etc, and few are engaged in quantitative studies, especially by hedonic price model. From the literatures which could be consulted at present, it could be found that most scholars only considered individual attributes of housing, ie structural attributes, positional attributes, neighborhood relationship, etc, and ignored the influence of extensive attributes on housing price when they analyzed housing price by Hedonic Price Model. Therefore, the formed price model lacked dynamic characteristic, and because of the anticipatory features of the setting price, some unknown value of variables in the formed model caused the usability of model to be bad. In view of these problems, the article proceeded with the determination of housing price, and put forward the concept of individual and extensive attributes of house by combing with the principle of Hedonic Price Model. The close analyses of the relationship between attributes and housing price have made good preparations for the quantitative analyses of housing price. In the part of the qualitative analyses, based on the qualitative analyses, the author proposed the two-step modeling thought, and formed a theoretical model for the housing price inKunming. In addition, the author has put forward the anticipatory method of the extensive variables to make the important supplement for the applications of model in the part of empirical analyses.The research about the hedonic price of the housing has just made the running at home, and this dissertation is an exploration research in certain meaning. The experimental research is only limited to the city of Kunming, and the time span of samples is not too long, so the applicability and the dependability of study conclusions remain to be examined. It can carry on more experimental research in the future on the choice and measure of variables, selection and optimizing of model form, the comparisons of market segment method and the applications of hedonic price, etc.