A Comparative Study Of Land Price Estimation Method

Real Estate Industry has become stronger since the Reform and Opening-up Policy was conducted. Recently, the theories of land appraisal have been still at the probing stage in our country; moreover, land appraisal calls for multi-dimensional developments. So the probing into the more scientific approaches is of both theoretical and practical significance.Chapter1introduced background, questions and meanings of this study, and reviewed the related literature on this topic.Chapter2introduced the traditional methods of land appraisal, including Market Comparison Approach, Income Capitalization Method, Cost Approach, Residual Method, Unit Foot Appraisal Method and their application scopes.Chapter3systematically explicated concept, types and pricing models of real option theory, including Binomial Tree, Black-Scholes Model, Samuelson-McKean Model and argued the possibility of using the theory to land appraisal.Chapter4conducted case study and empirical study on272sample lands, and compared their Residual Method value, Samuelson-McKean Model value to the actual prices.Chapter5drew the conclusion of the whole article.