Research On Real Estate Appraisal Of Commercial Housing Based On Hedonic Model

ABSTRACT:Real estate appraisal is a professional economic activity. As an essential part of the real estate development and management process, real estate valuation has been paid more attention and been widely used in more field. Currently, theoretical innovation and technological development in real estate appraisal are also concentrated in the United States, Britain and other western countries. While China’s real estate appraisal industry starts relatively late, and still remains in the stage of the introduction of western theory and technology. There is rarely a mathematical model for quantitative evaluation, and thus how to scientifically value the price of real estate has become a trend. And it’s an urgent need for China to solve the problem. It has important theoretical and practical significance to actively explore the theory and methodology of real estate appraisal, which lines with international standards and applies to our current system and the real estate market conditions.This paper first discusses the current real estate appraisal approach which are widely used in real estate market, such as market comparison approach, income approach and cost approach. Market comparison approach is the most widely used and acceptable method and other methods are the deformation of the market comparison approach. There are shortcomings in the transaction instance selection, transaction modification and real estate conditions adjustment. Therefore this paper introduces the hedonic price theory, and the establishment of hedonic price model to study the price of commercial housing market. At last, this paper made an example in Beijing commercial housing market. Finally, there is an example which is calculated with the market comparison approach and the hedonic price model. The results indicate that the use of hedonic price model can fully consider various factors affecting on housing prices, resulting in a more reasonable valuation results.