The Application Of Real Estate Price Index In Jinan

Real estate price index is an important indicator of real estate prices. After the twenty-first century, the level of China’s real estate price grew faster and faster. It caused widespread concern in the community and the government has conducted several rounds of regulation to ensure real estate market growing healthy. Real estate price index has guidance for government, developers and buyers. In this paper the world’s most advanced real estate index methodology, hedonic method is used and it regards real estate as heterogeneous goods. Real estate prices in Jinan are used as data in the paper. It is studied from the following aspects:Firstly the paper referenced to real estate price index method of predecessors, analyzed the pros and cons and selected hedonic method to draw up real estate price index in Jinan. Studying the formation mechanism of real estate prices from two aspects:supply and demand, producer prices. It laid the foundation of real estate price index. It also analyzed the hedonic method theory.Then real estate price data in Jinan was collected and was used to draw up Jinan real estate price index. Year growth rate and chain growth rate of Jinan real estate price were gotten according the analysis. The same data was used to draw up Jinan real estate price index by application of median method and average method. It conducted comparative analysis about the three methods.At last main conclusions and appropriate recommendations were gotten according to real estate price index.Possible innovations:Season factors were assumed in this paper and the Jinan real estate price index was completed after excluding season factors. Developers strength and residential type were regarded as hedonic property. The latest and most comprehensive data was collected in this paper from the first quarter in2013to the first quarter in2014.