The Application Of The Income Approch In The Assessment Of ABC Department Store Of XX Group

With the establishment and development of market economy, especially theprocess of the land paid to use and commercialization of housing gradually advanced.The real estate market which is treated as the basic elements of the production and lifeis beginning to enter into the circulation of market and the real estate appraisal play animportant role in not only managing the but the normal operation of the real estatemarket and come into effect to all aspects of society Because it provide thecorresponding reference for rent, and also can help investors to make investmentdecisions and became a key means of national macroeconomic regulation and controlreal estate market.As one of the three valuation method of real estate, although Income approach issimple in the basic principle, because our country don’t make clear of the selection ofmethods and principles of Income approach for various parameters which is resultedthat the final result is vulnerable to be interfered by outside. Because of that manyappraisal personnel do not want to use this method. So it is a key factor to solve howto make the current income approach can be used by more personnel, and the result ismore accurate, objective, reasonable, and reveal the long-term value trend of realestate. This paper first reviews the research situation of real estate appraisal at homeand abroad. On the basis of previous studies, explaining the basic meaning of the realestate assessment system and concluded the advantages of income approach tocompare it with market comparison method and cost method of income to find out itsadvantages. Then through the specific cases to achieve the combination of theory andpractice, applying these methods to the ABC department store in the assessment of theproject XX group. By such practice and scope summed precondition of using thismethod, I will put forward several suggestions to improve from the government pointof view, the industry point of view, the rating agencies and practitioners point of viewrespectively.