Research On The Appraisal Differences Between Market Comparison Approach And Income Approach In The Perspective Of Property Rights

In recent years, with the gradual deepening of China's economic system reform and continuous development of the market economy, real estate industry has been developing and becoming an important part in the development of China's market economy. The Eighteenth National Congress of the Communist Party of China clearly puts forward to promote the development of urbanization, which is bound to promote the rapid development of real estate industry. In the process of the real estate appraisal, market comparison approach and income approach act as the two main appraisal methods; but differ a lot in the appraisal results. So how to identify the major factors affecting real estate appraisal results differences and how to quantity the impact degree on appraisal results become the key problems to be solved.Based on property rights theory, land supply and demand theory, Marx's land rent theory, this paper illustrates the main factors affecting the real estate appraisal results differences with market comparison method and income method, which are: Integrity of property rights, market factors, and supply-demand relationship. In the perspective of the integrity of property rights, it focuses on how the integrity of property rights affects the residential rental price. This paper adopts empirical research method, which expects there being a positive relationship between age and the rent-to-price ratio and there being a reverse relationship between remaining useful life and the rent-to-price ratio. The integrity of property rights is considered as the proxy variable of remaining useful life, and we collects average price, rental price, age, remaining useful life, total stock, plot ratio, greening, school level, nearest distance from the subway station etc. of 87 housing district in Tianhe District, Guangzhou city. Then, we should estimate building area of the residential average price, and calculate residential rental price per unit.In the end, taking the internal relations between integrity of property rights and rent-to-ratio as entry point, the remaining useful life as a proxy variable, rent-to-ratio as the explained variable, and age, stock, floor space, plot ratio, greening ratio, provincial first class schools, subway station(within 500 meters) as the explanatory variable, this paper conducts quantitative analysis of impact degree of integrity of property rights on appraisal results differences. With multiple regression method and micro data of Tianhe District, Guangzhou city, we test the relationship of the integrity of property rights and appraisal results differences. In addition, according to the brief results analysis of an empirical study, it shows the integrity of property rights can shorten the appraisal results differences effectively. Points and suggestions are also put forward on how to shorten appraisal results differences to ensure objectivity, fairness on the real estate appraisal results.