Research On Chengdu Residential Pricing Based On Hedonic Model

Housing price formation bases on the traditional theory of cost theory and equilibrium theory. According to the cost theory, developers first price the commodity housing, and then gradually form a market price according to the market equilibrium theory, while hedonic price theory directly price from the perspective of consumption. Hedonic price theory points out that consumer accepts product price not because of the cost of the product itself, but due to the characteristic utility produced by the product's characteristic attribute accepted by consumers. This utility is the embodiment of the value, and it is the response of objective characteristic attribute. Commercial housing price forming mechanism mainly includes three aspects that are life cycle cost theory, market supply and demand equilibrium theory and hedonic price theory, in which cost and equilibrium theory is the most common theory used on the market while hedonic theory relatively less. Of course, housing price may be also affected by internal or external factors, including the influence of economy, society, housing structure and surrounding environment, while these factors will vary with the consumer's acceptance of housing characteristics.By studying on the hedonic price application of commercial housing market, the real housing price can be more accurately reflect. In this paper, combining with the previous research on hedonic price, based on the sample data of Chengdu on hedonic price model for regression, the parameter of hedonic price model is be calculated.First of all, this paper analyzes the problems existing in the real estate market in China through a query for data, and then raises the possibility of the application of the Hedonic model in pricing commercial housing; systemizes the domestic and foreign research status of the Hedonic model; and the research status of application of the Hedonic model in housing pricing. Hedonic price theory is introduced from Europe to China, so the application of commercial housing pricing is more mature in Europe. In China, the research of Hedonic model mainly focuses on housing price, rice price index, coal price index, and so on.Secondly, the application of Hedonic model in housing pricing is based on certain theoretical basis and assumptions, which theoretical basis involves consumer decision theory, production decision theory and market equilibrium theory; while the assumptions includes:first, the heterogeneity of housing; second, the implicit of market; third, the balance of market. Hedonic model, with decades of development, gradually forms a variety of functions that the three most representative forms are linear form, logarithmic form and semi-logarithmic form; each a form's using environment is different and its accuracy of the estimation is also different. Hedonic model in the application process, the most critical step is the selection and quantization of characteristic variable. Characteristic variable uses the expert evaluation method, removing part of the characteristic attribute that has little impact on the hedonic price of commercial housing and compiling a quantization standard table of characteristic attribute. The more effective of selecting sample of hedonic price, the more accurate of the model parameter of the final estimate and more accurate in determining the price of commercial hosing that can be more able to respond to the project's hedonic price. In addition, after the completion of model estimation, the model parameter needs to be tested, which the form of test includes significance test, variance test and co-linearity test.Finally, this paper analyzes the current state of the housing market in Chengdu by combining with the development of housing market in Chengdu. By randomly selecting 50 projects within the Chengdu third ring as the study sample, each project's characteristic attribute is generalized and its characteristic attribute is quantified according to quantization standard table. Using SPSS.17 software combined with the quantitative data on the fitting of three functional forms of hedonic price model, model's parameter is estimated. Through testing, which is significance, and variance and co-linearity test, the final fitting function form, the three models' parameters all meet the requirements.This paper quotes the project Ding Feng-Shui'an Huijing in west second ring road of Chengdu to verify the Hedonic model. This project recently transacts price in around 9500 Yuan per square meter. But the price calculated by the Hedonic model is that, the price calculated by linear model is 9428 Yuan per square meter; the price calculated by logarithmic model is 9897 Yuan per square meter; the price calculated by semi-logarithmic model is 9548 Yuan per square meter. The data tolerance between the hedonic price calculated by Hedonic model and project transaction price controls under 5%, which proves that the three functional forms of Hedonic model all meet the requirements.Hedonic model is a model with high accuracy and rationality, and it has practical significance. This paper's research on Hedonic model has practical significance and can promote the development of hedonic price model in China.