Valuation Of Real Estate Using Hedonic Pricing Model

With the rapid development of urban economy,the status of real estate in daily life and local finance is becoming more and more important.In recent years,the Kunming real estate New Deal frequency,the government's large-scale assessment demand and the real estate industry information integration development,causes the existing traditional appraisal method the use malpractice frequently to reveal.How to carry out the real estate batch evaluation more efficiently and more accurately is a problem that the assessment circle needs to ponder.The hedonic pricing model has the characteristics of simple operation and accurate result,overcomes the subjective factor in the artificial estimation,and can calculate the implied price of the real estate characteristic factor more accurately.Using the hedonic pricing model and the traditional market method and the income method,the variables considered in the model are more comprehensive,which overcomes the shortcoming of the evaluators ' empirical modification;Compared with the cost method and the hypothetical development method,the new real estate value,development cost,related tax and profit can be saved,which reduces the influence of the future real estate policy and market change on the evaluation of the price,and reflects the thinking of quantitative analysis.In order to establish the hedonic pricing model of Kunming city housing,firstly,this paper systematically sums up the development of the theoretical research and empirical research on hedonic price at home and abroad,discusses the applicability of the model to Kunming real estate evaluation,and provides a new perspective of quantitative evaluation.Secondly,three kinds of characteristic variables of building,neighbourhood and location are selected,and the residential sample data are marked and quantified by different function forms,in order to successfully construct the Kunming housing hedonic price theory model.Finally,by comparing the results of the basic model,the half logarithm model and the logarithmic model,we can find that the logarithmic model has the best regression effect,and a total of 11 variables enter the model.The model extracts three architectural characteristic variables,the construction area has the biggest influence to the house price,the influence of the decoration degree is the smallest,the location characteristic variable extracts two,is the CBD distance and the traffic route respectively;The neighborhood characteristic variable enters the model the number of the most,a total of five,among them the park green space influence is most,Also reflects the high demand for living environment of Kunming residents.The characteristic value derived from the hedonic pricing model can provide the relevant planning suggestions for land planning departments and real estate developers,and it has a wide application prospect in the field of real estate evaluation.