An improved method of real estate evaluation based on Hedonic price model

Abstract

As real estate is a heterogeneous good, there are distinctive differences on the characteristics composing the using value of real estate. Evaluating the value of real estate from the implicit price of the characteristics can improve three traditional evaluation methods: market comparative method, income capitalization method, and replacement cost method. Based on the introduction to foreign experience, the paper takes the housing market of Hangzhou city as a case and establishes a housing Hedonic price model. From the model, we get the implicit prices of 18 housing characteristics and the evaluation model of housing value.