Practical View For How The Significant Projects Influence The Value Of Real Estat

Under the rapid development of economic of China, the urbanization shows an accelerating tendency. The urbanization process pushes medium and small cities in China to accelerating urban construction constantly. In the process of the urban constructions, a number of significant projects have emerged which can improve the functions of the cities and the urban economy.In the construction process of the major projects, problems such as shortage of funds, difficulties in balancing the earnings and expenses always appear. Meanwhile, the externalities brought by the construction of the major projects are shared by their owners and users, without any contribution to the sustainable development of the major projects. If the externalities of major projects can be transformed to internalities in a certain extent, attracting the private investments in the construction and operation process will be an effective way to solve the problem.The text takes Dalian as the example, using hedonic price model, quantitatively analyze how much the price of real estate projects can influence the products around, in order to promote the integration process of significant projects and the surrounding land and support on the theory for introducing personal investments during the constructions and operations on those big projects.This paper is parted into five chapters. The first chapter is the introduction, mainly discusses the background, theoretical meaning and practical value of the paper, and sum up the research situation for both domestic and overseas; meanwhile, this part introduces the technical route and the main contents and concepts involved in the following discuss. The second chapter is about the relationship between significant project and the surrounding real estate products'value. This chapter mainly analyzes the characteristics big projects of real estate and the important factors which influence value of real estate; also states how those significant projects work on the value of real estate around. The third chapter is model-building based on comparing with several samples existed native and alien, the section studies the applicability for the problem then chooses hedonic pricing model and emphatically introduces hedonic pricing model theoretical basis and method of setting the model up. Chapter four is the practical view for how the significant projects influence the value of real estate around in Dalian. Taking Dalian as an example, separately considering two major projects in different fields, such as the subway, shopping center, this paragraph researches and analysis the hedonic price of the real estate products around the comes out the results of quantitative calculation which are the tested. The fifth chapter is the conclusion and prospect.Through the empirical research, the paper draws the following conclusion:the metro project can affect the real estate products around positively; the effect is measured by the distance between the subway stations and objectives. The distance between the subway station and target gets down every 1%, the value(shows on the price) of living estates get upper for 0.0781%; the value of commercial estate(reflects on rents) increase 0.135%. Shopping center project can also bring more affirmative value to the ambitious real estate which is estimated by the distance between the shopping center and those buildings. The distance shortens each 1%,the living real estate value (shows on the price) increased by 0.068%, commercial real estate value (measured by the rent) increases by 0.091%.Based on the analysis of influence of the subway, this paper contains the research for the shopping center project creatively; this not only expands the applications of hedonic pricing model in China's real estate field, but also provides a reference for the other major projects'affect on the real estate nearby. Additionally, it offers theoretical help for integration process of the significant projects and the real estate around.