Research On The Evaluation Method And Its Application For Real Estate Brand Equity

Abstract:The real estate industry is essential for China’s national economy, which plays an important role in promoting the growth of the national economy. In recent years, the real estate industry has witnessed rapid development, the annual growth rate of investment was more than20%.With the rapid growth and high rate of return on investment, there is an increasing number of companies merging into the real estate market, leading to more intensive competition.The market competition has realized a shift from quality and price to brand, which is regarded as the core value of real estate companies. Thus, more and more real estate companies started to change their business strategies. The managers began to pay more efforts to enhance the company’s brand to achieve fast-tracked development. Assessing and monitoring the change of brand value can help to provide scientific reference for building and managing brand.This article firstly clarified the connotation and specificity of the real estate brand and analyzed the forming processed and performance of its value. Then, introduced the evaluation methods of brand value form two different perspectives, including market-based and consumer-based method. On this basis, the evaluation method based on comprehensive perspectives for the brand value of real estate equity was constructed. The method included two parts, including brand profits and brand strength. Respect to the brand strength, this method took both the market performance and consumer attitudes into account. On the one hand, appraisal indicators of the interbrand original seven elements were adjusted to the real estate industry to evaluate the market strength of the brand. On the other hand, the data was collected via questionnaire survey, and then analyzed by exploratory factor analysis to establish the brand strength for consumers. The weights were calculated based on Analytical Hierarchical Process. To verify the feasibility and rationality of this valuation model, this paper chose Longfor Properties to calculate the brand value through the proposed evaluation method and make comparative analysis.