Study On Hedonic Pricing Model For Residential Real Estate In The Period Of Investment Decision-making

Since the cancellation of welfare housing policy, the real estate industry is developing rapidly, and gradually become an important pillar of economic growth. With the policy adjustments and market self-regulation, the real estate industry appears features of investment growth stabilized, market demand rationally and prices differentiated. With the real estate profits declining, investment decisions of residential projects is more important, and setting a price for it will affecting the project’s success or not.Paper explores the factors that affect housing prices, and they are divided into three categories: macroeconomic factors, Macro factors and micro factors. Considering the particularity of investment decision-making period and the characteristics of the model, paper establishes the index system include of brand and property services, location, living facilities, transportation, education facilities, environment, project quality, architectural forms and decoration.On the basis of fully understanding the existing pricing methods, paper proposes a hedonic pricing model based on principal component analysis, and then describes the model of conditions of use, functional forms, test methods, models of potential problems and treatment measures.At last the paper selects Taiyuan as the empirical analysis. The results show that semi-logarithmic function fit in the model. Thereby paper obtains a residential real estate hedonic pricing model of investment decision-making period for Taiyuan. The study found location living facilities, education, transport, and project location is more important for investment decision-making phase of the pricing.