To grasp the factors affecting real estate prices, we must first have the following four ideas:
Various factors affecting real estate prices have different directions: some factors reduce real estate prices, while others increase real estate prices.
Various factors affecting real estate prices have different degrees of influence on real estate prices: some factors have greater influence on real estate prices (that is, real estate prices fluctuate with this factor), and some factors have less influence. However, with different periods, different regions, or different types of real estate, those factors with greater influence may become factors with less or no influence; On the contrary, those factors that have less influence may become the main factors.
The relationship between various factors affecting real estate prices and real estate prices is not the same: some factors have the same influence on real estate prices, that is, with the change of this factor, real estate prices increase (or decrease); Some factors increase (or decrease) the price of real estate with the change of this factor in one case, but decrease (or increase) the price of real estate with the change of this factor in another case; Some factors will increase the price of real estate from a certain angle, but will reduce the price of real estate from another angle. The final impact on real estate prices is determined by these two aspects.
The influence of some factors on real estate price can be measured by digital model, but the influence of more factors on real estate price is intangible. Although it can be felt, it is difficult to express it by mathematical formula. As for their influence on real estate prices, it is mainly judged by the appraisers' long-term accumulated rich experience. Therefore, real estate valuation must rely on scientific valuation methods, rather than simply applying some calculation formulas. The calculation needs to be based on the comprehensive analysis of factors related to real estate prices, and the calculation results often need to be further revised after the comprehensive analysis of factors affecting real estate prices.
There are many and complicated factors that affect the price of real estate, which usually need to be classified. For the convenience of discussion and analysis, the factors affecting the real estate price are divided into the following categories: supply and demand, own conditions, environmental factors, population factors, economic factors, social factors, administrative factors, psychological factors, international factors and other factors. Various influencing factors also include some specific influencing factors. The following is an analysis of various factors affecting real estate prices. It is worth mentioning that many influencing factors are not completely independent, but when analyzing the influence of one factor on real estate prices, it is assumed that other factors remain unchanged, although it is impossible to remain unchanged in real life.
I. Supply and demand situation
Supply and demand are the two final factors that form the price. All other factors will affect the price, either supply or demand. The price of real estate is also determined by supply and demand, which is positively related to demand and negatively related to supply. If the supply is fixed and the demand increases, the price will rise; If the demand decreases, the price will fall. If demand is fixed and supply increases, prices will fall; If the supply decreases, the price will go up. The supply and demand of real estate can be divided into the following four types:
Overall supply and demand of real estate in China.
B. the overall supply and demand of real estate in this area.
The overall supply and demand of such real estate in China.
The overall supply and demand of this kind of real estate in this area.
Due to the immovability of real estate and the difficulty of changing the use function, the supply and demand situation of this kind of real estate in this area is the main factor that determines the price level of a real estate. As for the relationship between supply and demand of other types of real estate, whether it affects the price level of the real estate and the degree of influence depends on the infection of these supply and demand conditions.
Second, its own conditions
The quality of real estate itself is directly related to its price. The so-called own conditions refer to those factors that reflect the natural physical state of real estate itself. These factors are as follows:
1, location
All kinds of economic activities and life activities need the location of real estate. The location of real estate directly affects the economic benefits, life satisfaction or social impact of its owners or users. Therefore, the real estate prices in different locations vary greatly. Whether it is located in the city or the countryside, the central business district or the residential area, the street corner or the backcourt, facing the sun or facing the sun. Especially for urban land, its price is almost determined by its location.
Real estate prices are positively related to location. The location of commercial real estate mainly depends on the degree of prosperity and the state of frontage. The location of residential real estate mainly depends on the surrounding environment, peace, convenient transportation and distance from the city center. Among them, the requirement for the villa is to be close to nature, with excellent environmental quality, and living in it can guarantee a certain degree of privacy. "One thousand dollars short" is always a truth for business, but it is a misunderstanding for building villas. The location of industrial real estate usually depends on its industry nature. Generally speaking, if its location is conducive to the transportation of raw materials and products, waste treatment and power acquisition, its price will tend to be higher.
On the surface, the location of real estate is a geometric concept, but in fact it is not a simple geometric concept, but the sum of natural factors and human factors associated with a specific location. Therefore, the location of real estate is different from natural geographical location and socio-economic location. Although the natural geographical location of real estate is fixed, its socio-economic location will change, which may be caused by the formulation or revision of urban planning, traffic construction or diversion, or other construction. However, when the position of real estate changes from bad to good, the price will rise again; On the contrary, the price will fall.
2. Geology
Different types of buildings have different requirements for foundation bearing capacity, and different land bearing capacity is also different. The address condition determines the bearing capacity of the land. The address is solid and the bearing capacity is large, which is beneficial to the use of buildings. In urban land, especially in the case of high-rise development of modern urban construction, geological conditions have a great influence on land prices. Land price is positively related to geological conditions; Good geological conditions and high land price; On the contrary, the address conditions are poor and the land price is low.
3. Topography
Topography refers to the ups and downs of the ground on the same piece of land. Topography refers to the relationship between this land and adjacent land, especially the relationship between this land and adjacent roads, such as being above or below the road surface. Generally speaking, the land is flat and the land price is high; Uneven land and low land price; Other things being equal, the real estate price with high terrain is higher than that with low terrain.
4. Contact area
Two plots of land in the same location will have different prices because of different areas. Generally speaking, the price of land that is too small to be used economically is lower. The relationship between land price and land area is variable. Generally speaking, the sensitivity of the urban center to the size of the area is higher, and the suburban or rural areas are lower. The suitability of land area varies with different regions and consumption habits. For example, if a local market generally accepts high-rise buildings, then the use value of large-area land in this place is higher than that of small-area land, so the price of large-area land will be much higher than that of small-area land. On the contrary, if the local market can only accept small-scale buildings, the price of a larger area of land will not be very different from that of a smaller area of land.
5. Land shape
Whether the land form is regular or not also has a certain impact on the land price. Land shapes are square, rectangle, triangle, diamond, trapezoid and so on. Land with irregular shape is generally low in price because it cannot be effectively used. After land adjustment or redrawing, the use value increases and the land price rises immediately. Land price is positively related to land shape: if the land shape is regular, the land price will be high; If the land shape is irregular, the land price will be low.
6. Sunshine
There are two kinds of sunshine: natural sunshine and sunshine influenced by human factors. The relationship between real estate price and sunshine has the following characteristics: on the one hand, it is positively related to sunshine; On the other hand, it is negatively correlated with sunshine. Generally speaking, the price of a house (especially a house) sheltered by a huge building or other things around it must be lower than that of the same house without shelter. From the impact of residential orientation on its price, we can also see the impact of sunshine on real estate prices.
7. Ventilation, wind direction and wind power
Under normal circumstances, the stronger the wind or the place where frequent windstorms occur, the lower the real estate price. The relationship between real estate prices and wind direction is obvious in cities. Real estate prices are generally higher in windward areas and lower in downwind areas.
8. Temperature, humidity and rainfall
The extreme surplus or extreme poverty of the three are not conducive to production and life, so it will lower the real estate price. Combined with precipitation and topography, its impact on real estate prices is more obvious. Although the terrain is low-lying, if the precipitation is not large, it is not easy to accumulate water, so the terrain has little influence on the real estate price, except in areas with high groundwater level; On the contrary, if the precipitation is large, the terrain has a great influence on the real estate price.
9. Periodic natural disasters
Where there are natural periodic disasters, the land use value is bound to be very low, or even impossible to use. However, once this kind of land is built with reliable flood control projects, it will no longer be affected by periodic disasters, and its price will gradually rise. Even because it is close to rivers, lakes and seas, it can obtain special conditions, such as scenery and waterway transportation, so the price of this kind of land is higher than other land.
10, architectural appearance
The appearance of buildings, including architectural style, style and color, has a great influence on real estate prices. Where the architectural appearance is novel and beautiful, which can give people a comfortable feeling, the price is high; On the other hand, if it is monotonous and dull, it is difficult to arouse people's strong desire for enjoyment or even suppress nausea, then the price will be low.
1 1, building orientation, building structure, internal pattern, equipment configuration, construction quality, etc.
Third, environmental factors.
Environmental factors affecting real estate prices refer to those physical factors around real estate that have an impact on real estate prices. The factors in this regard are:
1, acoustic environment
Where there is a lot of noise, the price of real estate is bound to be low. In quiet places with low noise, real estate prices are usually higher.
2. Atmospheric environment
Whether there is odor, harmful substances and dust in the area where the property is located has a great influence on the property price. The real estate prices near chemical plants, slaughterhouses, wineries and toilets are low.
3. Hydrological environment
The pollution degree of groundwater, ditches, rivers, lakes and oceans also has a great influence on the nearby real estate prices.
4. Visual environment
Whether the things placed around the building are messy, whether the buildings are coordinated, and whether the landscape formed by parks and greening is pleasing to the eye have an impact on the price of the building.
5. Sanitary environment
How clean and hygienic the situation is also has an impact on real estate prices.
Fourth, the population factor.
The demand subject of real estate is people, and the quantity and quality of people have great influence on real estate prices. The influence of population factors on real estate prices can be divided into three aspects: population, population quality and family size.
1, population
The relationship between real estate price and population is very close. As far as a country is concerned, so is a region or a city. Especially in cities, with the increase of migrants or floating population, the demand for real estate will inevitably increase, thus promoting the rise of real estate prices. In densely populated areas, generally speaking, the demand for real estate is greater than the supply, and the supply is relatively scarce, so the price is often higher.
2. Population quality
People's cultural and educational level, quality of life and civilization can all cause changes in real estate prices. With the development of human social civilization and cultural progress, public facilities are bound to be more and more perfect and popular, and the living environment is bound to be spacious and comfortable, which is enough to increase the demand for real estate, thus leading to the rise of real estate prices. If the residents in a region are of low quality, complex composition and poor order, people will not want to live here, and the real estate price will inevitably be low.
3. Family size
Refers to the average family population of the whole society or a certain area. Changes in family size, even if the total number of people remains unchanged, will also cause changes in the number of residential units, thus causing changes in the number of houses needed, which in turn will cause changes in real estate demand and affect real estate prices. Generally speaking, with the miniaturization of family size, that is, the decline of average family population, the price of real estate tends to rise.
Verb (abbreviation of verb) economic factors
The economic factors that affect the real estate price mainly include: economic development, savings, consumption, investment level, fiscal revenue and expenditure and financial situation, prices (especially building materials prices), construction labor costs, interest rates, residents' income and real estate investment.
1, economic development
Economic development shows that investment and production activities are active, and the demand for factories, offices, shopping malls, houses and various entertainment facilities is increasing, which leads to the rise of real estate prices, especially land prices.
2. Price
The relationship between real estate prices and prices is very complicated. Under normal circumstances, prices generally fluctuate, and real estate prices will also change accordingly; Other things being equal, the percentage of price change is equivalent to the percentage of real estate price change, and the trend of the two should be the same.
As far as a single real estate is concerned, the change of price can cause the change of real estate price, such as the rise of building materials price, which will lead to the increase of construction cost, thus pushing up the real estate price.
In the long run, the rising speed of real estate prices is higher than that of general prices and national income.
3. Residents' income
Usually, the real increase of residents' income indicates that people's living standards will improve accordingly, which will promote the increase of real estate demand and lead to the rise of real estate prices. If the income of residents increases, it is the income of low-and middle-income people, and the demand for residential real estate increases, which will push up the price of residential real estate. If the income of residents increases, it is the income of high-income people and has little impact on real estate prices. However, if the remaining income is used for real estate investment (especially speculation), it will inevitably lead to changes in real estate prices.
Social factors of intransitive verbs
1, political stability
Political stability refers to the stability of the existing regime and the conflicts between political parties and groups with different political views. Generally speaking, political instability means social unrest, which affects people's confidence in investment and home ownership and leads to low real estate prices.
2. Degree of social security
The degree of social security refers to crimes such as theft, robbery, rape and murder. In the area where real estate is located, if such crimes often occur, it means that people's lives and property are not guaranteed, resulting in low real estate prices.
3. Real estate speculation
Real estate speculation, in short, is the act of buying and selling real estate in different periods by taking advantage of the fluctuation of real estate prices and making profits from the price difference.
Generally speaking, the impact of real estate speculation on real estate prices should appear in the following three situations:
Leading to an increase in real estate prices;
Leading to a decline in real estate prices;
Play a role in stabilizing real estate prices.
When the real estate price is rising, speculators who expect the real estate price to rise further snap up and form a false demand, which will undoubtedly promote the real estate price to rise further. When the situation is the opposite, speculators who expect real estate prices to fall further will sell real estate in succession, thus prompting real estate prices to fall further. When the real estate price is low, speculators who have the psychology that the real estate price will rise in the future buy real estate in order to sell it when the real estate price rises in the future. In this way, speculators will buy real estate when the demand for real estate is small, leading to an increase in real estate demand; When the real estate price rises, speculators sell real estate, increasing the supply of real estate, thus stabilizing the real estate price.
4. Urbanization
Generally speaking, urbanization refers to the concentration of population in cities, which leads to the increase of urban real estate demand and the rise of urban real estate prices.
Seven. Administrative factors
The administrative factors that affect the real estate price refer to the systems, policies, regulations and administrative measures that affect the real estate price, mainly including land system, housing system, real estate price policy, changes in administrative subordination, special policies, urban development strategy, urban planning, land use planning, tax policy, traffic control, etc.
1, land system
The land system may have the greatest impact on land prices. For example, under the traditional land system in China, it is forbidden to buy, sell, lease or illegally transfer land in other forms, which may make land rent and land price simply non-existent.
2. Housing system
The housing system, like the land system, has the greatest impact on real estate prices. The implementation of low rent and welfare system will inevitably lead to low real estate prices.
3. Real estate price policy
There are two kinds of real estate price policies: one is high price policy; The first is the low price policy. The so-called high-priced policy generally refers to the government's laissez-faire attitude towards real estate prices, or deliberately raising real estate prices through certain measures; Low housing price policy generally refers to the government taking various measures to curb the rise of real estate prices. Therefore, the high-price policy promotes the rise of real estate prices, while the low-price policy leads to the decline of real estate prices.
4. Special policies
In some places, the establishment of special economic zones and the implementation of special policies, special systems and special opening measures will often raise the real estate prices in this area.
5. Urban development strategy, urban planning and land use planning
These have a great impact on real estate prices, especially the designated use, floor area ratio, coverage rate, building height and other indicators in urban planning.
It is embodied in the following two aspects: (1) As far as a piece of land is concerned, it will reduce the land price. (2) Generally speaking, because it is conducive to the healthy and coordinated use of land, the land price can be increased.
6. Tax policy
Direct or indirect taxation of real estate actually reduces the income from the use of real estate, resulting in low real estate prices.
7. Traffic control
The location of some buildings looks convenient, but in fact it is not convenient and is restricted by traffic control. Some traffic control may reduce the price of real estate, but for other real estate, such traffic control may increase the price of real estate. If trucks are prohibited from passing on roads in residential areas, noise and pedestrian insecurity can be reduced, thus increasing the price of real estate.
Eight, psychological factors
The influence of psychological factors on real estate prices is sometimes a factor that cannot be ignored. There are seven main factors that affect the real estate price: (1) the mentality of buying or selling; (2) Appreciation of taste (personal preference); (3) fashion; (4) Being close to famous houses; (5) Pay attention to the house number, building number or ground number; (6) pay attention to feng shui; (7) changes in values.
Nine. International factors
The international economic, military and political environment also has a great influence on real estate prices. There are four main factors that affect the real estate price.
1, the economic situation is developing well, which is generally conducive to the rise of real estate prices.
2. Military conflict.
Once a war breaks out, the real estate price in the war area will plummet, and people affected by the war will be threatened.
Real estate prices in threatened or affected areas have also declined.
3. Political opposition.
If there is political opposition between countries, there will inevitably be economic blockade, freezing of loans,
Termination of contract, etc. Generally, it will lead to a decline in real estate prices.
4. International competition
This is mainly the competition between countries to attract foreign investment. When the competition is fierce, the real estate price is generally low.
X. Other factors
In addition to the nine factors listed above, there are also some factors that affect the real estate price. For example, sometimes a real estate buyer, out of his own urgent needs, makes him only ask for real estate, thus raising the price.