Housing Project Hedonic Price Model of Qingdao Based on Principal Components Analysis

Abstract

Real estate hedonic price method is a way to break down the price of real estate, in order to show the implicit price of all the characteristics (influence factors). When using this method, we need to control a large nember of samples of transaction, and there is no association between these factors. But in fact, there are a large number of samples are difficult to collect completely and the influence between factors is difficult to eliminate. This article introduces the principal components analysis into hedonic price method, in this way can solve the problem above effectively and improve the accuracy of appraisal. This paper collect the housing price data of Qing dao in June 2011. By using the software SPSSv18.0, structuring Qing dao housing hedonic price principal component analysis model. And providing the basis for the appraisal of Qing dao housing price. It will play a reference role in theories and practical application.