Analysis of residential product's value based on Structural Equation Model and Hedonic Price Theory
According to Residential Hedonic Price Theory, house price is constituted of all the utilities that it brings to the residents. Any single house price should stand for all its characteristics. Under the impact of global financial crisis and with the economy background gets worse nowadays, the housing industry in China is facing an unprecedented challenge. For many developers, it is important and urgent to see what features are really valuable to the consumers when they choose a house. Thus, a new way of evaluating the residential product's value seems to be very useful now. Based on this, this paper categorizes residential product's characteristics into four parts: location, district, house structure and neighborhood environment, and also measures house value with two variables: price and satisfaction. The author makes full qualitative and quantitative analysis .With the use of Structural Equation Model and AMOS, 100 samples are selected to do a case study. Through this, it illustrates the regression relationship between house value and all its characteristics.