Development of the conceptual model for estimating apartment sales price

Abstract

In this study, factors affecting the apartment sales rate were selected through review of existing literature and expert advice. Then, the weight of each influence factor was calculated through the survey. In addition, causal maps of each factor on the prevalence rate were drawn to understand the influence relationship of each influential factor. Finally, this study proposes a new apartment sale price calculation method that correctly applies the weights of the influential factors. First, the influencing factors were classified according to apartment size, residential environment, surrounding environment, apartment characteristics, and social environment at the time of purchase. According to the survey results, the main-factors that have the greatest impact on the apartment sale rate are analyzed as surroundings environment, and the main-factor that have the least impact are analyzed as apartment size. Finally, this study proposes a method of estimating the apartment price in the order of ‘evaluating each factor, standardization of score using formula, standardized score summation, and determine sale price’. It is important to set the sensitivity of each factor.