The Changzhou land auction in 2017, before the auction first fire, many attention, many people are curious about what is the relationship between the floor land price and housing prices? As a home buyer, is it possible to predict the future rise and fall of Changzhou house prices from the floor land price, budget the developer's profit margin, and then effectively avoid blind home buying behavior!
What is the floor area price? How is it calculated?
Floor price, also known as the price per unit of floor area, is the average price of land per unit of floor area, specifically, according to commercial, residential, industrial and other uses are assessed separately for a certain period of time the average price of the right to use the construction land at a point in time and by the people's government of the city, county and above the average price of the right to use the state-owned land announced.
The formula for calculating floor land price floor land price = total land price ÷ planning floor area
Floor land price is also equivalent to the value of the land unit price and planning volume ratio divided. Where the planned floor area is equal to the value of the multiplication of the land area and the plot ratio.
From the above formula, it can be seen that the relationship between the floor area price and the plot ratio is negatively correlated, which means that the higher the plot ratio, the lower the floor area price will be, and vice versa, the higher the floor price will be. Therefore, the floor area price is more indicative of the land price than the land unit price, and can also be an important indicator for us to judge the plot ratio of a neighborhood.
What is the relationship between the floor area price and the final selling price of a house?
The floor area cost represents the cost of land included in the selling price of a unit of a project at the time of sale. The final selling price of a home includes the price of the land, so the price of the land that a developer spends when acquiring land will be used as a reference for the final selling price of the home.
The price of land is the cost of the land on which the house is built, but in addition to the cost of land, there are also the cost of construction and safety, taxes and fees, marketing costs, etc. Based on these costs, we can basically estimate how much the cost of the price of a project, and the final selling price of the project will be in the range of what it will be.
The final selling price = floor land price + construction cost price + developer's profit
Here, the floor land price and construction cost price are relatively transparent, before purchasing a house, to your expected price and the sales department to give a comparison of the price of the house, it will be more clear that the project is worth to buy the house.
(The above answer was posted on 2017-03-01, please refer to the actual current relevant housing policy)
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