The analysis on investment value of real estate market based on discounted income model

Currently, the real estate market of China is just in the critical period that the purchaser, bargainer and the administrative authority are in the tripartite game playing. Among that, whether the market price of the real estate is over than its intrinsic value has been the bone of public contention. Under such circumstances, according to the rental of real estate in a certain city before and after Mar.17(th).2005, we evaluated the price of the city's real estate based on discounted income method from normal condition and the extreme condition without considering the cost subtraction, made a comparison between the evaluation price and market price and conducted judgments on the investment value of the city's real estate. Then, we analyzed the variances of the real estate price after the debut of national macroscopic control policy. The result indicated that the current market price of the city's real estate is over than its intrinsic value, the general level of the real estate price of the city will stably increase in a relatively long time for the future, and national macro-control policy still cannot restrain the upward tendency of the real estate price.