A Method for Evaluating Residential Value Based on Value Engineering Theory

On the perspective of value engineering, the residential value is the ratio between housing realizable functions and cost, namely cost quality. High cost quality has become a common pursuing goal of real estate developers and consumers. But during a long time, the price quality is only a qualitative description, lacking quantitative research. This paper establishes an evaluation index system for evaluation of residential value (that is establishment of price quality), and use the theory of value engineering to build a model to proceed quantification. First, function index system and cost index system are set up, and in accordance with different carrier objects of functions, residential functions are divided into three categories: physical function, community function and location function. From the consumer´s point of view, this paper put the cost of house full life circle to divide into four categories: acquisition cost, use cost, management cost, maintenance cost. And then AHP method is used to determine index weight. Each index score rule is given, and basic principles of AHP method are used to do comprehensive assessment for residential value. Finally the application of the model is explained with an example.