Study on the Pricing Model of Affordable Housing in Guangzhou, China

Indemnificatory housing is related to our life in China, how to make price reasonable is necessary for its social welfare function. This paper introduces the pricing process of affordable housing and focuses on the demonstration of price-limited housing which is both indemnificatory and commercial. Combined with the cost method and the market method, the pricing model was constructed based on the system: market valuation price---the ratio of house price ---selling price. Taking Guangzhou-- a city in south China-- as the object, the key --price ratio- was calculated according to the data. Reasonable of that model was examined with an example of a house in Guangzhou, China, named FengJingHuaTing. With the expansion of the government welfare project, the study of the pricing model of the purchase type of indemnificatory housing is of great value to the citizens and market.