scholarly journals A model to Estimate the Implicit Values of Housing Attributes by Applying the Hedonic Pricing Method

2017 ◽  
Vol 4 (2) ◽  
Author(s):  
TD Randeniya ◽  
Gayani Ranasinghe ◽  
Susantha Amarawickrama
Keyword(s):  
Sri Lanka ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Hedonic Pricing ◽  
Pricing Model ◽  
Urban Neighborhood ◽  
Location Factors ◽  
Property Development ◽  
Housing Attributes

Many scholars focused on the location based attributes rather than the non-location factors in decision making on land prices. Further, new research studies have identified the importance of the non-location attributes with the location factors. Many studies suggest that, many attributes exist which affects the housing price. Since the attributes involved and dominant for a particular case differs from one situation to the other, there cannot be an exact list of attributes. Yet, identification of factors that determine housing price and their relationships and the level of influence have poorly understood in planning and property development in the context of Sri Lanka. This study attempts to address what make householders to decide on housing price and application of hedonic pricing approach to estimate the implicit price of housing attributes in context of Sri Lanka. A sample study of selected fifty (50) single house transactions in Maharagama urban neighborhood area has been utilized to illustrate the applicability of the hedonic pricing model. As a methodology, correlation analysis has been carried out to study the degree of relationship between the housing price and the independent variables. The attributes which correlate with housing prices, the study identified the most significant attributes. A model was developed to estimate the future house price by applying the pricing model which is incorporated with these attributes. A hedonic house price model derived from multiple liner regression analysis was developed for the purpose. The findings reveal that six attributes as design type of the house, distance to the local road, quality of Infrastructure, garden size, number of the bed rooms and property age are contributed to estimate the implicit value of Housing property. The model developed would be used to identify implicit values of houses located in urban neighborhood area of Sri Lanka.

scholarly journals FACTOR ANALYSIS ON HEDONIC PRICING MODEL ON OPEN SPACE AFFECTING THE HOUSING PRICE IN MELAKA AND SEREMBAN

2018 ◽  
Vol 16 ◽  
Author(s):  
M. Zainora Asmawi ◽  
Mohammad Abdul Mohit ◽  
Noorzailawati Mohd Noor ◽  
Alias Abdullah ◽  
Tuminah Paiman
Keyword(s):  
Factor Analysis ◽  
Open Space ◽  
House Price ◽  
Housing Price ◽  
Hedonic Pricing ◽  
Residential Area ◽  
Pricing Model ◽  
Kuala Lumpur ◽  
Hedonic Pricing Model ◽  
The Relationship

Open spaces near residential area often labelled as development constraint since each residential development must provide 10 percent of open space from the total acreage according to Malaysia planning guidelines. Kuala Lumpur has noticeable lost in open space in residential area and this issue might happen with other neighbourhood states such as Negeri Sembilan and Melaka. Therefore, the purpose of this study is to find the resident perspective on the importance of open space while purchasing their housing property. As such, the aim of the research is to study and examine the characteristics of relationship between public openspaces and residential property value using GIS-Hedonic pricing modelling in the selected residential area in Seremban and Melaka. To find the gist of this study, factor analysis has been used to sum the hedonic pricing model output. Seremban and Melaka respondents have chosen the Importance of the House attributes in influencing the house price and Importance of open space following factors in influencing the house price. The research examined the relationship between the open space and house price at selected area in Seremban and Ayer Keroh. As found in the literature reviews, it validates that the relationship established in a positive pattern.

scholarly journals FACTOR ANALYSIS ON HEDONIC PRICING MODEL ON OPEN SPACE AFFECTING THE HOUSING PRICE IN MELAKA AND SEREMBAN

2018 ◽  
Vol 16 (6) ◽  
Author(s):  
M. Zainora Asmawi ◽  
Mohammad Abdul Mohit ◽  
Norzailawati Mohd Noor ◽  
Alias Abdullah ◽  
Tuminah Paiman
Keyword(s):  
Factor Analysis ◽  
Open Space ◽  
House Price ◽  
Housing Price ◽  
Hedonic Pricing ◽  
Residential Area ◽  
Pricing Model ◽  
Kuala Lumpur ◽  
Hedonic Pricing Model ◽  
The Relationship

Open spaces near residential area often labelled as development constraint since each residential development must provide 10 percent of open space from the total acreage according to Malaysia planning guidelines. Kuala Lumpur has noticeable lost in open space in residential area and this issue might happen with other neighbourhood states such as Negeri Sembilan and Melaka. Therefore, the purpose of this study is to find the resident perspective on the importance of open space while purchasing their housing property. As such, the aim of the research is to study and examine the characteristics of relationship between public openspaces and residential property value using GIS-Hedonic pricing modelling in the selected residential area in Seremban and Melaka. To find the gist of this study, factor analysis has been used to sum the hedonic pricing model output. Seremban and Melaka respondents have chosen the Importance of the House attributes in influencing the house price and Importance of open space following factors in influencing the house price. The research examined the relationship between the open space and house price at selected area in Seremban and Ayer Keroh. As found in the literature reviews, it validates that the relationship established in a positive pattern.

scholarly journals Housing Prices in Unregulated Markets: Study on Verticalised Dwellings in Santiago de Chile

Buildings ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 6 ◽  
Author(s):  
José Francisco Vergara-Perucich ◽  
Carlos Aguirre-Nuñez
Keyword(s):  
Housing Market ◽  
Affordable Housing ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Housing Affordability ◽  
Price Formation ◽  
Land Values ◽  
Santiago De Chile ◽  
Data Transparency

Chile faces a housing affordability crisis, given that most of the population is unable to secure a house. While housing prices between 2008 and 2019 increased by 63.96%, wages only increased by 21.85%. This article presented an analysis of the housing price configuration for the main borough in the country—Santiago. The assessment focused on verticalised housing constructed between 2015 and 2019. The article developed an exploratory study on the price of housing in Santiago to generate a diagnosis to identify the role played by expectations of profitability when configuring price. Based on the information generated, we sought to contribute to the discussion on public policies that advance the development of affordable housing in central boroughs with high urban value, as is the case for Santiago’s borough of Greater Santiago. We hypothesised that profit expectation of real estate developers plays a key role in the housing prices, and an adjustment in the profit ratios might increase the affordability while keeping the housing market above profitable rates. This research addressed the lack of data transparency in the Chilean housing market with archival research, reconstructing costs and earnings from projects based on official registrations of transactions at the borough level. In Chile, the access to investment costs, land values, yields, and house price formation are not publicly available, even though these factors imply that many households are facing severe difficulties in paying for and accessing decent housing.

scholarly journals AN ANALYSIS OF COMMON APPLICATIONS ON HEDONIC PRICING MODEL IN VALUING ECOSYSTEM SERVICES: SIMILARITIES AND DIFFERENCE BETWEEN EUROPE, US, AND CHINA

2021 ◽  
Vol 8 (1) ◽  
pp. 1-11
Author(s):  
Xuanfei Zhang
Keyword(s):  
United States ◽  
Ecosystem Services ◽  
Real World ◽  
Housing Prices ◽  
The United States ◽  
Hedonic Pricing ◽  
Pricing Model ◽  
Hedonic Pricing Model ◽  
Real World Applications ◽  
The Common

The study made a comparison with the common applications on the hedonic pricing model that valuing ecosystem services between Europe, the United States, and China. By analyzing various reasons impacting housing prices, cultural and historical backgrounds played roles in the real-world applications.

scholarly journals House Prices and Macroprudential Policies

2020 ◽  
Vol 20 (291) ◽  
Author(s):  
Bhupal Singh
Keyword(s):  
Strong Influence ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Macroprudential Policies ◽  
Regulatory Changes ◽  
Downward Pressure ◽  
Level Data ◽  
Housing Assets

This paper examines the efficacy of macroprudential policies in addressing housing prices in a developing country while underscoring the importance of fundamental factors. The estimated models using city-level data for India suggest a strong influence of fundamental factors in driving housing prices. There is compelling evidence of the effectiveness of macroprudential tools viz., Loan-to-value (LTV) ratio, risk weights, and provisioning requirements, in influencing housing price movements. A granular analysis suggests an even stronger impact on housing prices of a change in the regulatory LTV ratio for large-sized vis-à-vis small-sized mortgages, which buttresses their potency in fighting house price speculations. A tightening of the risk weights on the housing assets of banks causes significant downward pressure on house prices. Similarly, regulatory changes in standard asset provisioning on housing loans also influence house prices.

scholarly journals The House Price Dynamics and the Macro-Economy: an Empirical Perspective of UAE

2019 ◽  
Vol 2 (1) ◽  
pp. 28-33
Author(s):  
Yahya Hamad Al Zaabi ◽  
Genanew Bekele
Keyword(s):  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Future Research ◽  
Hedonic Price ◽  
Policy Makers ◽  
Empirical Perspective ◽  
House Condition ◽  
Internal And External Factors

Objective: The paper aims to examine house price drivers in Dubai, addressing the effect of internal and external factors afecting house prices   Design/methedology/approach: Using the Hedonic price model, the study examined the implications of house size (space), the availability of bathrooms, bedrooms, waterfronts, and pool and cell phone towers within residential area as auxiliary determinant factors to housing price within developed cities by using the Hedonic Modelling. Also, study highlight the effect of the green strategies that been followed by developer on the housing prices.   Findings: The study is expected to reveal results with significant ramifications for researchers, practitioners and policy makers. From a policy perspective, there is an obvious interest in understanding whether the price of housing is affected by different attributes differently along its distribution.   Research limitations/implications: The data used in this study could be limited, and depends on information to be provided by the Dubai Land Department. There is a room for future research to include more data (such as on other house attributes such as house condition, plot numbers and configuration).

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (1) ◽  
pp. 63-107
Author(s):  
Charles K. Leung ◽  
◽  
Wai Yip Ma ◽  
Jun Zhang ◽  
◽  
...  
Keyword(s):  
Interior Design ◽  
Hedonic Pricing ◽  
Future Research ◽  
Pricing Model ◽  
Large Dataset ◽  
Hedonic Pricing Model ◽  
High Rise ◽  
Market Values ◽  
Design Variables ◽  
Housing Attributes

How much do the market values of housing reflect its interior design? Does the interior design interact with other housing attributes? By following recent research based on the ¡§graph theory,¡¨ this paper confirms the importance of internal design variables in a hedonic pricing model, which is applied to a large dataset of high-rise apartment buildings in Asia. The evidence is consistent with a simple theory in that developers strategically use interior design to ¡§dilute¡¨ the effect of location, which leads to a form of endogenous multicollinearity. Directions for future research are also discussed.

scholarly journals The Housing Price Bubble In A Suburban Georgia Setting: Using The Hedonic Pricing Model In The New South

2012 ◽  
Vol 28 (4) ◽  
pp. 651 ◽  
Author(s):  
Jason Beck ◽  
Joshua Fralick ◽  
Michael Toma
Keyword(s):  
New South ◽  
Housing Price ◽  
Hedonic Pricing ◽  
Price Premium ◽  
Pricing Model ◽  
Font Size ◽  
Hedonic Pricing Model ◽  
Downtown Area ◽  
Price Bubble ◽  
Historic Landmark

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none;" class="MsoBodyText"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This study applies a hedonic pricing model to the rapidly developing suburban housing market adjacent to the Savannah Historic Landmark District in the downtown area of Savannah, Georgia. Using OLS estimation, the hedonic pricing model yields results clearly tracing out the magnitude of the time-related housing price premium in the suburban market analyzed for the years from 2005 to 2010. The results also control for internal and external housing characteristics that are capitalized into the real sales prices of the housing transactions analyzed.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

Willingness to Pay in Hedonic Pricing Models

2021 ◽  
Author(s):  
David Wolf ◽  
H. Allen Klaiber
Keyword(s):  
Housing Price ◽  
Hedonic Pricing ◽  
Data Availability ◽  
Second Stage ◽  
Nonmarket Goods ◽  
Welfare Evaluation ◽  
Hedonic Pricing Method ◽  
Implicit Prices ◽  
Housing Attributes ◽  
Function Information

The value of a differentiated product is simply the sum of its parts. This concept is easily observed in housing markets where the price of a home is determined by the underlying bundle of attributes that define it and by the price households are willing to pay for each attribute. These prices are referred to as implicit prices because their value is indirectly revealed through the price of another product (typically a home) and are of interest as they reveal the value of goods, such as nearby public amenities, that would otherwise remain unknown. This concept was first formalized into a tractable theoretical framework by Rosen, and is known as the hedonic pricing method. The two-stage hedonic method requires the researcher to map housing attributes into housing price using an equilibrium price function. Information recovered from the first stage is then used to recover inverse demand functions for nonmarket goods in the second stage, which are required for nonmarginal welfare evaluation. Researchers have rarely implemented the second stage, however, due to limited data availability, specification concerns, and the inability to correct for simultaneity bias between price and quality. As policies increasingly seek to deliver large, nonmarginal changes in public goods, the need to estimate the hedonic second stage is becoming more poignant. Greater effort therefore needs to be made to establish a set of best practices within the second stage, many of which can be developed using methods established in the extensive first-stage literature.

CONSTRUCTING HOUSING PRICE INDEX FOR TERRACED PROPERTIES IN JOHOR BAHRU, MALAYSIA

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Wendy Wen Xin Lim ◽  
Burhaida Burhan ◽  
Mohd Lizam Mohd Diah
Keyword(s):  
Price Index ◽  
Housing Prices ◽  
Housing Price ◽  
Hedonic Price ◽  
Property Market ◽  
Price Variation ◽  
Vector Property ◽  
Hedonic Price Analysis ◽  
Housing Price Index ◽  
Housing Attributes

Housing is a country’s biggest asset. Hence, the pattern of the housing price index (HPI) is an important topic to gain insight into the housing market while identifying the prevailing housing issues. The determinants of housing price vary for each city and state based on the different characteristics in each location. Accordingly, HPI should consider the property’s quality differences. Besides, national HPI is insufficient and restricted to the housing price at the state level. Thus, the study focused on constructing a specified HPI model for different cities, districts, and states. Effective HPI can give parties a better idea of the current property market situation and act as an analytical tool in managing the sector. Specifically, the study aims to examine the relationship between the heterogeneity housing attributes and housing prices of the terraced properties in Johor Bahru, Malaysia. Additionally, the study provides detailed information on the key determinants of the housing price variation in Johor Bahru. Hedonic price analysis is useful in constructing HPI, expressing housing price as a function of vector property characteristics. Furthermore, HPI is constructed based on the yearly indices and by pooling the data into certain periods. The results show the percentage of variance explained by the factors of HPI for the terraced properties in Johor Bahru. Correspondingly, the underlying correlation between the tested housing attributes with the housing price is explained through the analysis results.

Sign in / Sign up

Export Citation Format

Share Document