scholarly journals International Real Estate Review

2013 ◽  
Vol 16 (3) ◽  
pp. 296-322
Author(s):  
Damrongsak Rinchumphu ◽  
◽  
Chris Eves ◽  
Connie Susilawati ◽  
◽  
...  
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Explanatory Power ◽  
Metropolitan Region ◽  
Hedonic Price ◽  
Price Model ◽  
Lot Size ◽  
Price Increases ◽  
Property Prices ◽  
Property Price

This paper aims to evaluate the brand value of property in subdivision developments in the Bangkok Metropolitan Region (BMR), Thailand. The result has been determined by the application of a hedonic price model. The development of the model is developed based on a sample of 1,755 property sales during the period of 1992-2010 in eight zones of the BMR. The results indicate that the use of a semi-logarithmic model has stronger explanatory power and is more reliable. Property price increases 12.90% from the branding. Meanwhile, the price annually increases 2.96%; lot size and dwelling area have positive impacts on the price. In contrast, duplexes and townhouses have a negative impact on the price compared to single detached houses. Moreover, the price of properties which are located outside the Bangkok inner city area is reduced by 21.26% to 43.19%. These findings also contribute towards a new understanding of the positive impact of branding on the property price in the BMR. The result is useful for setting selling prices for branded and unbranded properties, and the model could provide a reference for setting property prices in subdivision developments in the BMR.

scholarly journals Property Price Attributable to Subdivision Neighbourhood Designs: Hedonic Pricing Model Approach in Bangkok Metropolitan Region, Thailand

2020 ◽  
Vol 7 (3) ◽  
pp. 37-47
Author(s):  
Damrongsak Rinchumphu ◽  
Thidarat Kridakorn Na Ayutthaya ◽  
Riduan Yunus
Keyword(s):  
Hedonic Pricing ◽  
Metropolitan Region ◽  
Price Model ◽  
Policy Makers ◽  
Analysis Process ◽  
Property Price ◽  
Suitable Property ◽  
Variation Explained ◽  
The Government ◽  
High Level

The purpose of this paper is to determine whether the property price is caused by the subdivision neighbourhood designs in the Bangkok Metropolitan Region (BMR), Thailand. A total price model is developed during the analysis process. The model provides a greater understanding of the significance of the subdivision neighbourhood designs that are related to property pricing. This paper is based on data collection from 50 subdivisions across the BMR area. The hedonic pricing approach is used to develop the models. The semi-log models are developed on 1,182 samples of property sales located in eight zones of the BMR. The independent variables include general bundles of property characteristics and the subdivision neighbourhood design items. There are two major findings in this study. First, this study provides a suitable property price model for subdivision development in the BMR. The model presents the high level of R2 at 0.948. The model confirms that all classical hedonic variables are statistically significant to the property price. Furthermore, the additional alternative variables for the subdivision neighbourhood design items can improve the level of variation explained by the model. Second, this study finds that the average property price attributable to the subdivision neighbourhood design is about 20.24 % of the total property price. The components of the subdivision neighbourhood design items consist of project characteristics, recreation features, social facilities, and transportation system design. The model should support knowledge of the design’s impact on the property price for the Government or policy makers on making appropriate policies for urban and environmental management. The model provides a guideline for developers on appropriate property selling-prices for subdivision development in the BMR. The new understanding of the property price attributable to the subdivision neighbourhood designs support suitable decision making on new subdivision development in the BMR

On Hong Kong’s High Land Prices

2017 ◽  
Author(s):  
Yue Chim Richard Wong
Keyword(s):  
Demand Management ◽  
The Public ◽  
Land Prices ◽  
Price Increases ◽  
Property Prices ◽  
Management Measures ◽  
Public Pressure ◽  
Property Price ◽  
Short Run

Demand management cannot curb property price increases when demand continues to grow faster than supply. Punitive measures only bring temporary political relief for governments faced with mounting public pressure angrily demanding that something be done. Punitive demand management measures sends the wrong messages by focusing attention on property prices rather than supply shortages. The public becomes frustrated when property prices are not successfully curbed, except in the short run.

scholarly journals Impacts of International Commodity Trade on Conventional Biofuels Production

2020 ◽  
Vol 12 (7) ◽  
pp. 2626 ◽  
Author(s):  
Tamás Mizik
Keyword(s):  
Ethanol Production ◽  
Negative Impact ◽  
Positive Impact ◽  
Raw Materials ◽  
Explanatory Power ◽  
Biodiesel Production ◽  
Biofuel Production ◽  
Commodity Trade ◽  
International Commodity ◽  
Country Level

The study gives an overview of raw materials and biofuel generation, markets, production, and regulation. The major aim of this study was to reveal the impacts of biofuel production on international commodity trade. According to the results of the country-level regressions, the export of corn and sugar cane have generally negatively impacted ethanol production. This effect was positive at the global level which indicates that some of the imported raw materials are used for ethanol production. Although the explanatory power of the models was relatively high (from 0.35 (EU) to 0.94 (USA)), none of models proved to be significant, even at the 10% level. These values were higher for the biodiesel models (from 0.53 (USA) to 0.97 (Brazil)) and the EU model results were significant at the 5% level. The export of raw materials had a positive impact on biodiesel production. This implies that some part of the biodiesel was produced from the imported raw materials. The export of processed products (different oils) had a negative impact on biodiesel production, as they are normally used for other purposes.

scholarly journals Factors Determining the Prices of Thai silk: A Hedonic Price Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 204
Author(s):  
Pacharaporn Supavitarn ◽  
Apichaya Lilavanichakul
Keyword(s):  
Business Model ◽  
Positive Impact ◽  
Distribution Channel ◽  
Hedonic Price Model ◽  
Silk Fabric ◽  
Hedonic Price ◽  
Price Model ◽  
Factors Affecting ◽  
Differentiation Strategy ◽  
Hedonic Price Analysis

This paper aims to analyze factors determining the prices of Thai silk products by using the hedonic price model. A quantitative and qualitative approach were used to obtain the data of silk products. Findings from statistical estimated coefficients indicated that many factors were importance to Thai silk producers and related to consumers willing to pay for a premium price for some attributes. The results showed that the location of retail store, types of business model, and online distribution channel were factors affecting to price setting with a positive impact. The negative factors determining the prices were normal silk fabric (without the Royal peacock logo) and the variety of the product. The outcomes suggest that producers of Thai silk fabric should use the location of store, the business model, and the distribution channel as advantages of a product differentiation strategy to adding value to silk products. Keywords: Royal Peacock Brand; Thai Silk; Hedonic Price Model; Utility

scholarly journals Urban Spatial Expansion, Urban Compactness, and Average Travel Demand in the US Urbanized Areas

2020 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Qing Su
Keyword(s):  
Travel Demand ◽  
Negative Impact ◽  
Positive Impact ◽  
Transportation Cost ◽  
Simultaneous Equation ◽  
Lot Size ◽  
Average Household Income ◽  
The Us ◽  
Spatial Size ◽  
The Impact

This paper examines the impact of a wide variety of factors on spatial size, spatial compactness measured by population density, and average travel demand measured by daily vehicle miles traveled per capita. The simultaneous equation regression results indicate real average household income has a positive impact on spatial size and average travel demand while a negative impact on urban spatial compactness. Transportation cost measured by fuel cost per mile has a negative impact on spatial size while a positive impact on urban spatial compactness. Among the land use policy tools, urban growth boundary has a positive impact on urban compactness while minimum lot size has a positive impact on urban spatial size.

scholarly journals Analysing the local geography of the relationship between residential property prices and its determinants

2015 ◽  
Vol 28 (28) ◽  
pp. 21-35 ◽  
Author(s):  
Mohd Faris Dziauddin ◽  
Kamarul Ismail ◽  
Zainudin Othman
Keyword(s):  
Geographically Weighted Regression ◽  
Positive Impact ◽  
Weighted Regression ◽  
Residential Property ◽  
Relationship Selling ◽  
Property Prices ◽  
Property Price ◽  
Price Determinants ◽  
The Relationship ◽  
Attributes Data

AbstractThis paper analyses the local geography of the relationship between residential property prices and its determinants. A semiparametric geographically weighted regression (S-GWR) technique is employed to explore this relationship. Selling prices, structural and locational attributes data were collected from the database of the Department of Valuation and Services of Malaysia, selected maps and reports. The outcome of this paper shows a strong geographically varying relationship between residential property prices and its determinants in which the residential property price determinants have a positive impact on prices in some areas but negative or no impact on the others. The magnitude of the effect is also found to be geographically varied; the capitalisation in residential property prices is found greater in some areas but less or with no effect in some other parts of the areas. The use of S-GWR technique makes it possible to reveal such geographically varying relationships, thus leading to a better understanding of the relationship between residential property prices and its determinants.

scholarly journals THE DEVELOPMENT OF PENANG SHOP PRICE INDEX (PSPI) USING LASPEYRES HEDONIC PRICE MODEL

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Mohamad Hafiz Jamaludin ◽  
Suriatini Ismail ◽  
Norziha Ismail
Keyword(s):  
Continuous Monitoring ◽  
Price Index ◽  
Hedonic Model ◽  
Hedonic Price ◽  
Price Model ◽  
Property Market ◽  
Pilot Studies ◽  
Commercial Property ◽  
Independent Variables ◽  
Property Price

The index is considered an important benchmark and is a decision-making tool in the financial and capital markets, as well as in the property market. In Malaysia, continuous monitoring of property price movements is important as almost half of banking exposure is on property. Further, NAPIC has published indicators displaying the performance of property such as MHPI and PBO-RI. However, indicators regarding the price of commercial property are still less widely published in Malaysia. This study was conducted to develop indicators related to the price of commercial property, especially to shop property. This study has focused on the state of Penang as a study area. The literature review methodology is used to identify existing methods and practices used in developing the index of commercial property both in Malaysia and internationally. In determining the appropriate form of hedonic functions for the development of PSPI, analysis of dependent and independent variables was performed. Meanwhile, the development of the index is based on the Laspeyres hedonic model which is the same as the development of MHPI and PBO-RI. The development of PSPI will be able to help the industry and investors to make decisions and benchmark the performance of shop. This is also one of the pilot studies in Malaysia to form an indicator of commercial property.

scholarly journals Data Selection as the Basis for Better Value Modelling

2019 ◽  
Vol 27 (1) ◽  
pp. 25-34 ◽  
Author(s):  
Jacek Zyga
Keyword(s):  
Real Estate ◽  
Statistical Methods ◽  
Data Selection ◽  
Property Value ◽  
Price Model ◽  
Real Estate Appraisal ◽  
Property Prices ◽  
Property Price ◽  
Specific Object ◽  
Selection Of

Abstract The article is a voice in the debate on the scope of the application of statistical methods in real estate appraisal, written from the comparative perspective. It presents the results of an illustrative valuation of housing units with the use of databases of various sizes, constructed on the basis of publicly available data from the register of property prices and values. Against this background, the article presents an analysis of differences between the objectives and published results of valuations, which exemplify broadly understood property price modelling or property value modelling, as well as of activities focused around appraising a specific object. The conducted experiments demonstrated that, for the purposes of real estate appraisal itself, the selection of data is more useful than searching for a price model.

scholarly journals Towards a Hedonic Pricing Method for the Bucharest Private Housing Market

2019 ◽  
Vol 66 (3) ◽  
Author(s):  
Ion Radu Zilișteanu ◽  
Răzvan Muntean ◽  
Ștefan Cristian Gherghina ◽  
Georgeta Vintilă ◽  
Teodora Cristina Barbu
Keyword(s):  
Structure Type ◽  
Hedonic Pricing ◽  
Hedonic Price ◽  
Quantile Regressions ◽  
Price Model ◽  
Surface Type ◽  
The Real Estate ◽  
Property Prices ◽  
Hedonic Pricing Method ◽  
Private Housing

This paper aims at exploring the drivers of dwellings’sale prices in Bucharest, Romania, over the period 2014-2018. Several housing structural attributes are covered, such as the number of rooms, useful and constructed surface, type of comfort, floor, the number of bathrooms, balconies and parking, the seniority from construction, as well as from renovation, structure type, height regime, and the duration until completion of the real estate transaction. By estimating a standard hedonic price model via OLS regression for a sample of 765 transactions, we notice that all the selected variables, except the floor level and seniority from construction, positively influence the property prices. However, in case of useful and constructed surface, nonlinear relationships with property prices were acknowledged. Robustness checks in form of quantile regressions reinforce the empirical findings.

scholarly journals Municipal assessments versus actual sales prices in hedonic price studies

2015 ◽  
Vol 8 (1) ◽  
pp. 35-46
Author(s):  
Mario Du Preez ◽  
Michael Sale
Keyword(s):  
Seemingly Unrelated Regression ◽  
Hedonic Price ◽  
Property Value ◽  
Market Prices ◽  
Sales Price ◽  
Model Studies ◽  
Hedonic Price Models ◽  
Property Prices ◽  
Unrelated Regression ◽  
Property Price

In most hedonic price model studies, the actual sales price of a property is employed as the dependent variable in the parametric regression analysis. Although the use of this price is pervasive, alternatives to it do exist. One such alternative is the assessed property value, which is more readily available than the actual property price. The aim of this study is to compare implicit price estimates of property characteristics (both structural and locational) based on actual sales price data and assessed property values. To this end, a seemingly unrelated regression with two hedonic price equations is used, one which employs actual market prices as the dependent variable and the other which employs assessed values. The results show that the hypothesised influence of structural and locational housing characteristics on residential property prices is the same for assessed values, and actual market prices cannot be accepted. This finding should act as a caution for hedonic practitioners not to base their conclusions and recommendations solely on the use of assessed values in hedonic price models.

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