The construction of house price index: modelling by incorporating absolute location
Price of residential property plays a very important role in the economy of developed countries. Price is an element for individual or household to decide on selling and buying properties, and to invest in the direct property market. In response to such a demand, most developed countries have p...
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| Format: | Thesis |
| Language: | English English English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/1619/1/24p%20NORSHAZWANI%20AFIQAH%20ROSMERA.pdf http://eprints.uthm.edu.my/1619/2/NORSHAZWANI%20AFIQAH%20ROSMERA%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/1619/3/NORSHAZWANI%20AFIQAH%20ROSMERA%20WATERMARK.pdf |
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| Summary: | Price of residential property plays a very important role in the economy of developed
countries. Price is an element for individual or household to decide on selling and
buying properties, and to invest in the direct property market. In response to such a
demand, most developed countries have produced a house price index to monitor
price changes. In other countries, studies related to the construction of house price
index are widely conducted. However, in Malaysian context, there is less attention
regarding the construction of house price index. To fill in the gap, this research aims
to construct a house price index by considering absolute location in modelling the
house price index. Three models of house price index (HPI) are constructed. Method
used in the construction of HPI is the hedonic method. The constructed HPI models
are composed of different spatial elements as explanatory variables. Spatial elements
included in this research are subdistricts dummy, distance of house to city centre, and
coordinate of houses. The results show that the inclusion of property coordinate helps
improve the model fitting and explains variation in house price. However, in terms of
price index, the inclusion of coordinate of houses may not be important as it produces
a similar movement pattern with price index that is composed of common locational
variable. This research reveals that the common hedonic model that is composed of
subdistricts dummy and distance to city centre as locational variable is sufficient to
construct an HPI. |
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