Hedonic Pricing Model for Real Property Valuation via GIS - A Review

Open access

Abstract

Hedonic pricing models in real property valuation have been frequently applied in many research studies and projects since it was introduced by Rosen in 1974. The development of Geographic Information Systems (GIS) in the recent decades has gradually supports the usage of hedonic model in the spatial data pricing model studies. Beside the basic advantages of GIS to position properties in terms of their geographic coordinates, it has the capabilities of dealing with reasonable amount of data, and wide choices of analysis that make it powerful tool to facilitate the building and implementation of the hedonic models within its framework. Many studies have employed GIS in real property valuation in their present work and for the future prediction. This paper reviews the works of literature on the GIS applications in the real property valuation employing the hedonic pricing models.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • 1. Bujanda A and Fullerton TM 2017. Impacts of transportation infrastructure on single-family property values. Applied Economics. 49(1) 1-17.

  • 2. Cebula R 2009. The hedonic pricing model applied to the housing market of the city of savannah and its Savannah historic landmark district. The Review of Regional Studies. 39(1) 9-22.

  • 3. Cellmer R 2011. Spatial Analysis of The Effect of Noise on The Prices and Value of Residential Real property. Geomatics And Environmental Engineering. 5(4) 13-28.

  • 4. Dziauddin M 2009. Measuring The Effects of The Light Rail Transit (LRT) System on House Prices in the Klang Valley Malaysia. Ph.D. Thesis Newcastle University 517.

  • 5. Eboy O and Samat N 2015. Modeling property rating valuation using Geographical Weighted Regression (GWR) and Spatial Regression Model (SRM): The case of Kota Kinabalu Sabah. Malaysian Journal of Society and Space.. 11(11) 98-109.

  • 6. Esri 2005: How Hot Spot Analysis: Getis-Ord Gi* (Spatial Statistics) works [http://resources.esri.com/help/9.3/arcgisengine/java/gp_toolref/spatial_statistics_tools/how_hot_spot_analysis_colon_getis_ord_gi_star_spatial_statistics_works.htm]

  • 7. Giaccaria S and Frontuto V 2007. GIS and Geographically Weighted Regression in stated preferences analysis of the externalities produced by linear infrastructures. Working paper series. Working paper No. 10/2007. University of Torino. 32.

  • 8. Helbich M Brunauer W Vaz E and Nijkamp P 2013. Spatial heterogeneity in hedonic house price models: the case of Austria. Tinbergen Institute Discussion Paper TI 2013-171/VIII. 24.

  • 9. Jahanshiri E Buyong T and Shariff R 2011. A Review of Property Mass Valuation Models. Pertanika Journal of Science & Technology. 19 (S) 23 - 30

  • 10. Kong F Yin H Nakagoshi N 2007. Using GIS and landscape metrics in the hedonic price modeling of the amenity value of urban green space: A case study in Jinan City China. Landscape and Urban Planning. 79 240-252.

  • 11. Lancaster KJ 1966. A new approach to consumer theory Journal of Political Economy. 74 132-157.

  • 12. Lehner M 2011. Modelling housing prices in Singapore applying spatial hedonic regression. M.S. Thesis Dept. of Civil Environmental and Geomatic Engineering. Swiss Federal Institute of Technology Zurich (ETH Zurich) 108.

  • 13. Lozano-Gracia N and Anselin L 2011. Is the price right? Assessing estimates of cadastral values for Bogotá Colombia. Regional Science Policy & Practice 4 (4) 495-508.

  • 14. Lu B Charlton M Harris P and Fotheringham S 2014. Geographically weighted regression with a non-Euclidean distance metric: a case study using hedonic house price data. International Journal of Geographical Information Science. 28(4) 660-681.

  • 15. Malpezzi S 2002. Hedonic Pricing Models: A Selective and Applied Review Housing Economics and Public Policy. Blackwell Science Oxford 67-89.

  • 16. Noor N Asmawi MZ and Abdullah A 2015. Sustainable urban regeneration: GIS and hedonic pricing method in determining the value of green space in housing area. Procedia - Social and Behavioral Sciences. 170 669-679.

  • 17. Ottensmann J Payton S and Man 2008. J Urban location and housing prices within a hedonic model. The Journal of Regional Analysis and Policy 38(1) 19-35.

  • 18. Oud DAJ 2017. GIS based property valuation. M.S. Thesis Dept. of Geographical sciences-geo-information applications and management Delft University of Technology (TUD) University of Twente (UT) - ITC Utrecht University (UU) and Wageningen University & Research (WUR) 70.

  • 19. Randeniya TD Ranasinghe G and Amarawickrama S 2017. A model to estimate the implicit values of housing attributes by applying the hedonic pricing method. International Journal of Built Environment and Sustainability. 4(2) 113-120.

  • 20. Rosen S 1974. Hedonic prices and implicit markets: Product differentiation in pure competition. Journal of Political Economy. 82(1) 35-55.

  • 21. Studenmund AH 2006. Using econometrics: A practical guide. 5th.Ed. Pearson International Edition 639.

  • 22. Tech Differences. Difference between Linear and Logistic Regression. 2018 [https://techdifferences.com/difference-between-linear-and-logistic-regression.html]

  • 23. Yang Y Liu J Xu S and Zhao Y 2016. An Extended Semi-Supervised Regression Approach with Co-Training and Geographical Weighted Regression: A Case Study of Housing Prices in Beijing. International Journal of Geo-Information.5(1) 4-15.

  • 24. Zhang R Du Q Geng J Liu B and Huang Y 2015. An improved spatial error model for the mass appraisal of commercial real property based on spatial analysis: Shenzhen as a case study. Habitat International. 46 196-205.

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 55 55 32
PDF Downloads 63 63 34