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Hedonic modelling

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Hedonic modellingEdit

Related phrases: hedonic pricing approach, hedonic tone, hedonic model, hedonic modeling, hedonic scale, hedonic calculus, hedonic demand theory, hedonic regression, hedonic pricing, "Measure the pleasure"

For more contenders for the million dollar view, see [[1]]

File:Landscape icon.jpg

Definition of HedonicEdit

   * Relating to like or dislike.

BackgroundEdit

This was a page for collaborative original research on the use of hedonic models for estimating the value of a view from a building. This was planning for work in progress in 2007, published in 2008 and 2009. Two papers on the value of a (sea and veld) view were presented. The primary author was based at the School of Construction Economics and Management at the University of the Witwatersrand, Johannesburg, South Africa.

ViewpointEdit

The authors believe that hedonic modelling is a useful tool in assessing the value of buildings where view is an asset. This includes hotels, apartment blocks (flats), residential homes. Data on property transactions and selling points must be readily available, making this the least expensive and least complicated approach.

Preproposal planningEdit

Beginning of a research proposal for co-authored work.

Research QuestionEdit

What is the value of a view? Alternatively: What is a view worth? +/-ve

Dependent variableEdit

Property price (ideally deeds office); rental / purchase price

Independent variables that might be availableEdit

Adjacent property prices, plot size zoned, number of bedrooms, floor area of rooms, number of bathrooms, degrees of seaview, lakes, wetlands, forest, scrub, open fields/space, parks, city scapes; water pollution, air pollution, farmland flies, car and aeroplane noise levels, mine dumps, slime dams, power lines, cellphone towers etc.

Confounding variablesEdit

Inflation of property prices, noise, access to transport and amenities, snob value, etc.

Key wordsEdit

Hedonic regression modelling, property purchase prices

Importance of studyEdit

Aid to property valuation; Model can be used to reduce visual impact of new developments; Model can be used recursively by developers to optimize returns on multi-unit developments or estimate for planning and decision-making the potential impacts of construction projects.

MethodEdit

  1. Capture valuations.
  2. Multiple Linear Regression Analysis

Reading ListEdit

Texas]

Method] Ecosystem Valuation Section 3

What’s in a View?] Steven C. Bourassa, Martin Hoesli, and Jian Sun
The Effect of Environmental Amenities on House Values] by Quentin 

Gillard in The Professional Geographer (1981) vol. 33 p. 216