A study of factors influencing the price of apartments: Evidence from Vietnam

Bui, Toan Ngoc

doi:10.5267/j.msl.2020.3.007

Cited by 7 publications

(7 citation statements)

References 23 publications

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“…This means that the estimation using the Ordinary Least Squares regression (OLS) does not provide a reliable result. Thus, robustness statistics is utilized for the estimation, following what have been suggested by White (1980) and recently performed by Bui (2020a). As can be seen from Table 4, the estimation results are significant at the 1% level (Prob>F = 0.000).…”

Section: Resultsmentioning

confidence: 85%

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The Hedonic Pricing Model Applied to the Housing Market

Nguyen¹

2020

IJEBA

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Purpose:The article applies the hedonic pricing model to estimate house price in the housing market of Vietnam, which is a country with a fledgeling housing market, so the study is expected to bring interesting findings. Design/Methodology/Approach: By applying the hedonic pricing model, most of the previous studies have reported that house price is significantly influenced by the characteristics of the house itself, its location and surrounding facilities. Based on this, the article adopts the Ordinary Least Squares (OLS) regression in combination with robustness statistics in the model estimation, so the estimated results on house price are reliable and able to be widely applied. Data are collected through the survey into housing projects in Ho Chi Minh and Ha Noi city, which are the two largest cities in Vietnam. Findings: The findings reveal that the hedonic pricing model can be applied to estimate house price in Vietnam's housing market. This can be said to be a big success in giving first empirical evidence in Vietnam on this matter. Specifically, house price is negatively affected by its proximity to the city center. Also, factors including house size, house type, house structure, number of bedrooms, amenities around the house exert a positive influence on the price. Practical Implications: The estimated results are typical and reliable, which can be applied universally. Originality/Value: The study confirms the hedonic pricing model can be well-applied to accurately estimate the price of houses in Vietnam. More than that, the findings are also essential for other countries, especially those with a nascent housing market like Vietnam.

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Section: Resultsmentioning

confidence: 85%

“…In Vietnam, housing demand is highly increasing, especially in metropolitan areas Bui, 2020a;Nguyen and Do, 2020). This is because a great number of inter-provincial migrants tend to move to big cities (Bui, 2020b) while the availability of land is limited.…”

Section: Introductionmentioning

confidence: 99%

The Hedonic Pricing Model Applied to the Housing Market

Nguyen¹

2020

IJEBA

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“…Therefore, the model that best satisfies the Pareto frontier is obtained, and the user can identify the most appropriate solution whose (i) CoD ensures a medium/high statistical robustness level, (ii) algebraic form is not too complicated to interpret, (iii) mathematical expression includes the largest number of variables considered capable to investigate the phenomenon addressed. This has often been used for analysis similar to that of the present research, regarding influencing factors in the market dynamics and the selling prices, or to identify the contribution of specific variables in the housing values formation processes [78][79][80][86][87][88], but never before to evaluate the effects of an extra-local exogenous event on the real estate market. In order to define a model (price function) that could efficiently describe the selling price formation mechanism for each study sample related to the six Italian cities considered for Phase I, the EPR-MOGA technique was implemented with no function f, through a static regression, a maximum number of equation terms equal to eight and a set of candidate exponents belonging to the range (0, 0.5, 1, 2).…”

Section: Econometric Techniquementioning

confidence: 99%

An Assessment Methodology for the Evaluation of the Impacts of the COVID-19 Pandemic on the Italian Housing Market Demand

et al. 2021

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Due to the forced changes that the COVID-19 pandemic has had in many aspects of ordinary life (working, social life, training and learning in schools etc.), the characteristics of domestic spaces have significantly modified buying, selling and renting decisions in the real estate market. The aim of this research was to structure a methodology, articulated into four steps, to assess the variation that has occurred in residential market demand as a result of COVID-19 anti-contagion measures, with regard to six metropolitan Italian cities. We considered two samples of properties for each city, the first referencing the pre-COVID-19 pandemic spread and the second collected in the current situation. Consequently, we were able to determine variations in residential market appreciations through the application of a regressive econometric technique. The obtained results highlighted the relevance assumed by indoor acoustic and thermal comfort property factors, compared with the pre-COVID-19 condition. The proposed methodology could be useful to support the public and private entities involved in urban investment decision-making processes, allowing us to identify the most appreciated factors of the residential real estate market demand, in order to improve the conditions of existing and future assets and reduce the related risk levels.

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“…As far as the different dimensions and rooms of an apartment are concerned, Bui (2020) concluded that the prices of apartments are positively affected by the presence of a balcony, a pool, proximity to a shopping centre, and the possibility of renting. Bui (2020) states that these conclusions are valuable for apartment designers since they might offer better solutions to increase the value of the apartments and meet the customers' demands. In addition, Mohammadi (2010) states that the different rooms of the house impact its natural ventilation.…”

Section: Room Dimensions and Amenitiesmentioning

confidence: 99%

Validation of an Information Asymmetry Scale in the Portuguese Real Estate Market

Tavares

Santos

2021

RBGN

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Purpose -The motivation to study the information asymmetry in the real estate market comes from the fact that this market is far from being efficient and perfect, and buying a house is, for most families, the biggest deal of their lives. This paper aims to validate a scale that evaluates the information asymmetry in the Portuguese real estate market.Theoretical framework -During the sales negotiation process, estate agents exhibit the positive aspects of the house, as well as its amenities and qualities, and camouflage the least positive aspects of the deal. Finding both the positive and the negative aspects is crucial.Design/methodology/approach -To collect the sample, an instrument based on a questionnaire survey was used, which analyses the information asymmetry in the real estate market and the sociodemographic profile of estate agents in Portugal. The sample is composed of 350 commercial delegates from the three biggest real estate mediation companies in the Portuguese market.Findings -The results show that the scale for the information asymmetry in the Portuguese real estate market is composed of six factors, which present adequate levels of validity and reliability: negative externalities, possibilities of making a deal, housing quality, service areas, proximity to businesses, and positive externalities.Practical & social implications of research -This study is expected to contribute to improving the scientific knowledge on the real estate market, and to enhancing the information transmitted by estate agents to their future clients.Originality/value -In Portugal, there is no study with such depth about this topic of research. The validation of the information asymmetry scale in the Portuguese real estate market represents a breakthrough in the knowledge in this area.

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A study of factors influencing the price of apartments: Evidence from Vietnam

Cited by 7 publications

References 23 publications

The Hedonic Pricing Model Applied to the Housing Market

The Hedonic Pricing Model Applied to the Housing Market

An Assessment Methodology for the Evaluation of the Impacts of the COVID-19 Pandemic on the Italian Housing Market Demand

Validation of an Information Asymmetry Scale in the Portuguese Real Estate Market

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