Purchase Motivation, Landscape Preference, and Housing Prices: Quantile Hedonic Analysis in Guangzhou, China

Abstract

Urban landscapes are important factors that affect housing prices, and significant differences between landscape preferences of various homebuyers may be observed because of the different reasons for purchasing a house (consumption or investment). However, the hedonic price model widely applied in most existing studies only captures the average effects of landscapes as a whole sample, and may ignore the heterogeneity of landscape preferences. To fill this gap, this study constructed hedonic price models and quantile regression models with the housing data in Guangzhou, China from 2013 to 2016 and analyzed the landscape preferences of buyers with different purchase motivations. Empirical results showed that the landscape preferences of buyers were different in housing submarkets. The implicit value of landscapes was greater in consumption demand than in investment demand, whereas investment buyers were more vulnerable to the disamenity effect of unattractive landscapes. In addition, the quantile effect of landscapes was identified, in which the buyers of highpriced housing will pay more for high-quality landscapes. This study revealed the diversified housing demands and landscape preferences of homebuyers, which is important for urban planning and project development.

Capitalization Effects of Rivers in Urban Housing Submarkets – A Case Study of the Yangtze River

“…Therefore, considering that buyers in different income groups have different willingness to pay for ecological landscapes, the impact of ecological landscape on high, medium and low-value properties may also be heterogeneous. Wen et al (2021) explored the internal relationship between landscape pref-erences and home values of different types of homebuyers based on Hedonic Pricing Method and Quantile Regression Model. The study showed that buyers who buy high-priced houses are more willing to pay for attractive landscapes than those who buy low-priced houses.…”