Hedonic Price Function for Residential Area Focusing on the Reasons for Residential Preferences in Japanese Metropolitan Areas

Abstract

This study aims to offer a new estimate of the hedonic price function of residential areas in Japanese metropolitan areas, focusing on the reasons for residential preferences. More specifically, it introduces two new explanatory variables-'regional vulnerability' and 'accessibility to destination stations'-and determines their usefulness. Based on the evaluation done in this study, the hedonic price function mentioned above showed 60% interpretability (as compared to 52% interpretability by hedonic price function using only conventional explanatory variables.) In addition, the significance level of both the explanatory variables was low, and the land price changed by 9% as the regional vulnerability changed by 1 grade. Furthermore, residents placed great emphasis on both variables. This made it evident that the introduction of the two explanatory variables that reflect the reasons for residential preferences specific to Japanese metropolitan areas was reasonable.

Modeling of residential property rents in Somalia using two-stage modeling

“…On the other hand, hedonic theory has been extensively used in the European housing context (Gouriéroux and Laferrère, 2009; Kolbe and Wüstemann, 2014; Wüstemann, 2015; Albert et al , 2016; Brander and Koetse, 2011; Czembrowski and Kronenberg, 2016; Schläpfer et al , 2015; Czembrowski et al , 2016; Panduro and Veie, 2013; Liebelt et al , 2018; Navratil et al , 2018; Waltert and Schläpfer, 2010; Baltagi et al , 2015; Özyurt, 2014). Similarly, many studies have applied the theory of hedonic price models in the context of Japan (see, for instance, Sadayuki, 2018; Kuroda, 2018; Bauer et al , 2017; Islam and Asami, 2011; Naoi et al , 2009; Shimizu et al , 2010a; Karato et al , 2015; Sasaki and Yamamoto, 2018; Tanaka and Zabel, 2018; Shimizu and Watanabe, 2016; Shimizu et al , 2010b; Diewert and Shimizu, 2015).…”

Valuation of Local Demand for Improved Air Quality: The Case of the Mae Moh Coal Mine Site in Thailand

“…For natural resources without existing markets (non-market goods), other valuation techniques need to be adopted such as the travel cost method [34], hedonic pricing [35,36], and benefit transfer method [44,45]. These methods are indirect market-based methods as they utilize markets of goods and services that are related to the resource in question.…”

“…These methods are indirect market-based methods as they utilize markets of goods and services that are related to the resource in question. For instance, the travel cost method utilizes the market prices of transport, accommodation, and wage labor to assess the values of a natural resource-oriented tourism destination [34], whilst the hedonic pricing method utilizes the prices of real estate to assess the values of natural resource amenities in the neighborhoods [36]. When non-market goods and services do not have indirectly related markets, the CVM is commonly applied.…”

Machine Learning Housing Price Prediction in Petaling Jaya, Selangor, Malaysia

“…In [7] insisted that during their study duration, this modelling technique has been practiced on a few classes of real estate properties, like urban bare lands, rural bare lands, multiple-family residences, and single-family residences. A detailed theoretical review of the implementation evolution of the HPM modelling technique in the real estate aspect was presented by [8], [9] in concert with other research [10] that analyzed articles on the implementation of HPM to measure the variables that determine property values. One of the advantages of the HPM modelling technique includes its ability to estimate the prediction values based on the variable choices besides being particularly applicable to property market research.…”

“…It is interesting to note that a lot of previous research using the HPM modelling technique compares other modelling techniques that focus on property market pricing in North America, the West, and Europe in particular. Of these, just a few were conducted in the East, such as in Japan [9], Hong Kong [10], and Taiwan [11]. The fuzzy logic system (FLS) is a modelling technique utilizing a multiple criteria decision-making method or tool.…”