Proximity to Neighborhood Services and Property Values in Urban Area: An Evaluation through the Hedonic Pricing Model

Abstract

Neighborhood services, property attributes, and their associated amenities have positive impacts on land and property values. This impact is estimated by the hedonic pricing model, which is considered an effective method used in previous studies for such evaluations. The study uses Geographical Information Science by digitizing the point of interest in the study area for spatial modeling of data collection points and multi-linear regression as a statistical analysis of hedonic measurements. The hedonic measurements include the data of structural, locational, environmental, and community attributes of a property at a given time and space at a walkable distance from the neighborhood for measuring proximity. The results of the study are represented through the summary of the regression model, which expresses the impact of every individual variable on the entire value of the property, and the appropriateness of the results is shown by values R, R2, and adjusted R2. The result of the study concluded that property characteristics are varied from location to location, and that is why it is difficult to measure the exact market values, particularly in areas that lack urban planning and heterogeneous data. Research on such burning issues is essential for sustainable urban development.

Assessing the Level of Urban Sustainability in the Capital of Pakistan: A Social Analysis Applied through Multiple Linear Regression

“…Ground truthing is a suitable way to understand the social issues of any area. Different researchers use multiple dependent and independent indicators in social sciences to examine urban sustainability in urban areas around the world [44,45]. Therefore, these indicators vary from area to area and from region to region based on their geographical requirements and needs.…”

The Impact of Recognized Features of Uncomfortable Houses on Auction Prices: A Chinese Cultural Perspective

“…The hedonic price model, also known as the characteristic price model and utility valuation method, posits that real estate is made up of many different characteristics, and that the price of real estate is determined by the utility brought by all of these features (Bao & Wan, 2004). These features include area, floor, building materials used in housing, construction cost and infrastructure cost, location, community name, and environmental externalities of housing (Aziz et al, 2023; R. Y. M. Li & Chau, 2016; J.…”

“…estate is determined by the utility brought by all of these features (Bao & Wan, 2004). These features include area, floor, building materials used in housing, construction cost and infrastructure cost, location, community name, and environmental externalities of housing (Aziz et al, 2023; R. Y. M. Li & Chau, 2016;J. Li & Huang, 2020;N.…”

Using Co-Ordinate Systems in Hedonic Housing Regressions

“…Aziz et al [23] investigate the impact of distance to neighborhood services, such as a hospital or market, and property attributes on land and property values in the congested urban area of Gujrat, Pakistan. In doing so, they find that although the distance from neighborhood services and land/property values are negatively related, as expected, these relationships are marginally insignificant.…”

“…In doing so, they find that although the distance from neighborhood services and land/property values are negatively related, as expected, these relationships are marginally insignificant. The empirical approach used by Aziz et al [23] includes the mapping of data collection points in Gujrat and their distance from neighborhood services in terms of spatial analysis. A contemporaneous study by Peng et al [24] examines the impact of various types of "urban blue spaces" on house prices across eight megacities in China.…”