Hedonic modelling

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Contents 1 Hedonic modelling 1.1 Definition of Hedonic 1.2 Background 1.3 Viewpoint 1.4 Preproposal planning 1.5 Research Question 1.6 Dependent variable 1.7 Independent variables 1.8 Confounding variables 1.9 Key words 1.10 Importance of study 1.11 Method

[edit] Hedonic modelling

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]]

[edit] Definition of Hedonic

   * Relating to like or dislike.

[edit] Background

This is a page for collaborative original research on the use of hedonic models for estimating the value of a view from a building. This is work in progress, with hopes of publishing in 2007. The author line currently contains two researchers based at the School of Construction Economics and Management at the University of the Witwatersrand, Johannesburg, South Africa. The author line is not closed, and any intellectual contributions are welcome.

[edit] Viewpoint

The authors believe that hedonic modelling will be 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.

[edit] Preproposal planning

Beginning of a research proposal for co-authored work by Ian Kennedy and possibly François Viruly: kennedyig at consecon dot wits dot ac dot za and virulyf at consecon dot wits dot ac dot za

[edit] Research Question

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

[edit] Dependent variable

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

[edit] Independent variables

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.

[edit] Confounding variables

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

[edit] Key words

Hedonic regression modelling, property purchase prices

[edit] Importance of study

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.

[edit] Method

1. Create reference digital photos.
2. Digitally manipulate images as required.
3. Data projection to an expert audience ('taste panel') composed e.g. of property brokers and estate agents.
4. Capture valuations.
5. Multiple Linear Regression Analysis with SPSS, SAS or Excel
6. Publish reference gallery and model parameters. Ideal for a wiki and conference as it is highly visual.