Modeling Hong Kong real estate prices

This paper attempts to estimate real estate prices from a Hong Kong perspective. A hedonic price model is estimated utilizing housing transaction data during a period of relatively stable property price movements. Empirical results suggest that while a residential property of larger size, higher floor level, and better view commands a higher transaction price, a property lying closer to the mass transit railway station also commands a price premium. The nonlinear effect of floor level has also been confirmed to exert an impact upon prices. Furthermore, an apartment located on an "unlucky number" floor is not preferred by homebuyers and is usually transacted at a price discount. © Springer Science+Business Media B.V. 2007.Link_to_subscribed_fulltex