TY - JOUR
T1 - Testing Housing Price Drivers in Santiago de Chile
T2 - A Hedonic Price Approach
AU - Vergara-Perucich, José Francisco
N1 - Publisher Copyright:
© 2023, Academy of Sciences of the Czech Republic, Institute of Sociology. All rights reserved.
PY - 2023
Y1 - 2023
N2 - Hedonic modelling is an empirical analysis technique that is widely used to review the housing market and unpack the main determinants of price. A correct determination of housing price drivers allows a weighted prediction of the value of each dwelling for sale or rent. This paper reviews the fundamental determinants of housing prices that have been published in the literature to see which ones have a better predictive fit for the case of the housing market in the city of Santiago, Chile. From a record of 456,000 property transactions, a dataset composed of 11 explanatory variables is elaborated. Through a semi-logarithmic regression, 4 variables that contribute to explaining the formation of housing prices in Santiago, Chile, are identified. The results indicate that the socioeconomic characterisation of urban areas where housing is traded, the price of copper on the London Metal Exchange, the mortgage interest rate, the age of residential buildings are the main drivers for the main drivers of prices in Santiago. Given the crisis of access to housing in Chile, the article provides relevant information for decision-makers in housing policy.
AB - Hedonic modelling is an empirical analysis technique that is widely used to review the housing market and unpack the main determinants of price. A correct determination of housing price drivers allows a weighted prediction of the value of each dwelling for sale or rent. This paper reviews the fundamental determinants of housing prices that have been published in the literature to see which ones have a better predictive fit for the case of the housing market in the city of Santiago, Chile. From a record of 456,000 property transactions, a dataset composed of 11 explanatory variables is elaborated. Through a semi-logarithmic regression, 4 variables that contribute to explaining the formation of housing prices in Santiago, Chile, are identified. The results indicate that the socioeconomic characterisation of urban areas where housing is traded, the price of copper on the London Metal Exchange, the mortgage interest rate, the age of residential buildings are the main drivers for the main drivers of prices in Santiago. Given the crisis of access to housing in Chile, the article provides relevant information for decision-makers in housing policy.
KW - hedonic economics
KW - housing in developing countries
KW - land markets and housing policy
KW - urban policy and planning
UR - http://www.scopus.com/inward/record.url?scp=85175177553&partnerID=8YFLogxK
U2 - 10.13060/23362839.2023.10.2.558
DO - 10.13060/23362839.2023.10.2.558
M3 - Article
AN - SCOPUS:85175177553
SN - 2336-2839
VL - 10
SP - 44
EP - 57
JO - Critical Housing Analysis
JF - Critical Housing Analysis
IS - 2
ER -
