An investigation to the determinants of residential property price - The case of Hong Kong

Residential property price is affected by various factors and it is quite difficult to determine which factors contribute more than the others. This research seeks to investigate the significant levels of these price determinants in Hong Kong, so as to obtain a priority list. The study begins with an extensive review of macro and micro factors affecting residential property price. Then entropy method is deployed to find out the priority of those attributes. Data are obtained from various sources in Hong Kong for further analysis. The empirical results show that the micro factors of garden and duplex, together with the macro factors of the number of unemployment and consumer price index command the greatest impact on price of residential property in Hong Kong. Meanwhile, the significant level of each determinant obtained Is verified in the case study, the result shows that it is consistent with the actual market trend in Hong Kong.
The results of this study give developers and planners of residential properties some insights about the effect of various factors affecting the price of residential property, so as to assist the decision making for price valuation in the real estate market Further studies are required to explore more samples of particular district.