The Market Valuation of Interior Design and Developer Strategies : A Simple Theory and Some Evidence
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 63-107 |
| Journal / Publication | International Real Estate Review |
| Volume | 17 |
| Issue number | 1 |
| Publication status | Published - 1 Mar 2014 |
Link(s)
Abstract
How much do the market values of housing reflect its interior design? Does the interior design interact with other housing attributes? By following recent research based on the “graph theory,” this paper confirms the importance of internal design variables in a hedonic pricing model, which is applied to a large dataset of high-rise apartment buildings in Asia. The evidence is consistent with a simple theory in that developers strategically use interior design to “dilute” the effect of location, which leads to a form of endogenous multicollinearity. Directions for future research are also discussed.
Research Area(s)
- Dummy Variables, Endogenous Multicollinearity, Interaction Terms, Interior Design, Market Valuation
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Citation Format(s)
The Market Valuation of Interior Design and Developer Strategies: A Simple Theory and Some Evidence. / Leung, Charles Ka Yui; Ma, Wai Yip; Zhang, Jun.
In: International Real Estate Review, Vol. 17, No. 1, 01.03.2014, p. 63-107.
In: International Real Estate Review, Vol. 17, No. 1, 01.03.2014, p. 63-107.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
