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Determinantes del Precio de Viviendas en Chile

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  • Andrés Sagner

Abstract

This paper econometrically examines the factors determining the real estate price dynamics in Chile in the period 1990-2007. For such purpose, we use annual data of 419 homes located in the Metropolitan Area and acquired in that period. The results indicate that variables such as age and size are statistically significant determinants in the formation of property prices; access to the subway stations tends to capitalize in a non-linear manner; and both household income and aggregate income are statistically and economically significant. The price decomposition reveals that between 69% and 71% of the housing price level is explained by determinants related to attributes of the property, while about 70% of the observed growth in housing prices between 1990 and 2007 is the result of macro-financial determinants. During 2006 and 2007, the trend in prices is not significantly different from that predicted by the model. These results tend to be similar using alternative estimates by housing type and different sample sub-periods.

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 549.

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Date of creation: Dec 2009
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Handle: RePEc:chb:bcchwp:549

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  1. Bover, Olympia & Velilla Lucini, Pilar, 2002. "Hedonic House Prices Without Characteristics: The Case of New Multiunit Housing," CEPR Discussion Papers 3161, C.E.P.R. Discussion Papers.
  2. Alan G. Ahearne & John Ammer & Brian M. Doyle & Linda S. Kole & Robert F. Martin, 2005. "Monetary policy and house prices: a cross-country study," International Finance Discussion Papers 841, Board of Governors of the Federal Reserve System (U.S.).
  3. Rubinfeld, Daniel L., 1987. "The economics of the local public sector," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 11, pages 571-645 Elsevier.
  4. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June.
  5. Bartik, Timothy J, 1987. "The Estimation of Demand Parameters in Hedonic Price Models," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 81-88, February.
  6. Guy Debelle, 2004. "Macroeconomic implications of rising household debt," BIS Working Papers 153, Bank for International Settlements.
  7. John Bound & David A. Jaeger & Regina Baker, 1993. "The Cure Can Be Worse than the Disease: A Cautionary Tale Regarding Instrumental Variables," NBER Technical Working Papers 0137, National Bureau of Economic Research, Inc.
  8. Yinger, John, 1982. "Capitalization and the Theory of Local Public Finance," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 917-43, October.
  9. Claudio Borio & Patrick McGuire, 2004. "Twin peaks in equity and housing prices?," BIS Quarterly Review, Bank for International Settlements, March.
  10. Quiroga, Bernardo F., 2005. "Precios hedónicos para valoración de atributos de viviendas sociales en la Región Metropolitana de Santiago," MPRA Paper 378, University Library of Munich, Germany.
  11. Christopher A. Manning, 1988. "The Determinants of Intercity Home Building Site Price Differences," Land Economics, University of Wisconsin Press, vol. 64(1), pages 1-14.
  12. Paul Louis Ceriel Hilbers & Lisbeth Zacho & Qin Lei, 2001. "Real Estate Market Developments and Financal Sector Soundness," IMF Working Papers 01/129, International Monetary Fund.
  13. Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
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Cited by:
  1. Gastón Chaumont & Miguel Fuentes & Felipe Labbé & Alberto Naudon, 2011. "A Reassessment of Flexible Price Evidence Using Scanner Data: Evidence from an Emerging Economy," Working Papers Central Bank of Chile 641, Central Bank of Chile.
  2. Hernán Enríquez Sierra & Carlos Barreto Nieto & Carolina Correa Caro & Jacobo Campo Robledo, 2013. "Precio del suelo y regalías en Colombia: un análisis espacial para los municipios productores de petróleo," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  3. Idrovo Aguirre, Byron & Lennon S., Joaquín, 2011. "Indice de Precios de Viviendas Nuevas para el Gran Santiago
    [Hedonic pricing models to calculate price indexes for new houses in the Santiago province]
    ," MPRA Paper 31400, University Library of Munich, Germany, revised 28 Jan 2011.

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