A Conjoint Analysis of Buyers¡¦ Preferences for Residential Property
This study evaluates the preferences of middle-high income earners for newly designed high-cost residential property attributes in their purchase decision, by using the conjoint method, whereby the buyers¡¦ ¡¥trade-offs¡¦ of different product attributes are measured. The fractional factorial design is used to create eighteen sets of product profiles based on a combination of the six most important attributes that determine the purchase decision of buyers. The preference rating of the respondents is then decomposed to yield part-worth utility for each attribute level. A regression analysis shows that the most pertinent attributes of high-cost residential properties trade-off by the respondents, are type of property, design and features, price, built-up area, location, and reputation of the developer. Together, these attribute explain about 74% of the buyers¡¦ expressed utility of the product purchased. By using a hold-out sample of respondents, a conjoint analysis has predicted the buyers¡¦ expressed utility with a reasonable level of accuracy.
Volume (Year): 15 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA|
Web page: http://www.asres.org/
|Order Information:|| Postal: Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA|
Web: http://www.asres.org/ Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sayadi, Samir & Gonzalez Roa, M. Carmen & Calatrava Requena, Javier, 2005. "Ranking versus scale rating in conjoint analysis: Evaluating landscapes in mountainous regions in southeastern Spain," Ecological Economics, Elsevier, vol. 55(4), pages 539-550, December.
- Quigley, John M., 1985. "Consumer choice of dwelling, neighborhood and public services," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 41-63, February.
- Olympia Bover & Mario Izquierdo, 2003. "Quality-adjusted prices: hedonic methods and implications for national accounts," Investigaciones Economicas, Fundación SEPI, vol. 27(2), pages 199-238, May.
- Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
- Natter, Martin & Feurstein, Markus, 2002. "Real world performance of choice-based conjoint models," European Journal of Operational Research, Elsevier, vol. 137(2), pages 448-458, March.
- H Timmermans & L van Noortwijk, 1995. "Context dependencies in housing choice behavior," Environment and Planning A, Pion Ltd, London, vol. 27(2), pages 181-192, February.
- A E Joseph & B Smit & G P McIlravey, 1989. "Consumer Preferences for Rural Residences: A Conjoint Analysis in Ontario, Canada," Environment and Planning A, SAGE Publishing, vol. 21(1), pages 47-63, January.
- Kenneth Y. Chay & Michael Greenstone, 2005.
"Does Air Quality Matter? Evidence from the Housing Market,"
Journal of Political Economy,
University of Chicago Press, vol. 113(2), pages 376-424, April.
- Kenneth Y. Chay & Michael Greenstone, 1998. "Does Air Quality Matter? Evidence from the Housing Market," NBER Working Papers 6826, National Bureau of Economic Research, Inc.
- Marina Bravi & Sergio Giaccaria, 2005. "Forecasting Consumer Choices: The Conjoint Analysis (CA) in Real Estate Market Research," ERES eres2005_125, European Real Estate Society (ERES).
- Green, Paul E & Srinivasan, V, 1978. " Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Oxford University Press, vol. 5(2), pages 103-23, Se.
- AfDB AfDB, . "African Development Report 2004," African Development Report, African Development Bank, number 21 edited by Adeleke Oluwole Salami, 12.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- E Molin & H Oppewal & H Timmermans, 1999.
"Group-based versus individual-based conjoint preference models of residential preferences: a comparative test,"
Environment and Planning A,
Pion Ltd, London, vol. 31(11), pages 1935-1947, November.
- E Molin & H Oppewal & H Timmermans, 1999. "Group-Based versus Individual-Based Conjoint Preference Models of Residential Preferences: A Comparative Test," Environment and Planning A, SAGE Publishing, vol. 31(11), pages 1935-1947, November.
- Bender, A. & Din, A. & Hoesli, M. & Brocher, S., 1999. "Environmental Preferences of Homeowners: Further Evidence using the AHP Method," Papers 99.10, Ecole des Hautes Etudes Commerciales, Universite de Geneve-.
When requesting a correction, please mention this item's handle: RePEc:ire:issued:v:15:n:01:2012:p:73-105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRER Secretary Office/Webmaster)
If references are entirely missing, you can add them using this form.