Methodological enchancement of hedonic price index in Malaysia

Housing market is one of the largest asset sectors in Malaysia. Several parties are concerned about the performance of housing market including government, financial institution, market player and public. A proper computation of house price index using hedonic model is critical in monitoring housing...

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Main Author:	Cheng, Chin Tiong
Format:	Thesis
Language:	English
Published:	2017
Subjects:	G70.212-70.215 Geographic information system
Online Access:	http://eprints.utm.my/id/eprint/79104/1/ChengChinTiongPFGHT2017.pdf
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id	my-utm-ep.79104
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spelling	my-utm-ep.791042018-09-27T06:07:45Z Methodological enchancement of hedonic price index in Malaysia 2017 Cheng, Chin Tiong G70.212-70.215 Geographic information system Housing market is one of the largest asset sectors in Malaysia. Several parties are concerned about the performance of housing market including government, financial institution, market player and public. A proper computation of house price index using hedonic model is critical in monitoring housing performance to avoid biased estimation which due to complexity and misspecification of the model. This study has enhanced the conventional hedonic price index model through a combination of regression modelling and spatial model in order to yield more reliable house price index. The studied sample comprises 6,420 transactions of double storey terrace houses in Johor Bahru from year 2006 until year 2011. This study examined three types of regression modelling namely shrinkage, semiparametric and ordinary least squares method in constructing spatial hedonic price index model and conventional hedonic price index model respectively. An optimal hedonic price index model was ascertained according to the predictive power, accuracy and consistency test in the study. The result found that shrinkage estimator is robust when it comes to perform spatial hedonic price index model as compared to ordinary least squares and semiparametric method. Moreover, the house price index is further enhanced using temporal aggregation and seasonality analysis. The results show that seasonal adjusted monthly index is more effective in monitoring housing price performance. Therefore, shrinkage estimator, spatial hedonic model, temporal aggregation and seasonality analysis are important in enhancing the methodological aspects in constructing hedonic price index. In conclusion, the improved house price index can be used in formulating more effective housing policies and investment strategies. 2017 Thesis http://eprints.utm.my/id/eprint/79104/ http://eprints.utm.my/id/eprint/79104/1/ChengChinTiongPFGHT2017.pdf application/pdf en public phd doctoral Universiti Teknologi Malaysia, Faculty of Geoinformation and Real Estate Faculty of Geoinformation and Real Estate
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	G70.212-70.215 Geographic information system
spellingShingle	G70.212-70.215 Geographic information system Cheng, Chin Tiong Methodological enchancement of hedonic price index in Malaysia
description	Housing market is one of the largest asset sectors in Malaysia. Several parties are concerned about the performance of housing market including government, financial institution, market player and public. A proper computation of house price index using hedonic model is critical in monitoring housing performance to avoid biased estimation which due to complexity and misspecification of the model. This study has enhanced the conventional hedonic price index model through a combination of regression modelling and spatial model in order to yield more reliable house price index. The studied sample comprises 6,420 transactions of double storey terrace houses in Johor Bahru from year 2006 until year 2011. This study examined three types of regression modelling namely shrinkage, semiparametric and ordinary least squares method in constructing spatial hedonic price index model and conventional hedonic price index model respectively. An optimal hedonic price index model was ascertained according to the predictive power, accuracy and consistency test in the study. The result found that shrinkage estimator is robust when it comes to perform spatial hedonic price index model as compared to ordinary least squares and semiparametric method. Moreover, the house price index is further enhanced using temporal aggregation and seasonality analysis. The results show that seasonal adjusted monthly index is more effective in monitoring housing price performance. Therefore, shrinkage estimator, spatial hedonic model, temporal aggregation and seasonality analysis are important in enhancing the methodological aspects in constructing hedonic price index. In conclusion, the improved house price index can be used in formulating more effective housing policies and investment strategies.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Cheng, Chin Tiong
author_facet	Cheng, Chin Tiong
author_sort	Cheng, Chin Tiong
title	Methodological enchancement of hedonic price index in Malaysia
title_short	Methodological enchancement of hedonic price index in Malaysia
title_full	Methodological enchancement of hedonic price index in Malaysia
title_fullStr	Methodological enchancement of hedonic price index in Malaysia
title_full_unstemmed	Methodological enchancement of hedonic price index in Malaysia
title_sort	methodological enchancement of hedonic price index in malaysia
granting_institution	Universiti Teknologi Malaysia, Faculty of Geoinformation and Real Estate
granting_department	Faculty of Geoinformation and Real Estate
publishDate	2017
url	http://eprints.utm.my/id/eprint/79104/1/ChengChinTiongPFGHT2017.pdf
_version_	1747818147531980800

Methodological enchancement of hedonic price index in Malaysia

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