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An Hedonic Price Model of New Housing in Indonesia

Author/s: Supardi Samapatti, Linda Tay

Date Published: 1/01/2002

Published in: Volume 8 - 2002 Issue 3 (pages 203 - 211)

Abstract

This study investigates the prices of new housing in the Greater Jakarta Metropolitan Area, Indonesia. Based on the average sale prices of 149 new housing projects launched between January and June 1997, the ANOVA statistical tool is used to test whether different sizes of development adopt the same hedonic pricing model. Following this, multiple regression analyses are conducted to identify the hedonic factors and their impacts on the new house prices in small, medium and large developments. The study concludes that small, medium, and large-sized developments do not adopt the same hedonic pricing model. With the exception of small-sized developments hedonic model in which structural, locational and neighborhood characteristics are important determinants of prices, the medium and large-sized development hedonic models showed that only locational attributes have significant impact on house prices.

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Keywords

Hedonic Pricing Model - Housing Attributes - the Greater Jakarta Metropolitan Area

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