64th ISI World Statistics Congress - Ottawa, Canada

64th ISI World Statistics Congress - Ottawa, Canada

Implicit pricing of housing characteristics using hedonic price and demand model estimation: The case of the Philippines

Author

MR
Maureen Ane D. Rosellon

Co-author

  • F
    Faith Christian Q. Cacnio
  • M
    Maureen Ane D. Rosellon
  • A
    Aiza Maris C. Valenzuela

Conference

64th ISI World Statistics Congress - Ottawa, Canada

Format: CPS Abstract

Abstract

A house accounted for roughly 80 percent of the total value of assets of Filipino households based on the 2018 Consumer Finance Survey. Given that it can reflect the wealth holdings of majority of Filipino households, it is important for housing market participants, especially the new entrants, to understand how residential properties are valued. Using the Consumer Finance Survey and Family Income and Expenditure Survey datasets, this study aims to empirically assess the key considerations of households in valuing their houses and determine whether implicit price of each housing characteristics (structural and neighborhood) varies across areas and periods. Estimation of hedonic house price models using both spatial and non-spatial econometric methods will be explored. The second-stage demand models for key neighborhood characteristics will also be estimated using seemingly unrelated regression to provide additional insights on hedonic price analysis. Findings from econometric exercises will be used to craft possible policy interventions that can address housing-related concerns in the Philippines.