Testing for the existence of housing sub-markets in Penang, Malaysia
This study attempts to demonstrate that residential sub-markets do exist in any geographic area by takingresidential properties in Penang, Malaysia, as a case. The hedonic model was used to identify the existence ofsub-markets in the study area. The model involved a clean sample of 120 house prices...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Geoinformation Science and Engineering, University Teknologi Malaysia
2009
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| Subjects: | |
| Online Access: | http://eprints.utm.my/id/eprint/21940/1/SuriatiniIsmail2009_TestingfortheExistenceofHousing.pdf http://eprints.utm.my/id/eprint/21940/ |
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| Summary: | This study attempts to demonstrate that residential sub-markets do exist in any geographic area by takingresidential properties in Penang, Malaysia, as a case. The hedonic model was used to identify the existence ofsub-markets in the study area. The model involved a clean sample of 120 house prices in 2006 and eightindependent structural and locational variables. Six major areas in Penang were used to represent a priori spatialsub-markets in the house price model. The results showed that the sub-market variables appeared to bestatistically insignificant in the hedonic model. However, results from paired-sample t-test and Chow Testshowed that sub-markets did exist in Penang. This study concluded that it is insufficient to rely only on aregression model to test for sub-market existence. Instead, some appropriate diagnostic tests must be applied tothe sample |
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