Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach

Rita Yi Man Li, Ka Yi Cheng and Muhammad Shoaib
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Ka Yi Cheng: Sustainable Real Estate Research Center/HKSYU Real Estate and Economics Research Lab, Department of Economics and Finance, Hong Kong Shue Yan University, Hong Kong, China
Muhammad Shoaib: Department of Construction Engineering and Management, School of Civil and Environmental Engineering, National University of Science and Technology, Islamabad 44000, Pakistan

Sustainability, 2018, vol. 10, issue 4, 1-17

Abstract: Various researchers have explored the adverse effects of walled buildings on human health. However, few of them have examined the relationship between walled buildings and private housing estates in Hong Kong. This study endeavors to fill the research gap by exploring the connections among walled-building effects, housing features, macroeconomic factors, and housing prices in private housing estates. Specifically, it reveals the relationship between walled buildings and housing prices. Eight privately owned housing estates are selected with a total of 11,365 observations. Results are analyzed to study the factors that affect the housing price. Firstly, unit root tests are carried out to evaluate if the time series variables follow the unit root process. Secondly, the relationship between walled buildings and housing price is examined by conducting an artificial neural network. We assumed that the housing price reduces due to walled-building effects, given that previous literature showed that heat island effect, and blockage of natural light and views, are common in walled-building districts. Moreover, we assume that housing price can also be affected by macroeconomic factors and housing features, and these effects vary among private housing estates. We also study these impacts by using the two models. Recommendations and possible solutions are suggested at the end of the research paper.

Keywords: heat island effect; walled buildings; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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