Market heterogeneity and the determinants of Paris apartment prices: A quantile regression approach

Charles-Olivier Amédée-Manesme, Michel Baroni (), Fabrice Barthélémy and Francois des Rosiers
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Charles-Olivier Amédée-Manesme: Université Laval, Canada
Fabrice Barthélémy: CEMOTEV, Université de Versailles Saint-Quentin-en-Yvelines; THEMA, Université de Cergy-Pontoise, France
Francois des Rosiers: Université Laval, Canada

Urban Studies, 2017, vol. 54, issue 14, 3260-3280

Abstract: In this paper, the heterogeneity of the Paris apartment market is addressed. For this purpose, quantile regression is applied – with market segmentation based on price deciles – and the hedonic price of housing attributes is computed for various price segments of the market. The approach is applied to a major data set managed by the Paris region notary office (Chambre des Notaires d’Île de France), which consists of approximately 156,000 transactions over the 2000–2006 period. Although spatial econometric methods could not be applied owing to the unavailability of geocodes, spatial dependence effects are shown to be adequately accounted for through an array of 80 location dummy variables. The findings suggest that the relative hedonic prices of several housing attributes differ significantly among deciles. In particular, the elasticity coefficient of the apartment size variable, which is 1.09 for the cheapest units, is down to 1.03 for the most expensive ones. The unit floor level, the number of indoor parking slots, as well as several neighbourhood attributes and location dummies all exhibit substantial implicit price fluctuations among deciles. Finally, the lower the apartment price, the higher the potential for price appreciation over time. While enhancing our understanding of the complex market dynamics that underlie residential choices in a major metropolis such as Paris, this research provides empirical evidence that the QR approach adequately captures heterogeneity among house price ranges, which simultaneously applies to housing stock, historical construct and social fabric.

Keywords: hedonics; housing sub-markets; market heterogeneity; market segmentation; quantile regression; 特å¾; ä½ æˆ¿æ¬¡çº§å¸‚åœº; 市场异质性; 市场部门细分; åˆ†ä½ æ•°å›žå½’ (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Market heterogeneity and the determinants of Paris apartment prices: A quantile regression approach (2016)
Working Paper: Market Heterogeneity and Determinants of Paris Apartment Prices: A Quantile Regression Approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:54:y:2017:i:14:p:3260-3280

DOI: 10.1177/0042098016665955

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