The Market Valuation of Interior Design and Developers strategies: a simple Theory and some Evidence

Charles Leung, Wai Yip Ma and Jun Zhang

MPRA Paper from University Library of Munich, Germany

Abstract: How much do the market values of housing reflect its interior design? Does the interior design interact with other housing attributes? Following the recent research based on “graph theory,” this paper confirms the importance of internal design variables in a hedonic pricing model, which is applied to a large dataset of high-rise apartment buildings in Asia. The evidence is consistent with a simple theory that developers strategically use interior design to “dilute” the effect of location, which leads to a form of endogenous multi-collinearity. Directions for future research are also discussed.

Keywords: endogenous multi-collinearity; interior design; market valuation; dummy variables; interaction terms (search for similar items in EconPapers)
JEL-codes: R10 R20 R21 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Market Valuation of Interior Design and Developer Strategies: A Simple Theory and Some Evidence (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43896

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