Price Determinants of Flats Purchased for the First Time in Prague

• Název práce v češtině: Price Determinants of Flats Purchased for the First Time in Prague
• Název v anglickém jazyce: Price Determinants of Flats Purchased for the First Time in Prague
• Klíčová slova: Hedonický cenový model, analýza reziduí, metoda nejmenších čtverců, cenové determinanty, trh s byty, Praha
• Klíčová slova anglicky: hedonic pricing model, residual analysis, OLS regression, price determinants, flat market, Prague
• Akademický rok vypsání: 2016/2017
• Typ práce: bakalářská práce
• Jazyk práce: angličtina
• Ústav: Institut ekonomických studií (23-IES)
• Vedoucí / školitel: doc. Ing. Tomáš Cahlík, CSc.
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 25.04.2017
• Datum zadání: 25.04.2017
• Datum a čas obhajoby: 13.06.2018 09:00
• Místo konání obhajoby: Opletalova - Opletalova 26, O105, Opletalova - místn. č. 105
• Datum odevzdání elektronické podoby: 02.05.2018
• Datum proběhlé obhajoby: 13.06.2018
• Oponenti: Mgr. Ing. Matěj Nevrla, Ph.D.

Seznam odborné literatury

Lancaster, K. J. (1966). A New Approach to Consumer Theory. Journal of Political Economy, 74. Retrieved from https://econpapers.repec.org/article/ucpjpolec/v_3a74_3ay_3a1966_3ap_3a132.htm

Malpezzi, S. (2003). Hedonic pricing models: a selective and applied review. Housing economics and public policy, pp. 67-89.

Melichar, J., Vojáček, O., Rieger, P., & Jedlička, K. (2009). Measuring the value of urban forest using the hedonic price approach. Regional Studies 2, pp. 13–20.

Monson, M. (2009). Valuation Using Hedonic Pricing Model. Cornell Real Estate Review 7, pp. 62-73

Sirmans, G. S., Macpherson, D. A., & Zietz, E. N. (2005). The Composition of Hedonic Pricing Models. Journal of Real Estate Literature, 13(1), pp. 1-44.

Předběžná náplň práce v anglickém jazyce

Research question and motivation

The thesis will be based on the hedonic pricing theory which states that the price of a flat is a combination of the implicit prices of the flat’s characteristics. The aim of the study will be to determine the chosen characteristics and their implicit prices. Moreover, we are interested in finding out whether people are willing to pay a premium for any particular cardinal direction of windows inside a flat. Finally, the study will try to estimate the fitted values and conduct residual analysis to determine flats that are overvalued and undervalued. The findings might be important for all types of economic agents ranging from a policy maker to an individual seeking to find the best place to live.


Contribution

Most of the Hedonic pricing literature related to Prague flat market used data from reality.cz or sreality.cz (Melichar et al., 2009; Sklenářová, 2015; Lipán, 2016), our data will come from one of the larger flat developers, Vivus (see vivus.cz) which operates in Prague. This will allow us to analyse the prices of flats purchased for the first time from 8 different projects in Prague. Moreover, additional explanatory variables will be added to the model and tested. For example, the cardinal direction of flats’ windows or a dummy variable, basement.


Methodology

First, econometric models will be suggested based on the hedonic pricing theory. This will be followed by estimating the econometric models using ordinary least squares method. Moreover, residual analysis will be performed. There will be 10 estimated models in total because Vivus has 8 projects that are located in different locations in Prague. Furthermore, two of these projects were divided into 3 stages. Therefore we will also be estimating 2 pooled cross sections where year dummy variables, as well as, their interactions with the key explanatory variables will be present.