Testing Housing Price Drivers in Santiago de Chile: A Hedonic Price Approach

Vergara-Perucich, Francisco

Keywords: housing economics, housing in developing countries, urban policy and planning, land markets and housing policy

Abstract

Hedonic modelling is an empirical analysis technique that is widely used to review the housing market and unpack the main determinants of price. A correct determination of housing price drivers allows a weighted prediction of the value of each dwelling for sale or rent. This paper reviews the fundamental determinants of housing prices that have been published in the literature to see which ones have a better predictive fit for the case of the housing market in the city of Santiago, Chile. From a record of 456,000 property transactions, a dataset composed of 11 explanatory variables is elaborated. Through a semi-logarithmic regression, 4 variables that contribute to explaining the formation of housing prices in Santiago, Chile, are identified. The results indicate that the socioeconomic characterisation of urban areas where housing is traded, the price of copper on the London Metal Exchange, the mortgage interest rate, the age of residential buildings are the main drivers for the main drivers of prices in Santiago. Given the crisis of access to housing in Chile, the article provides relevant information for decision-makers in housing policy.

Más información

Título según SCOPUS: ID SCOPUS_ID:85175177553 Not found in local SCOPUS DB
Título de la Revista: Critical Housing Analysis
Volumen: 10
Número: 2
Editorial: Institute of Sociology of the Czech Academy of Sciences
Fecha de publicación: 2023
Página de inicio: 44
Página final: 57
Idioma: Inglés
Financiamiento/Sponsor: Universidad de Las Américas
DOI:

10.13060/23362839.2023.10.2.558

Notas: SCOPUS - Scopus