HEDONIC PRICING MODEL (HPM) ON SOUTH TANGERANG RESIDENTIAL PROPERTY VALUE
DOI:
https://doi.org/10.21837/pm.v23i35.1681Keywords:
Hedonic Pricing Model (HPM), property value, residential propertyAbstract
This study investigates the effects of location, structural, and environmental attributes on residential property values in South Tangerang City, Indonesia. The research employs the Hedonic Pricing Model (HPM), formulated mathematically using the multiple linear regression approach to determine the relative contribution given by these attributes. To achieve the objective, data were collected from information on residential properties in South Tangerang City which is accessible on various property buying and selling websites. The data collection was limited from July 2023 to January 2024. The results showed that some variables affected the value of residential properties, such as distances to KRL stations, public parks, top high schools, and the Central Business District (CBD), as well as building areas, land areas, and the number of rooms (bathrooms and bedrooms). However, other variables, such as distances to malls, hospitals, universities, and population density, had no partial effect on residential property values. If we look at the types of variables, the standardized coefficient beta test revealed that building areas were the most dominant variable affecting the property values in the region. This finding is different from other results, showing that property values are local. The influence of property attributes can vary across regions, so the impacts and relationships are different, too.
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