CAPABILITIES OF REVEALED PREFERENCE METHOD FOR HERITAGE PROPERTY VALUATION
DOI:
https://doi.org/10.21837/pm.v17i9.613Keywords:
revealed preference method, shophouse heritage property, ordinary least square, rank transformation regression, thin marketAbstract
In recent years, the increasing availability of large databases on real estate transaction has opened up new research possibilities using revealed preference method. Therefore, the aim of this paper is to investigate the capability of revealed preference method of ordinary least square and rank transformation regression models in valuing shophouse heritage property. This paper has provided the first application that consider the thin market effects by comparing the ordinary least square and rank transformation regression in obtaining the market value of shophouse heritage property. The original dataset consists of 893 commercial properties transacted from 2004 to 2014 in Kota Bharu, Kelantan Malaysia. After filtration process, only 25 units of shophouse heritage property were available and valid to be used. The findings suggest that rank transformation regression model performs better than the ordinary least square model with double-log as the best model. This suggests that rank transformation regression is capable for heritage property valuation in thin market situation.Downloads
References
Anderson, J. D., Hudson, D., Harri, A., & Turner, S. (2007). A new taxonomy of thin markets. In Southern Agriculture Economics Association Annual Meeting, Mobile, AL.
Aversano, N., & Ferrone, C. (2012). The accounting problem of heritage assets. Advanced Research in Scientific Areas 2012, (3.-7), 574-578.
Brooks, C., & Tsolacos, S. (2010). Real estate modelling and forecasting. Cambridge University Press.
Cronan, T., Epley, D., & Perry, L. (1986). The use of rank transformation and multiple regression analysis in estimating residential property values with a small sample. Journal of Real Estate Research, 1(1), 19-31.
Greffe, X. (1998). The economic value of heritage. Colloquio di Ahmedabad. National Trust of India.
Holden, J. (2004). Capturing cultural value. London: Demos.
Iman, R. L. (1974). A power study of a rank transform for the two-way classification model when interaction may be present. Canadian Journal of Statistics, 2(1-2), 227-239.
Jacobus, C. J. (2006). Real estate principles. Mason (Ohio): Thomson/South-Western.
Joslin, A. (2005). An investigation into the expression of uncertainty in property valuations. Journal of Property Investment & Finance, 23(3), 269-285.
Landriani, L., & Pozzoli, M. (2013). Management and valuation of heritage assets: A comparative analysis between Italy and USA. Springer Science & Business Media.
Lazrak, F., Nijkamp, P., Rietveld, P., & Rouwendal, J. (2014). The Market value of cultural heritage in urban areas: An application of spatial hedonic pricing. Journal of Geographical Systems, 16(1), 89-114.
Leichenko, R. M., Coulson, N. E., & Listokin, D. (2001). Historic preservation and residential property values: An analysis of Texas cities. Urban Studies, 38(11), 1973-1987.
Mason, R. (2002). Assessing the values of cultural heritage. In M. de la Torre (Ed.), Assessing values in conservation planning: Methodological issues and choices. Los Angeles: The Getty Conservation Institute.
Mattia, S., Oppio, A., & Pandolfi, A. (2012). Testing the use of contingent valuation method in real estate market: First results of an experiment in the city of Milan. Aestimum, 721-734.
Mohamad, J. (2012). Assessment of property values in thin market using rank transformation regression and multiple regression analysis. Universiti Teknologi Malaysia, Faculty of Geoinformation and Real Estate.
Montgomery, D. C. (2008). Design and analysis of experiments. John Wiley & Sons.
O’Brien, D. (2010). Measuring the value of culture: A report to the Department for Culture Media and Sport.
Ruijgrok, E. C. M. (2006). The three economic values of cultural heritage: A case study in the Netherlands. Journal of Cultural Heritage, 7(3), 206-213.
Selwood, S. (2010). Making a difference: The cultural impact of museums; an Essay for NMDC.
Suriatini Ismail. (2005). Hedonic modelling of housing markets using geographical information system (GIS) and spatial statistics: a case study of Glasgow, Scotland. University of Aberdeen.
VanVoorhis, C. R. W., & Morgan, B. L. (2007). Understanding power and rules of thumb for determining sample sizes. Tutorials in Quantitative Methods for Psychology, 3(2), 43-50.
Wyatt, P. (2013). Property valuation. John Wiley & Sons.
Yung, H. K. (2007). Architectural heritage conservation in Hong Kong: an empirical analysis. HKU Theses Online (HKUTO). The University of Hong Kong (Pokfulam, Hong Kong).
Downloads
Published
How to Cite
Issue
Section
License
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.
The authors hold the copyright without restrictions and also retain publishing rights without restrictions.
