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Variation Across Price Segments and Locations: A Comprehensive Quantile Regression Analysis of the Sydney Housing Market
Author(s) -
Waltl Sofie R.
Publication year - 2016
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.12177
Subject(s) - quantile regression , hedonic regression , econometrics , house price , variation (astronomy) , economics , bust , metropolitan area , boom , quantile , imputation (statistics) , hedonic index , regression , regression analysis , statistics , price index , geography , mathematics , archaeology , environmental engineering , astrophysics , missing data , engineering , physics
Standard house price indices measure average movements of average houses in average locations belonging to an average price segment and hence obscure spatial and cross‐sectional variation of price appreciation rates even within a single metropolitan area. This article combines penalized quantile regression techniques with the hedonic imputation approach to reveal such kind of variation. The method is applied to house transactions from Sydney between 2001 and 2014. The analysis finds significant variation across sub‐markets over time and in particular during the boom‐and‐bust cycle peaking in 2004. Appreciation rates were highest for suburban, low‐priced and lowest for inner‐city, high‐priced houses.