Open AccessInternational Real Estate Review
Author(s) -
Abdul Hamid Mar Iman,
Christopher Gan,
Christopher Gan
Publication year - 2012
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100149
Subject(s) - conjoint analysis , product (mathematics) , real estate , preference , sample (material) , yield (engineering) , reputation , business , econometrics , marketing , property (philosophy) , computer science , economics , microeconomics , mathematics , social science , philosophy , chemistry , geometry , materials science , chromatography , epistemology , sociology , metallurgy , finance
This study evaluates the preferences of middle-high income earners for newly designed high-cost residential property attributes in their purchase decision, by using the conjoint method, whereby the buyers¡¦ ¡¥trade-offs¡¦ of different product attributes are measured. The fractional factorial design is used to create eighteen sets of product profiles based on a combination of the six most important attributes that determine the purchase decision of buyers. The preference rating of the respondents is then decomposed to yield part-worth utility for each attribute level. A regression analysis shows that the most pertinent attributes of high-cost residential properties trade-off by the respondents, are type of property, design and features, price, built-up area, location, and reputation of the developer. Together, these attribute explain about 74% of the buyers' expressed utility of the product purchased. By using a hold-out sample of respondents, a conjoint analysis has predicted the buyers' expressed utility with a reasonable level of accuracy.