Application of the hedonic pricing model to real estate valuation in Hanoi, Vietnam
School of Economics, Hanoi University of Industry, 298 Cau Dien, Bac Tu Liem, Hanoi, Vietnam.
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 1908–1915
Publication history:
Received on 04 October 2024; revised on 15 November 2024; accepted on 18 November 2024
Abstract:
The value of real estate is determined by the relationship between supply and demand in the market, location, and the physical structure of the land and surrounding area. During the development of infrastructure in the capital area of Hanoi, Vietnam, changes have occurred that directly impact housing prices. This study applies the Hedonic pricing model and asking prices to predict the market value of real estate and establish the correlation between the factors affecting land prices in Hanoi in 2023 and 2024. The results show that six main factors influence real estate prices: area, number of bedrooms, proximity to the city center, type, amenities, and structure. Among these, proximity to the city center has a negative impact, while the remaining factors have a positive impact on housing prices in this area. Based on these results, participants in the real estate market can make accurate predictions about housing prices, and market regulators can gain a comprehensive view of this market, particularly the factors influencing housing prices.
Keywords:
Real estate; Hedonic pricing model; Hanoi capital; Real estate market
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0