Price determinant model of serviced apartment in Johor Bahru city centre

Abstract

Today, function of a house has changes from only physical shelter to wealth preservation and also become symbol of achievement. Due to these changes, the price of house also no longer being determined by government but determine by developer. They has freedom to pricing their project and has resulted irregular price patterns that confuses property market participants especially purchasers. In addition, there are only few published academic studies concerning the serviced apartment market. Regarding these matters, this dissertation provides a starting point for formulating a hedonic model of price determinants of service apartment. In order to accomplish this aim, two objectives were formulated; firstly to review the price determinant factors of service apartment and secondly to develop a price determinant model for service apartments in Johor Bahru city centre. To achieve objective number one, study on literature of price determinant of service apartment has been done. It is notable that different study area will have different price determinant factor due to the people sentiment in that study area. While for objective two, the data being collected from transaction data of selected project and SPSS software has been use to analyze the data and generate a hedonic model. Practically, by studying this aspect of property market it will give benefit to developer, investor and potential purchaser during selection of property to purchase. They might identify certain degree of element that significant to service apartment price. It was found that apart from built-up area and number of bathroom, in Johor Bahru city centre, price of service apartment dependent on these attributes; accessibility, distance from Customs, Immigration, and Quarantine Complex , actual view from unit, level of unit and existing of shuttle bus service. As a conclusion, as for service apartment, the price determinant is categorized into three main attribute class namely as location attribute, structural or physical attributes and neighborhood characteristic.