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A conjoint analysis of buyers’ preferences for residential property

Mar Iman, Abdul Hamid and Fu, Yek Pieng and Christopher, Gan (2012) A conjoint analysis of buyers’ preferences for residential property. International Real Estate Review, 15 (1). pp. 73-105. ISSN 1029-6131

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Abstract

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.

Item Type:Article
Subjects:G Geography. Anthropology. Recreation > G Geography (General)
Divisions:Geoinformation and Real Estate
ID Code:30386
Deposited By:INVALID USER
Deposited On:21 Apr 2013 11:24
Last Modified:13 Oct 2017 21:56

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