A priori spatial segmentation of commercial property market using hedonic price modelling
The improvement of property price modelling accuracy using property market segmentation approaches is well documented in the housing market. However, that cannot be said of the commercial property market which is adjudged to be volatile, heterogeneous and thinly traded. This study, therefore, determ...
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| Format: | Article |
| Language: | English |
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sciendo
2021
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| Online Access: | http://eprints.uthm.edu.my/6244/ http://eprints.uthm.edu.my/6244/1/J12955_82fd01b14a6c1747c0d3190535d81e2b.pdf |
| _version_ | 1848888755015909376 |
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| author | Usman, Hamza Lizam, Mohd Burhan, Burhaida |
| author_facet | Usman, Hamza Lizam, Mohd Burhan, Burhaida |
| author_sort | Usman, Hamza |
| building | UTHM Institutional Repository |
| collection | Online Access |
| description | The improvement of property price modelling accuracy using property market segmentation approaches is well documented in the housing market. However, that cannot be said of the commercial property market which is adjudged to be volatile, heterogeneous and thinly traded. This study, therefore, determines if the commercial property market in Malaysia is spatially segmented into submarkets and whether accounting for the submarkets improves the accuracy of price modelling. Using a 11,460 shop-offices transaction dataset, the commercial property submarkets are delineated by using submarket binary dummies in the market-wide model and estimating a separate hedonic model for each submarket. The former method improves the model fit and reduces error by 5.6% and 6.5% respectively. The commercial property submarkets are better delineated by estimating a separate hedonic model for each submarket as it improves the model fit by about 7% and reduces models’ error by more than 10%. This study concludes that the Malaysian commercial property market is spatially segmented into submarkets. Modelling the submarkets improves the accuracy and correctness of price modelling. |
| first_indexed | 2025-11-15T20:15:19Z |
| format | Article |
| id | uthm-6244 |
| institution | Universiti Tun Hussein Onn Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T20:15:19Z |
| publishDate | 2021 |
| publisher | sciendo |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uthm-62442022-01-27T06:41:18Z http://eprints.uthm.edu.my/6244/ A priori spatial segmentation of commercial property market using hedonic price modelling Usman, Hamza Lizam, Mohd Burhan, Burhaida HB615-715 Entrepreneurship. Risk and uncertainty. Property HF5001-6182 Business The improvement of property price modelling accuracy using property market segmentation approaches is well documented in the housing market. However, that cannot be said of the commercial property market which is adjudged to be volatile, heterogeneous and thinly traded. This study, therefore, determines if the commercial property market in Malaysia is spatially segmented into submarkets and whether accounting for the submarkets improves the accuracy of price modelling. Using a 11,460 shop-offices transaction dataset, the commercial property submarkets are delineated by using submarket binary dummies in the market-wide model and estimating a separate hedonic model for each submarket. The former method improves the model fit and reduces error by 5.6% and 6.5% respectively. The commercial property submarkets are better delineated by estimating a separate hedonic model for each submarket as it improves the model fit by about 7% and reduces models’ error by more than 10%. This study concludes that the Malaysian commercial property market is spatially segmented into submarkets. Modelling the submarkets improves the accuracy and correctness of price modelling. sciendo 2021 Article PeerReviewed text en http://eprints.uthm.edu.my/6244/1/J12955_82fd01b14a6c1747c0d3190535d81e2b.pdf Usman, Hamza and Lizam, Mohd and Burhan, Burhaida (2021) A priori spatial segmentation of commercial property market using hedonic price modelling. REAL ESTATE MANAGEMENT AND VALUATION, 29 (2). pp. 16-28. https://doi.org/10.2478/remav-2021-0010 |
| spellingShingle | HB615-715 Entrepreneurship. Risk and uncertainty. Property HF5001-6182 Business Usman, Hamza Lizam, Mohd Burhan, Burhaida A priori spatial segmentation of commercial property market using hedonic price modelling |
| title | A priori spatial segmentation of commercial property market using hedonic price modelling |
| title_full | A priori spatial segmentation of commercial property market using hedonic price modelling |
| title_fullStr | A priori spatial segmentation of commercial property market using hedonic price modelling |
| title_full_unstemmed | A priori spatial segmentation of commercial property market using hedonic price modelling |
| title_short | A priori spatial segmentation of commercial property market using hedonic price modelling |
| title_sort | priori spatial segmentation of commercial property market using hedonic price modelling |
| topic | HB615-715 Entrepreneurship. Risk and uncertainty. Property HF5001-6182 Business |
| url | http://eprints.uthm.edu.my/6244/ http://eprints.uthm.edu.my/6244/ http://eprints.uthm.edu.my/6244/1/J12955_82fd01b14a6c1747c0d3190535d81e2b.pdf |