THE DETERMINANTS OF RESIDENTIAL VALUES: THE HIERARCHICAL AND STATISTICAL APPROACHES

Abstract

This paper considers the determinants of residential values from a hierarchical approach based on market experience using a system of Likert Scaling. The approach is tested initially by statistical methods based on a stepwise selection in an ordinary least squares model. The results, however, seem to indicate the presence of multicollinearity, and ridge regression is used to screen the variables and to help select the appropriate model. The study was carried out in Singapore in relation to the rental value of a cluster of 114 high rise apartments in the prime Orchard Road area. The data were collected by Yeo Swee Ching, and both he and Lee Hin Tak used them as a basis for their student dissertations under the author's guidance. This paper sets out some of the methodology and findings of the investigations.

Citation

GREAVES, M. (1985), "THE DETERMINANTS OF RESIDENTIAL VALUES: THE HIERARCHICAL AND STATISTICAL APPROACHES", Journal of Valuation, Vol. 3 No. 1, pp. 5-23. https://doi.org/10.1108/eb007964