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Effect of spatial design modification on Malaysian low-cost residential property value: a hedonic price model

Umar Raji, Abdulazeez and Pathrose Gomez, Christy (2016) Effect of spatial design modification on Malaysian low-cost residential property value: a hedonic price model. In: 8th International Real Estate Research Sysposium (IRERS 2016).

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Abstract

Spatial modification of terrace house in Malaysia is initiated by homeowners to satisfy their needs. Modification is more prevalent within the low income group occupying low-cost housing units due to their nature of their family size. The aim of this research is to develop a valuation model for low-cost terrace house spatial modification. This study explores the effects of post-occupancy changes and spatial modification in low-cost terrace housing. Additionally it is to establish whether spatial modification being carried-out by homeowners has any price premium associated with their property value. The data was analyzed quantitatively using regression analysis. Each sample unit (homeowner) was provided with a questionnaire to obtain information on spatial modifications and key building related characteristics. The regression was done using both enter and stepwise methods. The strong recommendation of the study is that homeowners of low-cost terrace housing should clearly consider spatial modifications by prioritizing value enhancement objectives aimed at enhancing opportunities for social mobility. The findings indicate That the critical factors influencing residential property value of spatially modified low-cost terrace housing are Sale year (age), Number of bedrooms, Plot area, Gross floor area, Modified area, Extra-kitchen, Extra-bedroom, Extra-storage. Whilst, a price (value) premium on their current investment of 19.3%, 4.7% and 8.4% can be attained by adding extra-kitchen, bedroom and kitchen respectively. The results showed that the variables accounted for R2 = 86.6% of the variance in regression. Hence, the hedonic house value model is proposed to help homeowners in spatial modification appraisal for property value enhancement.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Low-cost housing; spatial design modification; hedonic price model; residential property value
Subjects: T Technology > T Technology (General)
Divisions: Faculty of Technology Management and Business > Department of Construction Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 13 Aug 2018 03:26
Last Modified: 13 Aug 2018 03:26
URI: http://eprints.uthm.edu.my/id/eprint/8375
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