Housing Market in Malaga: An Application of the Hedonic Methodology



TABLE 2

Estimation results of hedonic price model

Variables

COEFFICIENTS

T-
Statistic

PROB.

T-STAT

STANDARDIZED
COEFFICIENTS

CONSTANT

11.4431

236.8905

0.0000

-

SURFACE AREA

0.0044

14.0600

0.0000

0.7237

(SURFACE AREA)2

-2.99E-06

-6.4759

0.0000

-0.3530

NUMBER OF ROOMS

0.0235

2.5089

0.0122

0.0506

NUMBER OF BATHROOMS

0.1720

5.8588

0.0000

0.2871

(NUMBER OF BATHROOMS)2

-0.0141

-2.1521

0.0315

-0.1265

AGE OF THE BUILDING

-0.0025

-3.1471

0.0017

-0.0603

FLOORS

-0.0103

-5.2621

0.0000

-0.0627

DISTRICT2

0.1430

4.6906

0.0000

0.0703

DISTRICT4

-0.0308

-2.1053

0.0354

-0.0221

DISTRICT5

-0.1581

-6.1784

0.0000

-0.0687

DISTRICT6

-0.0462

-3.2302

0.0013

-0.0372

DISTRICT7

-0.0338

-2.0636

0.0392

-0.0233

DISTRICT10

0.0334

1.6728

0.0945

0.0230

DISTANCE TO DOWNTOWN

0.0699

4.6526

0.0000

0.0523

PROXIMITY TO THE SEASIDE

0.1266

7.2538

0.0000

0.0931

APARTMENT/STUDIO

-0.0858

-2.2651

0.0236

-0.0273

DETACHED HOUSE

0.5215

3.0785

0.0021

0.0622

ATTIC FLAT

0.0781

1.7948

0.0728

0.0198

NEW

0.0406

2.5225

0.0117

0.0320

NEEDING REFURBISHING

-0.0948

-6.4510

0.0000

-0.0587

CARETAKER

0.0475

3.2322

0.0012

0.0301

ELEVATOR

0.0469

3.5336

0.0004

0.0466

PRIVATE PARKING

0.1016

7.0954

0.0000

0.0997

POOR NATURAL LIGHT

-0.1777

-12.6367

0.0000

-0.1080

DOUBLE GLAZING

0.0265

1.0787

0.2808

0.0120

BUILT-IN WARDROBES

0.0463

4.7398

0.0000

0.0459

d1

-0.4898

-10.7411

0.0000

-0.1100

d2___________________________

___________0.4145

5.0281

0.0000

________0.0931

Dependent Variable
Observations

R2-adjusted

Regression Standard error
Mean of the dependent variable
S.D. of dependent variable
F Statistic

Prob (F Statistic)

Theil Coefficient

Price (in log)

1996

0.8314

0.2034

12.2233

0.4953

352.2755

0.0000

___________________0.0080

To evaluate the results, the calculation of the coefficients for the variables "surface area
squared" and "number of bathrooms squared", were based on the procedure carried out by
Lassibille (1994, p.115). On the other hand, the impact of dummy variables on housing prices
was calculated by applying the methodology of Halvorsen and Palmquist (1980). Once these
procedures were carried out, Table 3 shows the relevance of each variable for the estimated



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