MIT Libraries homeMIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • MIT Libraries
  • MIT Theses
  • Theses - Program in Real Estate Development
  • Program in Real Estate Development - Master's degree
  • View Item
  • DSpace@MIT Home
  • MIT Libraries
  • MIT Theses
  • Theses - Program in Real Estate Development
  • Program in Real Estate Development - Master's degree
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Using hedonic pricing model to valuate the relationship between property price and air pollution's spatial distribution : evidence from Beijing

Author(s)
Fang, Sai,S.M.Massachusetts Institute of Technology.
Thumbnail
Download1019904283-MIT.pdf (3.613Mb)
Other Contributors
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
Advisor
Siqi Zheng.
Terms of use
MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission. http://dspace.mit.edu/handle/1721.1/7582
Metadata
Show full item record
Abstract
Over the past several decades, the real estate market has surged in Beijing. Meanwhile, Beijing suffers severe air pollution now and then. Because of the dissatisfaction of air quality, clean air becomes a highly valued factor of the overall quality of life. When people choose to buy properties, they would be willing to pay more for a unit that is located in less polluted areas than for an otherwise identical unit that is located in more polluted areas. This study aims to establish a relationship between air pollution's spatial distribution and property price by using historical air quality record and property transaction data in Beijing. Although people cannot purchase clean air directly, variations in the air quality of different areas should be indirect reflected in housing prices. Employing the hedonic pricing model, the results suggest a strong positive relationship between a unit's resale price and the air quality of the area where the unit is located, meaning that properties that are located in an area with relatively better air quality are sold at a premium and vice versa. Besides, by using a matching regression, relationship between air quality's seasonal variation and property price is discovered, although it is not statistically significant. Another matching regression confirms that compared to property buyers, property renters care less about the air quality of the area where the unit is located, but care more about the unit's other specific locational attributes and physical attributes, such as job accessibility and interior decoration.
Description
Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2017
 
Cataloged from PDF version of thesis.
 
Includes bibliographical references (pages 65-66).
 
Date issued
2017
URI
http://hdl.handle.net/1721.1/113479
Department
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development
Publisher
Massachusetts Institute of Technology
Keywords
Center for Real Estate. Program in Real Estate Development.

Collections
  • Program in Real Estate Development - Master's degree
  • Program in Real Estate Development - Master's degree

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries homeMIT Libraries logo

Find us on

Twitter Facebook Instagram YouTube RSS

MIT Libraries navigation

SearchHours & locationsBorrow & requestResearch supportAbout us
PrivacyPermissionsAccessibility
MIT
Massachusetts Institute of Technology
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.