Policy support tool

Hedonic Property Pricing

Hedonic Property Pricing is the study of multi-correlation between environmental characteristics of a good and its sales price. It can be used to estimate monetary values for ecosystem services that directly affect amenities of properties which in turn are reflected in property prices.

Requirements for using the resource NEW
  • The Hedonic Property Pricing method requires large data sets of property sales statistics with physical characteristics of the property itself - and particularly for ecosystem services - e.g. characteristics of green infrastructure in the neighborhood
  • Medium-term (1-2 years)
  • Medium-demanding (6-12 PMs)
Potential benefits from using the resource
Recognised and established approach
Potentially compatible with national accounting standards
Provides both public and private economic rationales for providing ecosystem services /amenities from green infrastructure
Potential limitations from using the resource
Requires large panel data sets of property sales data
Requires extensive GIS pre-processing of neighbourhood characteristics
Results are sensitive to modeling assumptions regarding spatial auto-collinearity
Scale of application
Local
UN languages in which the resource is available
EN
Other languages in which the resource is available
Dutch
Finnish (Finland)
Spanish
Development stage
Full, working product
David N. Barton
[email protected]
Website
http://www.openness-project.eu/node/78
Links
OpenNESS project webpage
Upload or select existing file – Add new file
methodfactsheethedonic-property-pricing-method.pdf
Is the resource freely available?
No
Do you want to add more details?
No

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