Journal of Housing and the Built Environment

, Volume 22, Issue 4, pp 359–368 | Cite as

Modeling Hong Kong real estate prices

  • Lennon H. T. Choy
  • Stephen W. K. Mak
  • Winky K. O. Ho


This paper attempts to estimate real estate prices from a Hong Kong perspective. A hedonic price model is estimated utilizing housing transaction data during a period of relatively stable property price movements. Empirical results suggest that while a residential property of larger size, higher floor level, and better view commands a higher transaction price, a property lying closer to the mass transit railway station also commands a price premium. The nonlinear effect of floor level has also been confirmed to exert an impact upon prices. Furthermore, an apartment located on an “unlucky number” floor is not preferred by homebuyers and is usually transacted at a price discount.


Hedonic price model Nonlinear effect Feng shui 


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Copyright information

© Springer Science+Business Media B.V. 2007

Authors and Affiliations

  • Lennon H. T. Choy
    • 1
  • Stephen W. K. Mak
    • 1
  • Winky K. O. Ho
    • 2
  1. 1.Department of Building and Real EstateHong Kong Polytechnic UniversityHung Hom, KowloonHong Kong
  2. 2.Department of Real Estate and Construction, 5/F., Knowles BuildingUniversity of Hong KongHong KongHong Kong

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