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Determinants of House Prices in Mauritius: A Hedonic Price Model à la Quantile Bootstrapped Approach

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Abstract

This chapter probes into the forces which impound on house prices in Mauritius by using a unique database of 3,597 house owners. Despite many efforts made to get market data from major stakeholders, all efforts proved fruitless. In that respect, a survey was conducted for the analysis. Four key components of features are embedded in our analysis – namely, environmental, intrinsic, neighbourhood and owners’ characteristics. A rigorous and comprehensive analysis was undertaken by estimating quantile regressions based on bootstrapped standard errors to generate reliable results. Robust effects are noted in the cases of land value, the number of bathrooms, the number of toilets, the presence of swimming pool and district belongingness. Based on the conclusions obtained, a weighted house price index which incorporate distinct metrics, is being proposed. Policy-wise, different stakeholders can use our index to ensure proper house pricing, let alone cushioning borrowers from malpractices.

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Notes

  1. 1.

    One of the units of measurement for land or property.

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Author information

Authors and Affiliations

  1. University of Mauritius, Moka, Mauritius

    Indranarain Ramlall

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  1. Indranarain Ramlall
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Appendix

Appendix

Table 15.A.1 Quantile regressions
Full size table
Table 15.A.2 Quantile regression based on bootstrapped standard errors
Full size table
Table 15.A.3 Semi-log regression under bootstrapped approach
Full size table
Table 15.A.4 Summary of main findings
Full size table
Table 15.A.5 Summary statistics
Full size table
figure a
Table 15.A.6 Correlation coefficients
Full size table

|

garden

swimpool

watert ~ k

jogtrack

garage

riverl ~ e

numrooms

numtoi ~ s

numbat ~ s

sizeto ~ e

floora ~ a

valueh ~ e

valuel ~ d

rateai ~ u

garden

1

             

swimpool

0.1546

1

            

watertank

0.1356

0.0303

1

           

jogtrack

0.2278

0.1421

−0.026

1

          

garage

0.1212

0.0982

0.3351

0.0454

1

         

riverlake

0.1799

0.0038

0.0145

0.1768

0.0391

1

        

numrooms

−0.1512

−0.09

0.1651

−0.009

0.1681

0.1024

1

       

numtoilets

0.1846

0.3059

0.1502

0.1247

0.2744

0.0044

0.2232

1

      

numbathrooms

0.1763

0.3443

0.1448

0.1353

0.2424

−0.009

0.1721

0.8781

1

     

sizetoise

0.2049

0.1248

0.1254

0.1097

0.1448

−0.0132

0.0836

0.2421

0.2538

1

    

floorarea

0.1364

0.0814

0.0834

0.1085

0.1161

−0.0041

−0.0513

0.302

0.3415

0.2922

1

   

valuehouse

0.1549

0.3182

0.1227

0.1598

0.1841

−0.0664

−0.0203

0.4316

0.4449

0.2351

0.3084

1

  

valueland

0.3132

0.4258

0.1218

0.1421

0.0967

−0.0734

−0.2831

0.3441

0.3867

0.3048

0.281

0.5866

1

 

rateairpollu

−0.0371

−0.0606

−0.0487

−0.054

−0.1478

0.0522

0.145

−0.1211

−0.1104

−0.061

−0.0172

−0.0671

−0.0458

1

noisepollu

−0.0028

−0.0641

−0.0788

−0.0209

−0.171

0.0676

0.0693

−0.1043

−0.1103

−0.0524

−0.0202

−0.0571

−0.0277

0.7839

qualityinter

−0.2596

−0.1625

−0.0282

−0.073

0.0275

0.0451

0.4794

−0.108

−0.1503

−0.1365

−0.2329

−0.1684

−0.3932

−0.1087

qualitysew ~ e

−0.1933

−0.1279

−0.0338

−0.029

0.0053

0.0521

0.3813

−0.0559

−0.0909

−0.1076

−0.2014

−0.106

−0.3165

−0.1256

qualitywaste

−0.1914

−0.1633

−0.0276

−0.0123

0.0274

0.073

0.4215

−0.0877

−0.1209

−0.0579

−0.1934

−0.1234

−0.3402

−0.1103

qualitylife

−0.2984

−0.1842

−0.0052

−0.0511

0.0645

0.0246

0.4781

−0.088

−0.1333

−0.0987

−0.229

−0.1634

−0.419

−0.1669

monthlyinc

0.2228

0.2677

0.2846

0.0571

0.2516

−0.0185

0.0222

0.3298

0.3316

0.1777

0.2124

0.323

0.3924

0.1094

educlevel

0.1905

0.1675

0.2606

0.0703

0.266

−0.0021

0.0245

0.3262

0.3176

0.1366

0.1444

0.2512

0.2521

0.0125

workhours

−0.088

0.0155

0.2473

−0.0906

0.0749

−0.0437

0.1915

0.0004

0.0101

0.0204

0.01

0.0254

0.0341

0.3075

age

−0.0144

−0.0515

−0.1027

−0.0161

−0.0095

−0.0191

−0.0342

−0.0401

−0.0297

−0.0121

−0.0452

−0.0587

−0.0349

−0.1594

equityinv

0.0789

0.0743

0.0277

0.089

0.0614

0.0723

0.0855

0.1101

0.098

0.0957

−0.0235

0.0331

0.0015

−0.0084

wealth

0.2083

0.2828

0.1974

0.0974

0.2593

−0.0473

−0.0973

0.4261

0.4273

0.2893

0.2328

0.4352

0.4635

−0.2019

etnicity

−0.041

0.0039

−0.1579

−0.052

−0.1398

−0.0156

−0.0623

−0.0728

−0.0805

−0.1017

−0.112

−0.1001

−0.0769

0.0594

travelabroad

0.1654

0.1327

0.0874

0.1641

0.1619

0.0799

0.0837

0.3185

0.2969

0.0986

0.0412

0.1884

0.1313

−0.0805

maritalsta

−0.0144

0.034

0.1016

−0.0297

0.0565

−0.0269

0.0367

0.0374

0.0464

−0.0161

0.0041

0.0566

0.0795

0.0663

sleephours

−0.275

−0.1655

−0.0258

−0.1302

−0.0175

−0.0327

0.2468

−0.1708

−0.1672

−0.0734

−0.1767

−0.2104

−0.2899

0.0057

oustloan

0.1361

0.0848

0.0496

0.0397

0.0647

0.0076

−0.059

0.0646

0.072

0.0501

0.0578

0.0949

0.0637

0.071

creditcard ~ m

0.2363

0.2124

0.09

0.1026

0.0927

0.0858

0.0229

0.2529

0.2611

0.1245

0.1461

0.2103

0.2361

0.1726

|

noisep ~ u

qualit ~ r

quali ~ ge

quali ~ te

quali ~ fe

monthl ~ c

educle ~ l

workho ~ s

age

equity ~ v

wealth

etnicity

travel ~ d

marita ~ a

noisepollu

1

             

qualityinter

−0.1581

1

            

qualitysew ~ e

−0.1535

0.7013

1

           

qualitywaste

−0.1317

0.7384

0.8021

1

          

qualitylife

−0.2146

0.8171

0.7466

0.7614

1

         

monthlyinc

0.0599

−0.3002

−0.2706

−0.2804

−0.3016

1

        

educlevel

0.0205

−0.2703

−0.2328

−0.2549

−0.2658

0.6042

1

       

workhours

0.2314

−0.0747

−0.1388

−0.1317

−0.0998

0.4671

0.1949

1

      

age

−0.1694

0.159

0.1436

0.1414

0.1504

−0.0362

−0.301

−0.2795

1

     

equityinv

0

0.0539

0.032

0.0449

0.0327

0.1019

0.1459

−0.0131

−0.0195

1

    

wealth

−0.1724

−0.2602

−0.1434

−0.1799

−0.2135

0.5025

0.3742

0.0816

0.1438

0.1701

1

   

etnicity

0.0621

0.0007

0.005

−0.0154

−0.018

−0.1117

−0.0485

−0.0949

−0.0203

0.0106

−0.1116

1

  

travelabroad

−0.0635

0.016

0.0508

0.0379

0.0368

0.1836

0.2323

−0.1189

0.167

0.1434

0.3526

0.0544

1

 

maritalsta

0.0424

−0.0644

−0.069

−0.0754

−0.076

0.216

0.0376

0.2337

0.1473

0.0413

0.2046

−0.0294

0.0553

1

sleephours

−0.013

0.3025

0.2272

0.2465

0.3105

−0.2769

−0.1375

−0.125

0.122

−0.0741

−0.1725

0.0449

−0.0502

−0.1193

oustloan

0.0894

−0.152

−0.1108

−0.1174

−0.1336

0.2235

0.1771

0.1083

−0.0522

0.0651

0.1094

0.0106

0.0726

0.0862

creditcard ~ m

0.1613

−0.1696

−0.1147

−0.1193

−0.1967

0.4005

0.2708

0.153

−0.0639

0.1639

0.2409

−0.0198

0.2819

0.0481

pubprivsect

0.0508

−0.1002

−0.0716

−0.0956

−0.1001

0.1835

0.0932

0.232

−0.1023

0.0228

0.0754

0.0319

−0.0516

0.0899

|

sleeph ~ s

oustloan

credit ~ m

pubpri ~ t

          

sleephours

1

             

oustloan

−0.1459

1

            

creditcard ~ m

−0.2289

0.2134

1

           

pubprivsect

−0.0008

0.0627

0.0565

1

          

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Ramlall, I. (2017). Determinants of House Prices in Mauritius: A Hedonic Price Model à la Quantile Bootstrapped Approach. In: Economics and Finance in Mauritius. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-39435-0_15

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  • DOI: https://doi.org/10.1007/978-3-319-39435-0_15

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-39434-3

  • Online ISBN: 978-3-319-39435-0

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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