The Sigficance of spatial factors in influencing the price of heritage properties in George Town, Penang.
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Date
2010
Authors
Lam Tatt, Soon
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Abstract
The aim of this research is to determine the significance of selected spatial factors
and the influence of these spatial factors on heritage property prices in George Town
1. Spatial factors related to location, neighbourhood ·and local amenities such as
transportation points, highway, shopping centre and school are tested in this research.
Hedonic regression analysis is used to study the relationship between spatial factors
and heritage property price in George Town 1. A total of 231 heritage property
transaction records from year 1998 to 2004 are used in this analysis. The empirical
result shows that spatial factor has significant influence on heritage property prices.
'Ferry route', 'shopping centre' and 'primary and secondary school' are three
significant factors influencing heritage property prices in George Town 1. To further
verify the significance of the above spatial factors, a spatial autocorrelation analysis
is used for the second test. The analysis result indicates that property prices in
George Town 1 are positive spatial autocorrelated. The positive spatial
autocorrelated transaction prices in George Town reflect that property prices in
George Town tend to depend on its neighbour. A geo-statistical method called
Kriging is then used to verify the dependency of heritage property prices on its
neighbours. A comparison between the predicted prices obtained from the Kriging
map with actual transaction prices found that the predicted prices are reasonably
close to the actual prices. As the Kriging method uses neighbouring properties prices
to predict prices, the findings indicate that spatial factors especially neighbourhood
has an influence on heritage property prices in George Town.
Description
Keywords
Spatial factors , Heritage properties