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A Hybrid Property Pricing Model: The Case of Apartment Residents in Jakarta Indonesia

Author

Listed:
  • Eris Sudariswan
  • Ernie Tisnawati Sule
  • Sucherly
  • Sulaeman Rahman

Abstract

Purpose: This research initiates a property pricing model that involves various perspectives and consumer considerations in selecting properties, including aspects of sales comparison, investment, hedonic life style, brand equity, and digital life style. Design/Methodology/Approach: The study investigates 222 residents of middle class apartments in Jabotadebek (Great Jakarta). The study employs Structural Equation Modelling (SEM) to test the research hypotheses. Findings: The research found that the price of apartments in the region is strongly influenced by a combination of multi aspects of sales comparison, investment, hedonic life style, brand equity, and digital life style. Practical Implications: The research has implications for investment shows the weakest contribution to the apartment price. Originality/Value: This study found that the price of apartments in the region is strongly influenced by a combination of multi aspects of sales comparison, investment, hedonic life style, brand equity, and digital life style.

Suggested Citation

  • Eris Sudariswan & Ernie Tisnawati Sule & Sucherly & Sulaeman Rahman, 2020. "A Hybrid Property Pricing Model: The Case of Apartment Residents in Jakarta Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 94-106.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:94-106
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    References listed on IDEAS

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    1. John M. Clapp & Carmelo Giaccotto, 1999. "Revisions in Repeat‐Sales Price Indexes: Here Today, Gone Tomorrow?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 27(1), pages 79-104, March.
    2. Sheharyar Bokhari & David Geltner, 2011. "Loss Aversion and Anchoring in Commercial Real Estate Pricing: Empirical Evidence and Price Index Implications," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(4), pages 635-670, December.
    3. Pablo Kurlat & Johannes Stroebel, 2015. "Testing for Information Asymmetries in Real Estate Markets," The Review of Financial Studies, Society for Financial Studies, vol. 28(8), pages 2429-2461.
    4. Denis Babusiaux & Axel Pierru, 2009. "Investment project valuation : A new equity perspective," Working Papers hal-02469464, HAL.
    5. Fisher, Jeffrey D & Geltner, David M & Webb, R Brian, 1994. "Value Indices of Commercial Real Estate: A Comparison of Index Construction Methods," The Journal of Real Estate Finance and Economics, Springer, vol. 9(2), pages 137-164, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Property pricing model; Structural Equation Modelling (SEM); brand equity.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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