Conventional Approaches and Mechanism to housing market Analysis

Abstract

Housing market mechanism and conventional approaches to housing market analysis depends on different scenarios. Therefore, this paper review previous literature on housing market analysis in order to establish factors that determines housing prices in different scenarios. Hence, a total of 60 published academic journals, conference papers, thesis and others obtained through secondary sources were reviewed. It was found out that structural attributes, environmental/neighbourhood factors, urban form, location, socioeconomic characteristics, national economic performance (micro and macro) and policy were major determinants of housing prices. It was also found out that little has been done on urban form in relation to housing price determinant. It therefore concluded that hedonic model was the most used conventional approach to housing market analysis, particularly regarding structural attributes and environmental/neighbourhood attributes, while Artificial Neural Network is given less preference. These form basis for further researches on housing market.