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Question 2:
Using the attached data of flat prices in Hong Kong, develop an estimated explanatory model of prices for individual flats using regression analysis.





Source: Census and Statistics Department, Hong Kong SAR







Content Page





Cover Page 1

Content Page 2

Executive Overview 3

Introduction 3

Methodology 4

Regression Analysis 6

Limitations 12

Conclusion 12

Appendices 12

Reference 21
















Executive Overview

A multiple regression model is developed to explore the effects of various attributes, such as location, transportation, nearby facilities, on the price structure of private condominiums in Hong Kong. The regression results of housing attributes obtained from the Multiple Regression Analysis indicate that the valuation of a property is sensitive lo changes in housing traits. Home buyers are rational and are willing (unwilling) to pay for desirable (undesirable) housing attributes and that the valuation of a property is market-driven in Hong Kong.

Introduction

Hong Kong is located on China's south coast, 60 km east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the city of Shenzhen in Guangdong Province to the north over the Sham Chun River. The territory consists primarily of Hong Kong Island, Lantau Island, Kowloon Peninsula and the New Territories as well as some 260 other islands.

Much of Hong Kong remains undeveloped as the terrain is mostly hilly to mountainous with steep slopes. Of...