1# RECORD 957b7ae41dcaefe03a6f1c97347d060b63c91fe22# TITLE: Stuctural, Spatial and Other Attibutes of House Price: The Case of Bangladesh3# YEAR: 2012.0 VENUE: Journal of Bangladesh Institute of Planners DOI: 10.3329/jbip.v5i1.769594# AUTHORS: T. Bashar5# PAGES: 12 CANDIDATE TABLE PAGES (1-based): []6# ABSTRACT: This paper examines the significance of structural and spatial characterstics of house contributing to the property value. Longitudinal data on property value over the last ten years and cross sectional data on house rent have been analysed using Hedonic Regressions Function to derive a house price index for the current housing market in Bangladesh. The trend of house price is increasing more rapidly with the demand driven housing market in Bangladesh. Real estate attracts a great deal of speculative investment, but there is no indication of the relative importance of various factors in this process. This paper hopes to make an initial dent into this problem.7Journal of Bangladesh Institute of Planners, Vol. 5, Dec 2012, pp. 13-248910===== PAGE 1 (score 4, numeric-paren 0, table-words 0, var-words 4) =====1112Journal of Bangladesh Institute of Planners 13ISSN 2075-9363 14Vol. 5, December 2012, pp. 13-24, Bangladesh Institute of Planners 15Stuctural, Spatial and Other Attibutes of House Price: 16The Case of Bangladesh 17Toriqul Bashar* 18Abstract 19This paper examines the significance of structural and spatial characterstics of house contributing 20to the property value. Longitudinal data on property value over the last ten years and cross-21sectional data on house rent have been analysed using Hedonic Regressions Function to derive a 22house price index for the current housing market in Bangladesh. The trend of house price is 23increasing more rapidly with the demand driven housing market in Bangladesh. Real estate attracts 24a great deal of speculative investment, but there is no indication of the relative importance of 25various factors in this process. This paper hopes to make an initial dent into this problem. 26Introduction 27Housing market of Bangladesh is booming over the last few decades to feed the growing demand 28by bourgeoisies, particularly, in the urban areas. Though the market is primarily dominated by the 29private realtors, the government housing authorities also keep impetus in this process. The 30increasing migration toward urban areas for availing better livelihood facilities coupled with the 31scarcity of urban land have made the housing demand skyrocketing. As such, houses are now 32being split into flats to accomodate the influx of city dwellers who having less purchasing power. 33Still the supply is far behind the level to meet the current demand which is causing less control 34over the exponential increase of market price. However, various physical and non-physical 35attributes determine the house price and make difference between in-house prices across the city. 36All changes across the area are not completely explicit, as such, to estimate the values of that 37changes always be complex since a number of factors and their multiple effects contribute to these 38changes. Many approaches and methods have been employed by far to measure the costs for 39marginal changes. Thus, in-house and outdoor factors need to be looked into carefully. A good 40house price index allows buyers and sellers to estimate the current value of houses. 41A number of seminal works on House Price Dynamics have been written by a number of authors. 42Among them (Cho, 1996; Owen & Jeremy, 1999; Poterba, Weil, & Shiller, 1991; Taylor, 1992) 43are few noticeable, more specifically, Topel & Rosen (1998) on “Housing Investment”, Case & 44Shiller (1990) on “Forecasting Prices and Excess Returns in the Housing Market”, Goodman & 45Ittner (1992) on “The Accuracy of Home Owners' Estimates of House Value”, etc. But all are 46based on data dealt with the housing market of developed countries. But, the housing market 47dynamics in the context of Bangladesh have never been reported or analysed anywhere. This paper 48has analysed the house price using Hedonic Price Function (HPF) based on data extracted from 49Dhaka and Brahmanbaria city, and hopes to provide an initial understanding of the housing market 50in Bangladesh. In the following section, the data sources along with variables used while 51collecting data have been discussed. The section also includes details of methodology that have 52been followed in the article. The section is followed by the theoretical aspect of Hedonic Price 53Function. It describes pros and cons of methodical approaches used while estimating house price 54and sets an equation to reach at the results. The next section is the empirical results, based on data 55collected from various sources for this articles. Finally, conclusion has been drawn out. 56 57* Department of Economics, Monash University (Caulfield Campus), Melbourne, Australia 58Email: basher.bashar@monash.edu; shohag1296@yahoo.com 59