Barriers to applying the hedonic pricing model in property markets and the challenges in the Philippine context: a systematic literature review

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Divine Krizza P. Cruz

Committee Member

U-Primo E. Rodriguez, Gideon P. Carnaje, Maria Angeles O. Catelo

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Abstract

This systematic literature review explores the barriers to applying the Hedonic Pricing Model in property markets, focusing on the challenges specific to the Philippine context. The real estate market, a key sector influencing economic growth and social welfare, faces significant issues in property valuation due to a lack of transparency and reliance on speculative behaviors. Despite the extensive application of the HPM in both developing and developed markets, its use in the Philippines remains underexplored, with few studies addressing the model's theoretical, methodological, and empirical challenges. This review synthesizes international research on HPM, highlighting the factors influencing property prices, such as structural, locational, and neighborhood attributes, and identifies existing strategies to address the barriers hindering its broader adoption. Key challenges include data issues, market segmentation, and the need for enhanced transparency. The review also outlines recommendations for facilitating HPM application in the Philippines, including the use of alternative data sources and improvements within the government sector. By addressing these barriers, the study aims to facilitate the use of HPM in Philippine property valuation, contributing to more accurate property assessments, informed policy decisions, and a more transparent and efficient market. The findings of this review can offer valuable insights for both academic research and policymaking, with implications for the future development of the Philippine real estate sector.

Language

English

LC Subject

Hedonic pricing, Real property, Economic development

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 C34

Notes

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Document Type

Thesis

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