Hedonic Pricing in the Modern Housing Market of the Novosibirsk Agglomeration

Abstract

The paper is devoted to the search for hedonic markups for residential properties in the Novosibirsk agglomeration in 2020. Method of hedonic regression is being tested in relation to the Russian housing market, based on the experience of similar foreign studies. The object of observation is a typical housing stock, legacy of the Soviet economy and urban planning. The use of hedonic model of pricing for real estate objects is presented in the works of many foreign researchers, but they considered them in relation to local housing markets, which have their own specifics, so their experience is not applicable in Russia. Our obtained results in numerical terms are comparable with similar data of foreign colleagues. This study is methodologically based on the studies’ results of hedonic pricing, obtained by Russian scientists, using materials from the Siberian region. As a matter of fact, these studies were carried out in the early 2000s, and their results related to the early development of the real estate market in Siberia. Hedonic method was applied in the analysis of real estate prices in the Novosibirsk agglomeration in 2020, an attempt was also made to minimize the entire set of factors influence on an object price, focusing on the hedonic markup, such general scientific methods as the system approach as a general methodological principle of the study were used in this work, scientific abstraction, logical analysis, systematization methods, comparative analysis, hedonic regression (Hedonic regression method) was used in the calculations as a kind of hedonic pricing.