Technology in urban planning spatial hedonic house price model as an information tool
To plan cities well requires careful assessment of the locations of economic activity as well as an examination of mobility patterns. This knowledge can reveal areas in the city where traffic congestion is likely, where new infrastructure (schools, hospitals, etc.) and public transport are needed, as well as the areas that are vulnerable to noise and pollution. Hedonic Price Method (HPM) has traditionally been used to estimate implicit prices- the prices that are indirectly revealed through estimating consumers' willingness to pay for certam non-market characteristics of a good - and demand for housing. HPM can also be used to explore the interrelationship between housing demand and these other important aspects that characterise cities. These economic models can estimate land values associated with different locations, and assess the demand for various amenities and housing submarkets. This information can be utilised in the context of strategic and urban planning in order to understand and map prime locations where sufficient public amenities currently exist as well as the low-value areas where there exist fewer amenities. Quantitative valuation of the kind explored in this chapter is a useful planning research instrument that can be applied in both the strategic plan-making and urban planing processes, particularly given the scarcity of methods assessing demand for locations and benefits of amenities.
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