Hedonic pricing
RICS Insight Paper ‘Value of natural capital - the need for chartered surveyors’ published by the Royal Institution of Chartered Surveyors in 2017, describes hedonic pricing as a revealed preference method of valuation that draws on the revealed preferences of stakeholders.
In hedonic pricing: 'property transaction data are analysed to determine the influence of the factor being valued, for example proximity to open space or location in a National Park. This relies on having sufficient data to produce a robust analysis.'
Other revealed preference methods include:
- Travel cost methods.
- Avertive expenditure (or avertive behaviour methods).
- Replacement cost.
- Direct market valuation.
Approaches other than the revealed preference method include:
- Stated preference valuation.
- Value transfer/benefit transfer.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Celebrating architecture's eloquent champions.
Unusual perspectives on 1960s’ thinking.
AI and the challenges to intellectual property
The legal landscape of adopting AI now and in the future.
Worrying landscape for Welsh construction SMEs revealed.
In recent risk factor analysis report completed by CIOB.
Construction Sport survey highlights risks of dehydration
Supporting construction workers to avoid dangers.
Can your business afford to ignore mental well-being?
£70 - 100 billion annually in UK construction sector.
Mental health in the construction industry
World Mental Health Day 10 October.
Construction awards provide relief in wake of ISG collapse
Spike in major infrastructure awards, housing up but short of targets, are ISG collapse impacts yet to come.
Biodiversity net gain with related updates and terms
Only 0.5% of applications subject to BNG in the context significant proposed changes to planning.
As political power has shifted from blue to red
Has planning now moved from brown to green?
The role of construction in tackling the biodiversity crisis
New CIOB Nature of Building digital series available now.
The Nature Towns and Cities initiative
Grants of up to 1 million for local councils and partners.
The continued ISG fall out October updates
Where to look for answers to frequently asked questions.
Building safety remediation programme for Wales
With 2024 October progress updates.
In major support package for small businesses.
Conservation and transformation
Reading Ruskin’s cultural heritage. Book review.