Utilizing Hedonic Price Method in Valuing Residential Properties Case Study: Baghe Saba Neighborhood in District 7 of Tehran

At the present, along with the increase of public awareness, the city planners and policy makers, for the realization of public interests, try to produce & fund plans that cover society’s thoughts & interests. However, what specifically is important in the field of housing and planning, is how to link supplier & consumer in the housing market and planning and the evaluation process. Since house characteristics are of non-market ones, using methods other than analyzing supply & demand, are necessary. This study , puts the emphasis on hedonic pricing method which has become popular in housing studies in the recent decades. This method tries to study the effective factors on valuation of apartment residential units and finally build its hedonic model in the district. Here the selling price of 80 apartment units within a time period of one year (2010-2011) were randomly selected and their attributes were studied in Baghe Saba neighborhood in district 7 of Tehran. Analysis were made by using two forms of linear and semi-log regression in spss software environment. Results show that semi-log regression is more useful in the analysis for this context. Also, physical and structural specifications of the house are more effective in house valuation & within the 95% confidence interval, variables such as unit area, elevator, parking and the unit’s age are more significant although the unit’s age variable having a negative effect on the building value. In addition, on the 90% confidence interval, the distance from office land use is also significant( by negative impact) .