A Review of Recent Empirical Studies on Property Price Gradients

Authors: C. Y. Yiu and C. S. Tam

Start Page: 307
End Page:322
Volume: 12
Issue Number: 3
Year: 2004
Publication: Journal of Real Estate Literature

Abstract: This paper reviews the empirical studies that have been conducted on property price
gradients. There are basically two different methodologies of estimation and three
different assumptions on the spatial structure of an urban area. The two methods are:
(1) the hedonic pricing model and (2) the repeat-sales model; and the three
assumptions are: (1) the monocentric assumption; (2) the non-monocentric/polycentric
assumption; and (3) no a priori assumption about the urban spatial structure. The
methodologies and the findings of these previous studies are compared and analyzed
to clarify the path for further studies.