Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach

Rita Yi Man Li, Ka Yi Cheng and Muhammad Shoaib (2018) Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach, Sustainability 2018, 10(4), 1298, DOI/10.3390/su10041298

17 Pages Posted: 2 Jun 2018

See all articles by Rita Yi Man Li

Rita Yi Man Li

Hong Kong Shue Yan University

Ka Yi Cheng

Hong Kong Shue Yan University - Department of Economics and Finance

Muhammad Shoaib

National University of Science and Technology - Department of Construction Engineering and Management

Date Written: April 23, 2018

Abstract

Various researchers have explored the adverse effects of walled buildings on human health. However, few of them have examined the relationship between walled buildings and private housing estates in Hong Kong. This study endeavors to fill the research gap by exploring the connections among walled-building effects, housing features, macroeconomic factors, and housing prices in private housing estates. Specifically, it reveals the relationship between walled buildings and housing prices. Eight privately owned housing estates are selected with a total of 11,365 observations. Results are analyzed to study the factors that affect the housing price. Firstly, unit root tests are carried out to evaluate if the time series variables follow the unit root process. Secondly, the relationship between walled buildings and housing price is examined by conducting an artificial neural network. We assumed that the housing price reduces due to walled-building effects, given that previous literature showed that heat island effect, and blockage of natural light and views, are common in walled-building districts. Moreover, we assume that housing price can also be affected by macroeconomic factors and housing features, and these effects vary among private housing estates. We also study these impacts by using the two models. Recommendations and possible solutions are suggested at the end of the research paper.

Suggested Citation

Li, Rita Yi Man and Cheng, Ka Yi and Shoaib, Muhammad, Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach (April 23, 2018). Rita Yi Man Li, Ka Yi Cheng and Muhammad Shoaib (2018) Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach, Sustainability 2018, 10(4), 1298, DOI/10.3390/su10041298 . Available at SSRN: https://ssrn.com/abstract=3181184

Rita Yi Man Li (Contact Author)

Hong Kong Shue Yan University ( email )

10 Wai Tsui Crescent
Braemar Hill Road
North Point
Hong Kong

Ka Yi Cheng

Hong Kong Shue Yan University - Department of Economics and Finance ( email )

Wai Tsui Crescent
Braemar Hill Road
North Point
Hong Kong

Muhammad Shoaib

National University of Science and Technology - Department of Construction Engineering and Management ( email )

Islamabad
Pakistan

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