Price Determinants of Flats Purchased for the First Time in Prague
|Autor:||Bc. Daniel Pelnář|
|Rok:||2018 - letní|
|Vedoucí:|| doc. Ing. Tomáš Cahlík CSc.
|Typ práce:|| Bakalářská
|Abstrakt:||Being able to correctly estimate the true intrinsic value of a flat is important for
various economic agents. This paper is concerned with the price determinants of first-timepurchased
flats in Prague. It is mostly about the hedonic pricing model and its applications
using data from Vivus which is one of the larger flat developers operating in Prague. Ordinary
least squares was the estimation method of choice in this study. The main results are as
follows. The residual analysis showed no extremely overvalued or undervalued flats based on
our chosen models. Moreover, the estimated increase in prices of average sized flats in
Uhříněves was 36.76% from 2017 to 2019. This is a much larger magnitude if compared with
the period of the financial crisis where an average sized flat in Na Vyhlídce increased in its
price by 12.83% from 2007 to 2009. It is interesting to see that even during a recession, the
prices of Prague flats were raising.