Abstract:

This study aims to research the factors that determine public houses prices. The hedonic price method, which is based on the assumption that house prices are determined by structural, locational, and neighbourhood attributes, was utilised in this research. In the models that examine the factors, the cross-sectional data of the public houses owned by the treasury were analysed, which were sold through an auction between December 2019 and October 2020 in the Çankaya District of Ankara Province. Estimates were made using the least-squares method. Independent variables were determined by the stepwise regression method. According to the results, the increase in the area of the parcel where the house is located, the increase in the size of the house, the location of the house on the mezzanine, the location of the building where the house is located at the intersection of the street(s) and/or avenue(s), the increase in age of the house, the presence of a metro stop 500 meters from the house, the presence of a car park, the increase in the number of parks in the neighbourhood where the house is located, the increase in the floor of the house, the location of the house in Bahçelievler, Emek, Yukarı Bahçelievler, Söğütözü, Konutkent, Birlik, 100. Yıl, Bayraktar, Maltepe, Harbiye, Yücetepe, Esatoğlu and Fakülteler affect the housing prices positively. The house is located on the basement or ground floor; the increase in the total number of floors in the building, the increase in distance of the house to the Kızılay city centre, shopping centre, and the park, the house is located on the street, the location of the house in Güvenevler, Keklikpınarı, Aydınlar, Şehit Cevdet Özdemir, and Aşağı Öveçler affect the housing prices negatively. The originality of this study is that it is the first hedonic price model application on public housing, and real sales prices are used. The findings are important in three aspects; First, a fairly homogeneous data set was used for the houses with similar characteristics, all within the borders of the same district. Second, the demand of a certain socioeconomic group is examined. Third, there are empirical findings that some purchasing facilities, such as priority right of purchase, regulated by law in favour of a certain group, may adversely affect the competitive conditions in auctions.

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