John Vianne B. Murcia, Loweeh M. Matillano


The purpose of this study was to determine the clients’ preference for residential property in Digos City in the southern part of the Philippines. Through the examination of the five attributes (location, equity, terms of payment, floor area, and the price) and their corresponding levels using conjoint analysis, the order of relative importance of each attribute was determined together with the utility estimates to determine the client’s preference for a low-cost residential property. Twenty plancards containing hypothetical combinations were generated via an orthogonal array and were administered to 400 medium-income individuals. Results revealed that price is the most important attribute, followed by location, terms of payment, and floor area, while equity was found the least important attribute. It can also be inferred that the overall sample preferred low-cost housing near the school, outright or staggered payment for the equity, payable in 20 years with a floor area of 45 sqm (single-detached) in a 100 sqm lot and with a price of Php 500,000. The most preferred low-cost residential property is a combination of the following attribute levels: near the school of children, staggered payment for equity, with terms of payment payable in 10 years, with a floor area of 45 sqm (single-detached) in a 100 sqm lot and can be bought for Php 500,000.


JEL: R30; R31


Article visualizations:

Hit counter


market study, low-cost housing, residential property, client preference, conjoint analysis, Philippines

Full Text:



Agarwal, S., He, J., Liu, H., Png, I. P., Sing, T. F., & Wong, W. K. (2016). Superstition, conspicuous spending, and housing markets: evidence from Singapore. Available at SSRN 2416832.

Allen, F., Barth, J. R., & Yago, G. (2014). Financial innovations and the stability of the housing market. National Institute Economic Review, 230(1), 16-33.

Almaden, C. R. (2014). Housing affordability challenges: The case of the median income households in Cagayan De Oro City Philippines. International Journal of Humanities and Social Science, 4(10), 1.

Ayoola, A., & Amole, D. (2014). The value of housing among the poor in Ilesa, Osun State Nigeria. Architecture Research, 4(1A), 45-54.

Banks, J., Blundell, R., Oldfield, Z., & Smith, J. P. (2015). House price volatility and the housing ladder (No. w21255). National Bureau of Economic Research.

Bayer, P., McMillan, R., Murphy, A., & Timmins, C. (2016). A dynamic model of demand for houses and neighborhoods. Econometrica, 84(3), 893-942.

Ben-Akiva, M. E., Lerman, S. R., & Lerman, S. R. (1985). Discrete choice analysis: theory and application to travel demand (Vol. 9). MIT Press.

Calixijan, L., & Murcia, J. V. (2015). Market Analysis of Condominium Property Buyers in Davao City, Philippines: A Conjoint Approach. Available at SSRN 2779062.

Coley, R. L., Kull, M., Leventhal, T., & Lynch, A. D. (2014). Profiles of housing and neighborhood contexts among low-income families: Links with children's well-being. Cityscape, 16(1), 37-60.

Collen, H., & Hoekstra, J. (2001). Values as determinants of preferences for housing attributes. Journal of Housing and the Built Environment, 16(3), 285-306.

Domencich, T. A., & McFadden, D. (1975). Urban travel demand - a behavioral analysis (No. Monograph).

Du, L. J., Dewally, M., Shao, Y. Y., & Singer, D. (2015). Homeownership and Income Inequality. Northeastern Association of Business, Economics, and Technology, 98.

Freeman, A., & Harden, J. J. (2015). Affordable homeownership: the incidence and effect of down payment assistance. Housing Policy Debate, 25(2), 308-319.

Frenkel, A., Bendit, E., & Kaplan, S. (2013). Residential location choice of knowledge-workers: The role of amenities, workplace, and lifestyle. Cities, 35, 33-41.

Gan, X., Zuo, J., Ye, K., Li, D., Chang, R., & Zillante, G. (2016). Are migrant workers satisfied with public rental housing? A study in Chongqing, China. Habitat International, 56, 96- 102.

Gawronski, B. (2013). What should we expect from a dual-process theory of preference construction in choice? Journal of Consumer Psychology, 23(4), 556-560.

Green, P. E., & Srinivasan, V. (1978). Conjoint analysis in consumer research: issues and outlook. Journal of Consumer Research, 5(2), 103-123.

Hair, J. F., Anderson, R. E., Tatham, L. R., & Black, W. C. (2006). Multivariate Data Analysis (5th ed.). New Jersey: Prentice-Hall PTR.

Hamzah, H., & Murphy, L. (2014). The role of institutions in sustaining mandatory low-income housing. Pacific Rim Property Research Journal, 20(2), 129-144.

Huang, Z., & Du, X. (2015). Assessment and determinants of residential satisfaction with public housing in Hangzhou, China. Habitat International, 47, 218-230.

Jansen, S. J. (2013). Why is housing always satisfactory? A study into the impact of preference and experience on housing appreciation. Social Indicators Research, 113(3), 785-805.

Jansen, S. J. T. (2014). The impact of the have–want discrepancy on residential satisfaction. Journal of Environmental Psychology, 40, 26-38.

Jensen, T. L., Leth-Petersen, S., & Nanda, R. (2015). Home equity finance and entrepreneurial performance: Evidence from a mortgage reform. Harvard Business School.

Łaszek, J. (2013). Housing in consumer’s theory,[w:] Report on the situation in the Polish residential and commercial real estate market in 2012. NBP, Warszawa.

Newell, G., Lee, C. L., & Kupke, V. (2015). The opportunity of residential property investment vehicles in enhancing affordable rental housing supply.

Li, J. (2015). Recent trends on housing affordability research: where are we up to?. Available at SSRN 2555439.

Mackmin, D. (2013). Valuation and sale of residential property (3rd Ed.). Estates Gazette.

McConnell, E. D. (2013). Who has housing affordability problems? Disparities in housing cost burden by race, nativity, and legal status in Los Angeles. Race and Social Problems, 5(3), 173-190.

Moghimi, V., & Jusan, M. B. M. (2015). Priority of structural housing attribute preferences: identifying customer perception. International Journal of Housing Markets and Analysis, 8(1), 36-52.

Mulliner, E., Smallbone, K., & Maliene, V. (2013). An assessment of sustainable housing affordability using a multiple criteria decision-making method. Omega, 41(2), 270-279.

Murphy, A. (2013). A dynamic model of housing supply. Available at SSRN, 2200459.

Nguyen, A. T., & Reiter, S. (2014). Passive designs and strategies for low-cost housing using simulation-based optimization and different thermal comfort criteria. Journal of Building Performance Simulation, 7(1), 68-81.

Okesoto, J. O., Oke, G. O., & Olayiwola, K. O. (2014). Residential location preference of Lagos Central Business District working population. American Journal of Social Issues and Humanities, 4(1), 45-55.

Olotuah, A. O. (2015). Accessibility of low-income earners to public housing in Ado-Ekiti, Nigeria. Civil and Environmental Research, 7(7), 1-6.

Opoko, A. P., Ibem, E. O., & Adeyemi, E. A. (2015). Housing aspiration in an informal urban settlement: A case study. Urbaniizziv, 26(2), 117-131.

Philippine Statistics Authority (2017). July 2017 Quarterly Economic Indices (QEI) of the Philippines. Retrieved September 2, 2017, from

Raghavarao, D., Wiley, J. B., & Chitturi, P. (2010). Choice-based conjoint analysis: models and designs. Chapman and Hall/CRC.

Razak, M. I., Ibrahim, R., Abdullah, N., Osman, I., & Alias, Z. (2013). Purchasing intention towards real estate development in Setia Alam, Shah Alam: Evidence from Malaysia. International Journal of Business, Humanities, and Technology, 3(6), 66-75.

Rohe, W. M., Van Zandt, S., & McCarthy, G. (2013). The social benefits and costs of homeownership: A critical assessment of the research. The Affordable Housing Reader, 40, 00-01.

Roidoung, P. (2013). Factors of housing decisions for low and middle-income households in the greater Bangkok area. The Empirical Econometrics and Quantitative Economics Letters, 2(3), 13-26.

Samad, D., Zainon, N., Rahim, F. A. M., & Lou, E. (2017). Malaysian affordability housing policies revisited. Open House International, 42(1), 44-51.

Samuelson, P. A. (1938). A note on the pure theory of consumer's behaviour. Economica, 5(17), 61-71.

Sayadi, S., Roa, M. C. G., & Requena, J. C. (2005). Ranking versus scale rating in conjoint analysis: Evaluating landscapes in mountainous regions in southeastern Spain. Ecological Economics, 55(4), 539-550.

Sean, S. L., & Hong, T. T. (2014). Factors affecting the purchase decision of investors in the residential property market in Malaysia. Journal of Surveying, Construction and Property, 5(2), 1-13.

Schularick, M. (2014). No Price Like Home: Global House Prices, 1870-2012. Globalization and Monetary Policy Institute Working Paper (208).

Sterk, V. (2015). Home equity, mobility, and macroeconomic fluctuations. Journal of Monetary Economics, 74, 16-32.

Sun, W., Zheng, S., Geltner, D. M., & Wang, R. (2017). The housing market effects of local home purchase restrictions: Evidence from Beijing. The Journal of Real Estate Finance and Economics, 55(3), 288-312.

Tan, T. H. (2012). Meeting first-time buyers’ housing needs and preferences in greater Kuala Lumpur. Cities, 29(6), 389-396.

Torres, I., Greene, M., &Ortúzar, J. D. D. (2013). Valuation of housing and neighbourhood attributes for city centre location: A case study in Santiago. Habitat International, 39, 62-74.

Wu, W., Zhang, W., & Dong, G. (2013). Determinant of residential location choice in a transitional housing market: Evidence based on micro survey from Beijing. Habitat International, 39, 16-24.

Yang, Z., Yi, C., Zhang, W., & Zhang, C. (2014). Affordability of housing and accessibility of public services: evaluation of housing programs in Beijing. Journal of Housing and the Built Environment, 29(3), 521-540.

Zinas, B. Z., & Jusan, M. M. (2017). Choice behaviour of housing attributes: Theory and measurement. Asian Journal of Environment-Behaviour Studies, 2(2), 23-37.

Źróbek, S., Trojanek, M., Źróbek-Sokolnik, A., & Trojanek, R. (2015). The influence of environmental factors on property buyers' choice of residential location in Poland. Journal of International Studies, 7(3), 163-173.



  • There are currently no refbacks.

Copyright (c) 2022 John Vianne B. Murcia, Loweeh M. Matillano

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.