CLIENTS' PREFERENCE FOR LOW-COST RESIDENTIAL PROPERTIES: A CONJOINT ANALYSIS
Abstract
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
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DOI: http://dx.doi.org/10.46827/ejmms.v7i4.1387
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