The Role of Total Number of Floors under Age Influencing Residential Price Utilizing the Mediation Analysis

Abstract

We examine here how does age and total number of floors affect residential prices in Taichung City Taiwan. In recent years, with the increase in land prices and the improvement of construction technology, number of floors in multi-family residential towers has also increased in Taiwan. There are many factors that affect the transaction price of multi-family residential towers. The research object of this study is 2,500 transaction data of 22 multi-families residential towers in the most densely populated area near Zhongke Shopping Plaza in Xitun District, Taichung City April 2012 to March 2019. First, this study uses the hedonic pricing model explore the significance of factors that affect the transaction price of multi-family residential towers with residential prices as the dependent variables, number of floors, age, land transfer area, building transfer area, story as independent variables. Then this study uses causal steps and bootstrapping to check the intermediary effect of number of floors between age and residential price. The statistical results found that number of floors, age, land transfer area, and building transfer area all significantly affect residential price. This study found that age affects residential price through number of floor height that represent number of floors playing the role of full mediation between age and residential price.