This paper tests whether out-of-sample hedonic value predictions can be improved when a large urban housing market is divided into submarkets.

This paper presents a hedonic housing price model for the city of Glasgow in Scotland. The major innovation of the research is the use of hierarchical clustering techniques to identify property submarkets defined by a combination of property types, locations and socioeconomic characteristics of...

Previous work on hedonic price functions tends to have focused on one of a number of specification and estimation issues; namely, market segmentation, choice of functional form, multicollinearity or spatial autocorrelation. The purpose of this paper is to bring together these various strands to...