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

Main Article Content

Ho-Wen Yang
Hsien-Chi Hsieh


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.

Multi-family residential, hedonic price model, causal steps, bootstrapping, mediation

Article Details

How to Cite
Yang, H.-W., & Hsieh, H.-C. (2020). The Role of Total Number of Floors under Age Influencing Residential Price Utilizing the Mediation Analysis. South Asian Journal of Social Studies and Economics, 7(2), 1-9.
Original Research Article


Lin VCC, Yung CS, Chang CO. Housing Price Index in Taipei. Journal of Housing Studies. 1996;4:1-30. Chinese.

Lee YH. A study on the Taipei housing prices models. Doctoral Thesis of Department of Management Sciences, Tamkang University, Taiwan; 1999.


Tsai YC. A study on the factors which affect the real estate values: Pei-tuo, Shi-Tuo, Nan-tuo, Central, and East District in the Taichung City. Master's Thesis of Department of Finance, Chaoyang University of Technology, Taiwan; 2009.


Lin YY. Estimation of the utility ratio of residential building floors--also on the influence of housing age on floor-to-floor Utility Ratio. Master's Thesis of Real Estate and Urban-Rural Research Institute, Taipei University, Taiwan; 2010. Chinese.

Liang JH. Impact of age on capitalization rate. Journal of Taiwan Land Research. 2015;18(1):83-113. Chinese.

Lin TC, Evans AW. The relationship between the price of land and size of plot when plots are small. Land Economics. 2000;76(3):386-394.

Chang SF. A Study of the Different Prices for Housing Floors. Master's Thesis of Department of Land Economics, Chengchi University, Taiwan; 1994.

Chiang YH. Research on establishing a three-dimensional land price evaluation system. Master's Thesis of Department of Land Economics, Chengchi University, Taiwan; 2000. Chinese.

Liang JH. Reversion on real property depreciation. Journal of Housing Studies. 2012;21(2):71-90. Chinese.

Baron RM, Kenny DA. The moderator-mediator variable distinction in social psychological research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology. 1986;51(6):1173–1182.

Hayes AF, Preacher KJ. Statistical mediation analysis with a multicategorical independent variable. British Journal of Mathematical and Statistical Psychology. 2014;67(3):451–470.

Rosen S. Hedonic prices and implicit markets: product differentiation in pure competition. Journal of Political Economy. 1974;82:35-55.

Tong ZJ. Multi-level analysis of housing characteristic price model. Master's Thesis of Real Estate Management Department of National Pingtung Institute of Commerce and Technology, National Pingtung University of Science and Technology, Pingtung, Taiwan; 2008. Chinese.

Newsom J. Testing Mediation with Regression Analysis. USP 654 Data Analysis II; 2015.


Nurlida I, Faridah H, Nooraini MS, Norzaidi MD. Determining mediating effect of information satisfaction on International Students’ College Choice: Empirical Evidence in Malaysia’s University. International Journal of Scientific Research in Education. 2010;3:51-63.

Katos AV. The impact of information and communication technologies on national competitiveness: A Test of a Mediating Model in the European Union Countries Context. Journal of Information Technology Impact. 2009;9:115-124.

Hayes AF. Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium. Communication Monographs. 2009;76(4):408–420.

Hayes AF. Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Press. 2013.

Rucker DD, Preacher KJ, Tormala ZL, Petty RE. Mediation analysis in social psychology: Current practices and new recommendations. Social and Personality Psychology Compass. 2011;5(6):359–371.

MacKinnon DP, Lockwood CM, Williams J. Confidence Limits for the Indirect Effect: Distribution of the Product and Resampling Methods. Multivariate Behavioral Research. 2004;39(1):99–128.

MacKinnon DP, Lockwood CM, Hoffman JM, West SG, Sheets V. A comparison of methods to test mediation and other intervening variable effects. Psychological Methods. 2002;7(1):83–104.