The Impact of Administrative Characteristics and Residential Types on Income Capitalization Rates in Taipei, Taiwan

Abstract

This paper examines several factors that impact income capitalization rates, and applies the hierarchical linear model as an analytical method. The empirical results suggest that: (1) the average income capitalization rates in different administrative areas of Taipei vary widely; (2) differences in attributes and types of residential properties have a significant impact on income capitalization rates; (3) the influence coefficients in different administrative areas show significant variation; (4) population density has a significantly negative impact on an income capitalization rate and (5) the proportion of commercial property in a given district has a significantly positive impact on income capitalization rate.