Level and Determinants of Housing Prices in Slovenia at Micro Level

The hedonic price function is estimated for housing in Slovenia. The prices of housing in Slovenia vary by regions. Slovenian regions analyzed in the article are, according to the prices of housing, classified into three groups. The most expensive groups are Ljubljana (the capital), its suburbs and Primorska, the middle price group includes Gorenjska, whereas the least expensive housing can be found in the North- Eastern part of Slovenia. The equality test, a post-hoc analysis and the analysis of contrasts confirm these findings. The regression hedonic price analysis shows different behaviour among the groups of regional explanatory variables (size, age and floor of housing). In regions with the most expensive housing the size of housing has a significant impact on the price per square meter. The pattern is less obvious in middle and lower price range regions. The age and floor of housing have significant impacts on price in the most and in the least expensive housing regions, whereas the influence is less strong in the middle price region. Some crucial determinants of housing prices at micro level reflecting the inhomogeneous housing characteristic are therefore location, size, age and the floor.