Journal articles on the topic 'Property price premium'
To see the other types of publications on this topic, follow the link: Property price premium.
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Property price premium.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
JAYANTHA, Wadu Mesthrige, and Jia Ming LAU. "BUYERS’ PROPERTY ASSET PURCHASE DECISIONS: AN EMPIRICAL STUDY ON THE HIGH-END RESIDENTIAL PROPERTY MARKET IN HONG KONG." International Journal of Strategic Property Management 20, no. 1 (April 14, 2016): 1–16. http://dx.doi.org/10.3846/1648715x.2015.1105322.
Full textAbstract:
Demand for luxury housing units from the upper and upper-middle income groups in Hong Kong has been increasing over the last few years. as the market cannot satisfy demand, some prospective buyers have turned their attention to “special” housing units. this research paper attempts to investigate buyers’ preferences for two types of “special” units, namely duplex units and adjoining flats. the study investigates the price premiums paid by the buyers, and examines the effects of these special units on property price. the study employs two hedonic price models: one measuring the buyers’ preference on duplex units and the other one measuring buyers’ preference on adjoining flats. The results show that buyers are willing to pay a larger premium for special residential units: HK$588/ft 2 more for a duplex unit and HK$934/ft 2 more for an adjoining property unit, respectively. furthermore, a relatively larger premium is found for adjoining flats compared to duplex units. This implies that a property unit, purchased as an adjoining flat can add more value to the property price (in terms of $s per sq. ft.) compared with being a duplex unit.
2
Taltavull de La Paz, Paloma, V. Perez-Sanchez, Raul-Tomas Mora-Garcia, and Juan-Carlos Perez-Sanchez. "Green Premium Evidence from Climatic Areas: A Case in Southern Europe, Alicante (Spain)." Sustainability 11, no. 3 (January 28, 2019): 686. http://dx.doi.org/10.3390/su11030686.
Full textAbstract:
The existence of a green premium in house (asking) prices in Alicante province, Spain, are analyzed using circa 9000 property observations. In developing the sample, information from energy efficiency certificates was matched with two other databases. The model tests for green premium by climatic zones using pool Ordinary Least Squares (pool-OLS) and Instrumental Variables (IV) hedonic models, adds new knowledge concerning the existence of green premiums from Southern Europe, explores differences in their estimation by climatic zone, debates the nature of the estimated green parameters, and explains the role of endogeneity in hedonic green premium models. The empirical evidence assesses the sensitivity of asking price to either energy consumption (KWh) or carbon dioxide emissions (CO2) with an apparent premium of 3%, and captures an association with efficiency rating from G to F of 1.8% and from F to E of 1.1%. Significantly, the results relating to price responses show a distinct variation between the coast and the cooler climatic zone of the interior. The paper shows that energy efficiency incentive policies should discriminate by climatic areas, and provides a price reference by which to assess the amount of incentives needed to achieve European Union (EU) objectives.
3
Amidu, Abdul Rasheed Amidu, and Alirat Olayinka Agboola. "International Real Estate Review." International Real Estate Review 12, no. 2 (August 31, 2009): 157–70. http://dx.doi.org/10.53383/100110.
Full textAbstract:
This study examines the determinants of auction premium using data from a first-price sealed bid auction of Federal Government Landed Properties in Nigeria. The results indicate that the number of bidders and location are important determinants of auction price premiums. These findings are consistent with the auction theory. The empirical estimates also suggest that property type as well as bidder characteristics may also influence auction premiums.
4
Shimizu, Chihiro. "Microstructure of asset prices, property income and discount rates in the Tokyo residential market." International Journal of Housing Markets and Analysis 10, no. 4 (August 7, 2017): 552–71. http://dx.doi.org/10.1108/ijhma-12-2016-0082.
Full textAbstract:
Purpose The purpose of this paper is to decompose and measure the microstructure of property investment returns for Tokyo’s residential property markets in as much detail as possible in comparison with office market. Design/methodology/approach Using enterprise value data for property investment trust companies composed of share prices available on capital markets, this study proposed a method of estimating property investment returns corresponding to changes in capital markets, and clarified the distortion in capitalization rate that are formed based on property appraisal prices. Findings The results for residential property showed that as building floor space increased, income and price increased while the discount rate decreased. In particular, a higher return could be obtained from office property than residential property by investing in larger-scale properties. Building age lowered asset price and income for both residential and office property, especially for residential property. Research limitations/implications In Japan, investors believe that investment returns are high for properties close to the city centre, relatively new properties and those with large design or floor space. Therefore, this study first measured how asset prices, income and asset price–income ratios that comprise property investment returns change based on differences in these property characteristics. Second, the reliability/distortion of information that can be observed on the property investment market was measured. Furthermore, there was a significant divergence between discount rates and risk premiums formed by asset or space markets versus capital markets. Practical implications The differences of discount rate and risk premium formed by asset markets versus capital markets indicate that appraisal prices have biases. Thus, when it comes to property investment decisions, it is essential to make active use not just of property investment returns based on appraisal prices formed by asset markets but also information formed by capital markets. Social implications A greater difference was generated in a shrinking market, suggesting that analysing property returns estimated on asset market information alone could lead to erroneous investment decisions. Originality/value This research is the first to use the enterprise value data from real estate investment trust companies composed of share prices available on capital markets for calculating discount rate and risk premium in property market.
5
Copiello, Sergio, and Simone Coletto. "The Price Premium in Green Buildings: A Spatial Autoregressive Model and a Multi-Criteria Optimization Approach." Buildings 13, no. 2 (January 17, 2023): 276. http://dx.doi.org/10.3390/buildings13020276.
Full textAbstract:
The energy issue has given rise to a prolific research field, which branches into several strands. One of these strands focuses on the role played by building energy features in shaping property prices. Indeed, market players are expected to show a higher willingness to pay for building units characterized by higher energy performance. The study of the so-called price premium for building energy efficiency has flourished in the last decade or so; plenty of evidence is now available concerning its occurrence, although its magnitude is still debated. The literature relies on the methodological frameworks of statistical modeling and multiple regression, primarily employing hedonic price models. Lately, spatial autoregressive models have also been adopted. Here, we propose to deal with estimation of the price premium by adopting an innovative perspective. In particular, we use a methodological framework in which regression models are complemented with a multi-criteria optimization approach. Using a spatial autoregressive model first, and with D as the reference energy rating band, we find the following price premiums: 55% for A4, 42% for A3 to A, 20% for B or C, −14% for F, and −29% for G. The multi-criteria optimization approach proves efficient in estimating the price premium. The estimates above are essentially confirmed: the results converge for all the energy rating bands except for G.
6
HUI, Eddie C. M., Cheuk-kin TSE, and Ka-hung YU. "THE EFFECT OF BEAM PLUS CERTIFICATION ON PROPERTY PRICE IN HONG KONG." International Journal of Strategic Property Management 21, no. 4 (December 20, 2017): 384–400. http://dx.doi.org/10.3846/1648715x.2017.1409290.
Full textAbstract:
In response to the public’s increasing awareness of sustainable development, the construction industry has introduced “green” buildings which emphasize better environmental performance. However, as a building’s environmental performance is difficult to discern for laymen, different green building certifications have been established for evaluations in this regard. This study evaluates whether there exists a price premium for living space in buildings certified with BEAM Plus. The findings show that the prices of flats in BEAM Plus-certified buildings are 4.4% higher than those in nonregistered buildings, and that housing units in buildings with an “unclassified” rating are transacted at a discount of 5.9%. Nevertheless, if homebuyers mistake an “unclassified” building for a non-registered building, due to the non-disclosure of the “unclassified” result by developers, the price premium of BEAM Plus certification becomes higher (6.2%). Regardless, the price premium is much lower than those on the office sector. The reasons behind such differences can be attributed to the disparities in the tangible and intangible benefits associated with green living space and green office space. Policy implications with reference to Hong Kong’s GFA concession policy are then discussed.
7
Xiong, Chuyi, and Ka Shing Cheung. "UNDERSTANDING SELLERS’ AGENTS IN THE RESIDENTIAL PROPERTY MARKET." International Journal of Strategic Property Management 25, no. 3 (March 29, 2021): 179–89. http://dx.doi.org/10.3846/ijspm.2021.13724.
Full textAbstract:
Buyers in the property market often use an agent who is employed by the seller to assist their home searches. This unique and widely used agency arrangement in the property market is known as “sellers’ agents”. While principal-agent theory advocates that buyers should directly hire their agents (i.e., buyers’ agents) to do the home-hunting, search theory however implies that sellers would employ their agents (i.e., sellers’ agents) to increase the probability of the sale and selling prices. Although sellers’ agents and buyers’ agents are two very distinct institutions, many previous studies assume that their agency characteristics are identical and provide limited insights on how such a seemingly subtle but crucial agency arrangement affects transaction outcomes. Using transaction data from Wuhan China, this study disentangles the effects of the buyers’ and sellers’ agents on properties’ selling prices and their time on the market. The findings indicate that on average transactions conducted by sellers’ agents will be associated with a significant selling price premium of around 3.4%. As a critical test, we further show that the transactions completed by sellers’ agents with selling price premiums will have a shorter marketing time than those completed by buyers’ agents.
8
D’Alpaos, Chiara, and Paolo Bragolusi. "The Market Price Premium for Buildings Seismic Retrofitting." Sustainability 12, no. 21 (October 22, 2020): 8791. http://dx.doi.org/10.3390/su12218791.
Full textAbstract:
The Italian territory is largely prone to seismic risk and 6 million buildings require seismic retrofitting. In the last three main seismic events (Abruzzo 2009, Emilia Romagna in 2012 and in Lazio in 2016) 633 people died and considerable financial losses such as the structural collapse of buildings and interruption of production activities were incurred. During the period 1944–2017, economic losses caused by seismic events amounted to EUR 212 billion. More than 80% of the entire building stock does not respect seismic design standards provided by Italian regulations (NTC 2018). Seismic retrofitting of buildings may avoid many deaths and financial losses, as well as increase people’s safety. In addition, seismic retrofitting of buildings may also generate an increase in real estate asset value (namely a market price premium), which may accelerate investments. Despite the relevance of this issue, there is a lack of literature, which investigates the key factors in boosting investments and the market price premium for retrofitted buildings in detail. The aim of this paper is to fill this gap with respect to the Italian Real Estate market. To estimate the capitalization effect of benefits produced by seismic retrofitting on property market values, it is fundamental to know how much people are willing to pay for it. As, to our knowledge, there are no available datasets which provide house characteristics, including seismic performances and market prices of Italian real estate assets, we implemented a contingent valuation approach to determine the market price premium for retrofitted assets. In detail, information about the willingness to pay (WTP) an additional price for a seismically retrofitted home (by considering different risk exposure), ceteris paribus was elicited using open-ended questions in a self-administered web interview. In particular, we applied the methodology to a case study, i.e., a contingent scenario related to masonry-detached houses located in a seismic hazard zone. Our results revealed that individuals are willing to pay an additional price for retrofitted assets and the average market price premium ranges from 10% to 52% of the property market price.
9
Fraser, Steve P., and Marcus T. Allen. "International Real Estate Review." International Real Estate Review 19, no. 2 (June 30, 2016): 249–64. http://dx.doi.org/10.53383/100222.
Full textAbstract:
Considerable prior research confirms the existence of real estate price premiums associated with golf course amenities in residential development projects. This study examines a unique residential development project in which membership in a golf club is appurtenant to the real estate: ownership of certain (but not all) dwellings in the project includes deeded membership in the project¡¦s golf club. In this development project, golf memberships can only be obtained or disposed of by acquiring or selling the associated dwelling, respectively. The results of this analysis indicates that price premiums associated with appurtenant golf memberships, after controlling for golf course view and other relevant property characteristics, are significantly positive. Furthermore, the results indicate that the magnitude of the price premium for appurtenant golf memberships varies across dwelling types (detached vs. attached) in this project. These findings may be important for housing developers, consumers, lenders, appraisers, and property and income tax authorities.
10
Bao, Helen X. H., and Doris Ka Chuen Mok. "International Real Estate Review." International Real Estate Review 23, no. 3 (September 30, 2020): 367–95. http://dx.doi.org/10.53383/100306.
Full textAbstract:
This study examines the impacts of the Guangzhou-Shenzhen-Hong Kong Express Rail Link on the residential property prices in West Kowloon, in which the terminus and only station of the Hong Kong section of the high-speed rail link is located. The express rail is characterised as being a link between Hong Kong and her motherland, China, which is a major source of buyers of property in Hong Kong. We investigate if there is an east-west connection premium introduced by the project by examining the spatial and temporal changes of property prices in the affected areas. Based on a sample of 282,131 transactions, this study uses the hedonic pricing and repeat sales models to examine whether property prices in West Kowloon have increased because of the development of the high-speed rail which signifies a link between Hong Kong and China and whether they have dropped because of the 2019 political movements which emphasize a decoupling. We find significant and consistent evidence to support these hypotheses from both the hedonic price and repeat sales models. The accessibility premium has been capitalised into property prices since the announcement of the project, and the size of the premium is the largest during the announcement period. However, the east-west connection premium is significantly offset by the recent events of political unrest, with properties that are located nearest the West Kowloon Station being the most affected. We derive policy implications regarding practical implications for the design and implementation of land value capture schemes and urban planning.
11
Taltavull, Paloma, Ion Anghel, and Costin Ciora. "Impact of energy performance on transaction prices." Journal of European Real Estate Research 10, no. 1 (May 2, 2017): 57–72. http://dx.doi.org/10.1108/jerer-12-2016-0046.
Full textAbstract:
Purpose This paper aims to estimate the green premium effect of retrofitted apartments in Bucharest and draw comparisons with international examples. Design/methodology/approach A geo-referenced transaction database including information on whether the property had been retrofitted is utilised. The paper uses two approaches to test the green premium. One is a hedonic model controlled by areas to estimate the price incentive of a green building. The second is a STAR GLS model evaluating the diffusion effect of house prices spatially by sub-market and assessment upon the pricing effect of green characteristics. Findings The authors’ findings suggest a green premium in two Bucharest areas of between 2.2 per cent and 6.5 per cent. Spatial diffusion effects are shown to contribute positively to house prices, but the unobserved spatial component reduces this effect. Originality/value This paper is the first to assess price impacts of green characteristics in Bucharest and one of the first analysing green premium using spatial techniques. The analysis is of significance to policymakers and real estate developers.
12
Liu, Fangyuan, Kaili Chen, Tianzheng Zhang, Yingjie Zhang, and Yan Song. "Will Good Service Quality Promote Real Estate Value? Evidence from Beijing, China." Land 11, no. 2 (January 20, 2022): 166. http://dx.doi.org/10.3390/land11020166.
Full textAbstract:
In the field of land use and urban management, real estate value-added issues have attracted much attention. Previous studies mainly focused on the premium of basic public services (such as infrastructure) in real estate value. As an important part of urban management, the contribution of property service is often underestimated. Few empirical studies mentioned the potential contribution of property service quality. Based on this, this paper aims to confirm and quantitatively evaluate the premium of good service quality in real estate value utilizing 155,845 samples of housing resale transactions in Beijing from 2012 to 2019. Furthermore, we also explore the dynamics and heterogeneity of the above premium. Our results show the following: Firstly, good service quality does show premium in real estate value, and the higher the service quality, the greater the premium in housing price. Secondly, this premium keeps increasing during our study period. With urbanization and rising incomes of residents, property service is increasingly important. Thirdly, the contribution of service quality to real estate value is greater when serviced houses have a higher price or larger area, are relatively newer, or further away from the city center. The findings of this current research not only deepen our understanding of service quality’s premium in real estate value, but also provide implications for urban management.
13
Cui, Nana, Hengyu Gu, Tiyan Shen, and Changchun Feng. "The Impact of Micro-Level Influencing Factors on Home Value: A Housing Price-Rent Comparison." Sustainability 10, no. 12 (November 22, 2018): 4343. http://dx.doi.org/10.3390/su10124343.
Full textAbstract:
The housing sales market in China has flourished and gained considerable interest, while the housing rental market has lagged behind and been ignored over the past two decades. With the acceleration of urbanization, the housing rental demand is rising rapidly. Exploring and comparing the influencing factors on housing sale prices and rental prices has significance for sustainable urban planning and management. Using house purchase transaction and rent transaction data in 2017, as well as the average housing price and rent data in 2016 in Beijing, China, this paper compares the spatial distribution and it employs the hedonic price model and quantile regression model to quantify the average and distributional effects of micro-level influencing factors on housing prices and housing rents. Results show that housing prices and housing rents both have a decentralized distribution with multiple centers, but rents of residential communities with high housing prices may not necessarily be high. Both homeowners and renters prefer properties with good structural, locational, and neighborhood characteristics, as well as a good school attendance zone, whereas they still differ in terms of preferences. Homeowners prefer a higher-quality living environment. Renters are more concerned with proximity to an employment center and public transit convenience. Moreover, the price premium of school quality for homeowners exceeds the premium for renters. Higher-priced homeowners or renters differ in the preferences from lower-priced homeowners or renters. Higher-priced homeowners and higher-priced renters are more willing to live in property with a larger number of bedrooms, proximity to a major employment center, park, or school, as well as a location in a school attendance zone with higher school quality.
14
Hui, Eddie Chi-man, Ka-hung Yu, and Cheuk-kin Tse. "The impact of environmental management awards and certifications in property management on property price." Facilities 34, no. 5/6 (April 4, 2016): 314–38. http://dx.doi.org/10.1108/f-04-2013-0029.
Full textAbstract:
Purpose As the awareness of environmental preservation and of sustainable development have become increasingly pronounced among various stakeholders, such as governments and communities, many businesses, in response, commence to introduce environmental-friendly measures and/or implement an environmental management system (EMS) in their daily operations. Even a service-oriented industry such as property management is no exception. To showcase their commitment to this cause, property management companies tend to obtain different environmental certifications. This study aims to investigate the effect of green property management, through environmental certifications, on property price. Design/methodology/approach The hedonic price model is used to determine the impacts of different environmental certifications on prices of selected residential properties in Hong Kong. Three districts from different parts of Hong Kong, including 16 private residential developments, are covered in this study. Findings The results show that ISO 14001 certification itself is not statistically significant in explaining property price. It is only when a property management company has obtained other local environmental management awards/certificates that varying levels of (positive) property price premiums are found. Nonetheless, the authors also find that controlling for other housing attributes, obtaining as many environmental certifications as possible does not necessarily result in the highest property price premium. Research limitations/implications Nonetheless, the data sample has its limitations, such as its relatively small size and the unavailability of housing attribute(s) such as orientations. Practical implications For the implications, the value of environmental management awards/certificates, from the perspective of the end-users of property management services, is based on the scopes of these environmental certifications; the promotional effort on the part of organizations behind these awards/certificates; the disclosure of information about the EMS itself and the assessment criteria; and the public’s perceptions as to the companies’ rationale behind such certifications. Originality/value The study has provided some insights regarding the effect of various management standard certifications in property management, from the perspective of the end-users of the service (i.e. homeowners and potential homebuyers). This serves as a reference for developers, property managers, buyers and users alike.
15
Ma, Alyson, and Andrew Narwold. "Which Way is Up? Orientation and Residential Property Values." Journal of Sustainable Real Estate 11, no. 1 (January 2019): 40–59. http://dx.doi.org/10.22300/1949-8276.11.1.40.
Full textAbstract:
Builders have long been cognizant of the importance of the siting of a house on a lot, whether to shelter from prevailing weather, allow better access to natural light, gain a scenic view, or more recently for optimal capture of solar energy. Using 2016–2017 sales data for the County of San Diego, we examine the market valuation of house orientation. San Diego provides a good research area as the topography does not lend itself to a grid-like pattern for the street system. Orientation is divided into eight directions (south, southeast, east, . . .) and hedonic price equations are estimated. In addition, the analysis includes proximity to a cul-de-sac and street intersection as explanatory variables. The results suggest that house orientation is a significant factor in determining house valuation. Houses oriented directly on an east-west axis command a premium over houses oriented on a north-south axis. After correcting for spatial autocorrelation, neither cul-de-sac nor intersection locations are significant factors in determining housing prices. Moreover, a robustness check using a small sample of 241 transactions provides inclusive results regarding a premium for solar panel installation.
16
Chi-man Hui, Eddie, Cheuk-kin Tse, and Ka-hung Yu. "The effect of ISO14001 certification in property management on property price." Journal of Facilities Management 12, no. 2 (April 29, 2014): 97–117. http://dx.doi.org/10.1108/jfm-03-2013-0015.
Full textAbstract:
Purpose – As environmental awareness has become increasingly pronounced among various stakeholders such as governments and communities, many businesses start to adopt a more environmental-friendly approach in their operations. Even a service-oriented industry such as property management is no exception. One way to showcase a company's commitment to this cause is to become ISO14001-certified, under which it is required to implement an environmental management system. In light of this, this paper aims to investigate the impact of this certification in property management, along with two other well-known management certifications/awards in ISO9001 and Hong Kong Management Association Quality Award (HKMAQA), on property price. Design/methodology/approach – The hedonic price model was used to determine whether or not there is a relationship between ISO14001 certification (as well as ISO9001 and HKMAQA) and property price, and if so, its impact. Three districts from different parts of Hong Kong, including 17 private residential developments, were covered in this research. Findings – The results show that a flat managed by a company with ISO9001 certification is 8.87 percent higher than another flat managed by a non-ISO9001-certified property management companies (PMC); the adoption of ISO14001 certification appears to help generate a premium of about 3.65 percent in property price for a PMC which has already been ISO9001-certified; and for a company already with both ISO9001/14001 certifications, the obtaining of HKMAQA brings about an extra 15.37 percent in housing price. It can be said that the impact of ISO14001 certification on property value is smaller than that of the other two management standards. Research limitations/implications – The findings do not necessarily suggest that the adoption of ISO14001 (or HKMAMA) generates the exact same premium to a residential property by itself, as two or more components in tandem may create more value than the sum of the parts. Nonetheless, considering that most companies have already been ISO9001-certified prior to considering an ISO14001 certification, they, as separate variables, are inevitably highly correlated which could be an issue when using methods such as hedonic models. This renders the assessment of the impact on property price solely attributed to ISO14001 rather problematic if they are studied together. Practical implications – In the short run, ISO14001 certification, as a public relations tool, might actually help flats within these developments to gain an advantage over the competitors within the district, or at least offset the adverse impact of some of its intrinsic defects in order to stay competitive (for instance, the age issue and the smaller brand name effect due to the development's lack of scope), but not in the long run. Originality/value – The paper has provided some insights regarding the effect of various management standard certifications in property management, from the perspective of the end-users (i.e. homebuyers), rather than from that of those involved in the operations as seen in previous studies. This serves as a reference for developers, property managers, buyers, and users alike.
17
Andersson, Magnus, Fredrik Kopsch, and Peter Palm. "How cultural values are reflected on the housing market – direct effects and the cultural spillover." International Journal of Housing Markets and Analysis 12, no. 3 (June 3, 2019): 405–23. http://dx.doi.org/10.1108/ijhma-02-2018-0016.
Full textAbstract:
Purpose The purpose of this paper is to analyse two questions. First, is there, and if so, how large is the price premium paid for a building exhibiting a cultural value? Second, are there any spillover effects of buildings with cultural values on sales prices of neighbouring houses? Design/methodology/approach Using a unique database of all buildings in the region of Halland, Sweden, combined with transaction data, hedonic models can be estimated, with spatially lagged variables describing proximity to three classes of culturally classified building – A, B and C – corresponding to building of national interest, building of regional interest and building of local interest. In addition, the authors also estimate models with a spatial specification on the error term, in an attempt to control for omitted variables. Findings The results indicate that cultural classification plays a role in determining the price of a property, with large effects (ranging between 36 and 60% price premiums) for the highest classification. In addition, the authors find evidence of a cultural externality, houses in the vicinity of building with high cultural value sell at a small, but statistically significant premium of 1%. Originality/value The cultural externality may be overlooked when it comes to valuation of cultural values in society, and therefore, it is likely that warranted protection acts to preserve cultural values in buildings become less than the social optimum. This paper suggests a new measure to cultural values contrasting previous research that rely on cultural preservation. This approach should limit problems with measurement errors that may lead to biased results.
18
Molina, German, Michael Donn, Micael-Lee Johnstone, and Casimir MacGregor. "Can green labels become the new normal?" E3S Web of Conferences 111 (2019): 03053. http://dx.doi.org/10.1051/e3sconf/201911103053.
Full textAbstract:
This study sought to review the effectiveness of green labels on the residential real estate market. As past studies revealed, green labels increased property prices, which motivated developers to build more green certified buildings. However, contradictory studies revealed that many developers did not use green labels due to a lack of consumer demand. Therefore, what impact do green labels have on the residential housing market? A meta-analysis of 36 articles presenting 52 different studies, published between 2008-2018, suggests that the price premium charged for green labels may have been systematically overestimated. Consumers’ willingness-to-pay (derived from correlating green labels with purchase price) does not necessarily represent the average consumer but green consumers. The conclusion that follows from this analysis is that full market transformation via green labels is unlikely to take place because only a fraction of the population is willing to pay the premium. Therefore, full adoption is unlikely without other market “interventions”.
19
Salinger, Eyal, Daniel Shefer, and Nir Mualam. "WORLD HERITAGE DESIGNATION AND PROPERTY: THE IMPACT OF PRESERVATION ON THE PRICE OF HISTORIC ASSETS." International Journal of Strategic Property Management 26, no. 5 (December 12, 2022): 397–409. http://dx.doi.org/10.3846/ijspm.2022.18156.
Full textAbstract:
The restrictions and requirements imposed by historic preservation regulations bring about many changes to the rights of property owners. They might impose additional costs, most notably by prohibiting the demolition of designated buildings and thus decreasing property-development opportunities. The objective of this study is to examine what happens following world heritage designations; specifically, if and how such designations impact the property values of historic buildings. Using the hedonic price method, we measure the value of the option to demolish and rebuild that is denied to owners of designated buildings. We also measure the value of preservation regulations, expressed in the prices of apartments in designated buildings. The study area is the “White City” of Tel Aviv, which UNESCO designated as a world heritage site. The findings suggest that the market price of a designated building is on average 12.5% lower than its theoretical value if the building was not subject to historic preservation regulations. Moreover, a premium of approximately 14% was found in the price of apartment units in designated buildings if the building underwent preservation. These findings could have a direct impact on public policies designed to promote the preservation of historical buildings in world heritage sites.
20
Erol, Isil, and Tanja Tyvimaa. "Explaining the premium to NAV in publicly traded Australian REITs, 2008–2018." Journal of Property Investment & Finance 38, no. 1 (September 17, 2019): 4–30. http://dx.doi.org/10.1108/jpif-06-2019-0078.
Full textAbstract:
Purpose The purpose of this paper is to explore the levels and determinants of net asset value (NAV) premiums/discounts for publicly traded Australian Real Estate Investment Trust (A-REIT) market during the last decade. A-REITs were severely affected by the global financial crisis as S&P/ASX 200 A-REIT index-listed property stocks experienced 47 per cent discount to NAV, on average, in 2008–2009 crisis. Since 2013, A-REIT sector has exhibited a strong recovery from the financial crisis and traded at high premiums to date. Understanding the relationship between pricing in the public and private real estate markets has taken on great importance as A-REITs continue to trade at significant premium to NAV unlike their counterparts in the USA and Europe. Design/methodology/approach This paper follows a rational approach to explain variations in NAV premiums and explores the company-specific factors such as liquidity, financial leverage, size, stock price volatility and portfolio diversification behind the A-REIT NAV premiums/discounts. The study specifies and estimates a model of cross-sectional and time variation in premiums/discounts to NAV using semi-annual data for a sample of 40 A-REITs over the 2008–2018 period. Findings The results reveal that A-REIT premiums to NAV can be explained not only by the liquidity benefit of listed property stocks but also positive financial leverage effect. During the past decade, A-REITs have followed an aggressive approach in financing their growth by using borrowed funds to purchase assets as the income from the property offsets the cost of borrowing and the risk that accompanies it. Debt-to-equity ratio has to be considered as an important source of NAV premiums as highly geared A-REITs that favoured debt financing over equity financing traded at significant premiums to NAV of their underlying real estate assets. Practical implications The paper includes implications for the REIT market investors. The regression analysis shows that specialty A-REITs with a focus on creative market niches traded at higher premiums compared with other property stocks, especially in the post-GFC recovery period. Specialty REITs are more highly valued by the market than their traditional specialised counterparts (e.g. office and retail REITs), and those pursuing a diversified strategy. Originality/value This paper presents an Australian case study as the A-REIT market provides a suitable environment for testing the effect of financial gearing on the REIT premium to NAV. The study provides empirical evidence supporting the importance of debt-to-equity ratio in explaining the variation in A-REIT NAV premiums.
21
Singhal, Shaleen, and Yogesh Tyagi. "Analyzing the Influence of Metro Stations on Commercial Property Values in Delhi: A Hedonic Approach." Real Estate Management and Valuation 29, no. 4 (December 1, 2021): 10–22. http://dx.doi.org/10.2478/remav-2021-0026.
Full textAbstract:
Abstract The effect of proximity to a transit system on property values has become a key issue of debate regarding public infrastructure and economic development. This article aims to examine the impact of selected stations along the Blue line of Delhi Mass Rapid Transit System (MRTS) on commercial property prices. The research analyzed 1,413 commercial property parcels sold before and after the commissioning of Blue line in 2005. Hedonic Price Analysis (HPA) was used to estimate the effects of proximity to the metro rail on commercial property values. The method was applied to two time periods, i.e., from 2000-2004 and 2005-2008, coinciding with planning and construction (pre-commissioning phase and the operation phase (post-commissioning phase) of metro rail using actual sale prices of commercial units. The results indicate that a station node shows a negative trend during the planning and construction period. However, the operation period has produced a significant price premium associated with commercial properties, connected with improved accessibility. The coefficients indicate that MRTS has induced an increase in prices from INR 732.80 to INR 246.19, and its radius of impact covers an area of approximately 1/2 km from the stations. The methodology and results provide insight with a specific focus on commercial real estate values in other metropolitan cities developing and expanding MRTSs.
22
Jantyik, Lili, and Áron Török. "Estimating the Market Share and Price Premium of GI Foods—The Case of the Hungarian Food Discounters." Sustainability 12, no. 3 (February 4, 2020): 1094. http://dx.doi.org/10.3390/su12031094.
Full textAbstract:
The food security of the European Union heavily relies on the food quality systems where Geographical Indications (GI) play an important role. European food is considered world-wide secure and high quality, therefore European food names and designations represent value that should be protected as intellectual property. Despite the importance of GIs in Europe, the availability of the related economic data is very limited, and the only available comprehensive database (in the case of GI foods, the Database of Origin and Registration (DOOR)) details only some very basic and mainly administrative characteristics of such products. From an economic perspective, market size and price premium of these products are the most important in order to assess the economic sustainability of European GI foods. Empirical datasets describing these characteristics of GI products are scarcely available and can be collected only case by case. Therefore, the purpose of this study is to estimate the market size for food products with geographical indications available in Hungary (excluding wines and spirits) and their price premium compared to their direct substitute products, based on empirical data. We conducted monthly mystery shopping for one year (January–December 2018) at three food discount stores (Lidl, Aldi, and Penny Market) operating in Budapest. We collected data on all the GI products available in the stores and their closest substitutes; then the dataset was subsequently analysed and compared to the main characteristics of the DOOR database. The reason for choosing the discounters is that these stores have expanded spectacularly in recent years and are mostly available to average consumers, both in Hungary and across Europe, and based on the main characteristics of this type of retail (limited product portfolio targeting price-sensitive consumers), the data collected here can be considered to indicate the minimum level of market share and price premium. Our results show that currently, GIs have only limited importance in the Hungarian food market, in terms of both the number of products and their market share, as only a small number of such products appear in the food discounters’ supply. As regards the premium achievable with consumer prices, the average price premium is remarkably high (43% on average), even in the case of discounters. Our empirical results also suggest that in Hungary, there is an opportunity to increase the importance of GI foods, both in terms of availability and market share. For Hungarian GI food producers and processors, the level of price premium achievable in discounters might be attractive enough to stimulate their presence in the market.
23
Warren, Clive M. J., Peter Elliott, and Jason Staines. "The impacts of historic districts on residential property land values in Australia." International Journal of Housing Markets and Analysis 10, no. 1 (February 6, 2017): 66–80. http://dx.doi.org/10.1108/ijhma-02-2016-0015.
Full textAbstract:
Purpose Focusing on the externality effects of historic districts, this paper aims to assess and compare the impact of historic district designation on the value of residential vacant land property. Design/methodology/approach Hedonic regression is used to analyze data from 4,233 residential vacant site transactions to measure the influence of historic district designation on the price of residential vacant site properties. Findings Results support established theory and research on other residential property types, showing a significant and positive relationship between designation in a historic district and property prices. Residential vacant sites located in a designated historic district sold at a 10-11 per cent premium compared to similar vacant sites not located in a historic district. Originality/value This is the first empirical study of the influence of historic districts on residential vacant land property. The paper extends limited previous literature on the externality effects of historic districts through detailed analysis of a large Australian housing market (Brisbane).
24
Fleishman, Larisa, Nir Fogel, Israela Fridman, and Yaffa Shif. "The effect of school performance on property values: a literature review and a case study." Journal of European Real Estate Research 10, no. 3 (November 6, 2017): 277–302. http://dx.doi.org/10.1108/jerer-09-2016-0035.
Full textAbstract:
Purpose This paper, a pioneering one in the Israeli context, aims to augment the research literature on school quality and housing prices by examining the effect of primary-school performance on local property values. It focuses on the main question whether the release of students’ test scores offered households a new source of information with which they could evaluate the quality of schools, thereby affecting local housing markets. Design/methodology/approach Several models that examine a variety of transactions, schools and locality characteristics that affect house prices are estimated. Using different administrative sources of information, a wide array of socioeconomic characteristics of students, parents and homebuyers, as well as locality features, is constructed and merged. This information, combined with students’ scores on Meitzav exams (standardized student achievement tests) in 2009-2012 and house prices, illuminates the relationship between student achievements and the prices of houses purchased within the defined attendance zones. Findings Student achievements, mainly in the state education system, are found to have a positive and statistically significant effect on housing prices. Accurate information published about a certain school that showed much stronger achievements than those yielded by information attainable about the same school before school-level publication, does contribute to boost house prices in the post-publication period. The socioeconomic background of the students’ parents was found to have a significant effect on house prices. The premium for housing value is much higher in the most prestigious, prime demand districts, in which the housing supply is limited and the housing price level is higher than in that the peripheral districts. Originality/value This study not only breaks new ground in the Israeli context but also contributes to the existing literature, by investigating the relation between publishing students’ scores and property values near the same schools, on a national scale. Given that the housing price dynamics and the spatial differentiation of housing stock are extremely hot issues in many European cities, the results of this study could serve as an important tool for better understanding the housing price responses to market incentives, resulting in specific patterns in local housing markets. This paper could be thus applicable in housing policy outline, urban design and planning.
25
Liu, Xiaolong, and Weidong Qu. "International Real Estate Review." International Real Estate Review 18, no. 1 (March 31, 2015): 113–29. http://dx.doi.org/10.53383/100195.
Full textAbstract:
Since its liberalization in 2003, the urban land lease market in China has experienced substantial growth in terms of both the volume and value of transactions. At the same time, significant transaction premiums are observed in these land transactions; these premiums make the general public skeptical about the emergence of a property market bubble that stems from aggressive bidding in the land market. In this paper, we seek to rationalize this phenomenon by means of the event study method. By using a land transaction dataset from Beijing for the period 2003 to 2013, we find that the capital market reacts significantly to land bidding events. In addition, the land transaction premium observed in the Chinese land market can be explained by the signaling effect, in that developers tend to use the bidding price as a signaling device to disseminate favorable private information to the marketplace.
26
ATREYA, AJITA, WARREN KRIESEL, and JEFFREY D. MULLEN. "VALUING OPEN SPACE IN A MARSHLAND ENVIRONMENT: DEVELOPMENT ALTERNATIVES FOR COASTAL GEORGIA." Journal of Agricultural and Applied Economics 48, no. 4 (November 2016): 383–402. http://dx.doi.org/10.1017/aae.2016.25.
Full textAbstract:
AbstractIn a coastal environment, open space can exist as land set aside by a real estate developer or as tidal marshland. In this article, we determine the relative values of both types of open spaces in a coastal county in Georgia using a spatial hedonic price framework. Results indicate that (1) there is a price premium associated with the marshlands and (2) developers have market incentives to incorporate more open space into their designs of residential subdivisions. Regarding marshlands, we also find that accessibility is an important variable that adds much more value to a property than just the proximity.
27
Qin, Zhijiao, Yan Yu, and Dianfeng Liu. "The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China." Sustainability 11, no. 2 (January 17, 2019): 471. http://dx.doi.org/10.3390/su11020471.
Full textAbstract:
Mixed-use development is theoretically considered to enhance the residential value of an area. However, limited empirical research has focused on European and North American cities. HOPSCA is a real estate project that integrates hotels, offices, parks, shopping malls, conference centers, and apartments. As an important mixed-use development project in Chinese cities, HOPSCA is designed to improve the quality of urban life and to enhance the residential value of an area. Few studies have explicitly examined the effect of HOPSCA on residential property values, let alone linked this question to particular types of HOPSCA. To bridge this research gap, we selected Wuhan City in China as a case study to explore the effects of HOPSCA on residential property values. Specifically, we used the potential model to quantify the effects of HOPSCA and used the geographically weighted regression (GWR) method to estimate the relationship between HOPSCA variables and residential property values. The results are as follows: (1) the effects of HOPSCA on residential property values are statistically significant with positive and negative effects. The balanced-development HOPSCA generated the greatest effects, with the highest premium of 10.76% placed on residential properties. Moderate price premiums of 3.57% and 1.83% were generated under the influence of the commerce-oriented HOPSCA and housing-oriented HOPSCA, respectively. By contrast, the business-oriented HOPSCA exerted a negative effect on residential property (−2.43%). (2) Significant spatial heterogeneity exists on the effect of HOPSCA on residential property values. The results showed that the influence of different types of HOPSCA, viz. the higher the compatibility between the HOPSCA type and the socioeconomic context of Wuhan, the higher the premium captured by residential properties within the city areas. HOPSCA benefits the improvement of the quality of urban life, which promotes urban development. For policy makers and real estate developers, our findings suggest that matching the development types and the spatial layouts of HOPSCA with the regional socioeconomic contexts is critical for enhancing the value performance of such projects.
28
Ren, Pengyu, Yuanli Li, and Kairui You. "Residents’ Demands for Urban Retail: Heterogeneity in Housing Structure Characteristics, Price Quantile, and Space." Land 10, no. 12 (December 1, 2021): 1321. http://dx.doi.org/10.3390/land10121321.
Full textAbstract:
A thorough understanding of residents’ demands plays an important role in realizing the rational distribution of urban retail (UR) and promoting the habitability of cities. Unfortunately, these demands for UR are currently under-researched. To solve this problem, this study aims to quantify the capitalization effect of UR on housing prices and explores the impact of heterogeneity in housing structure characteristics, price quantile, and space on the residents’ demands for UR according to the hedonic price model, quantile regression, and geographically weighted regression in Chengdu. The results of these models show the following: (1) good property management and building sound insulation can reduce the negative influence of UR on residents’ lives; (2) only the owners of low-price houses are willing to pay a premium for UR; and (3) residents’ demands for UR increase from the central area to the peripheral area of Chengdu, and an inverted U-shaped relationship was found between housing prices and the UR level. A comprehensive analysis of the heterogeneity of residents’ demands for UR can provide a reference for planning departments, real-estate developers, and UR owners and promote the sustainable development of UR.
29
E. Larsen, James, and John P. Blair. "Price effects of surface street traffic on residential property." International Journal of Housing Markets and Analysis 7, no. 2 (May 27, 2014): 189–203. http://dx.doi.org/10.1108/ijhma-12-2012-0062.
Full textAbstract:
Purpose – The purpose of this study is to gauge and compare the impact of surface street traffic externalities on residential properties. Limited previous research indicates that negative externalities dominate for single-family houses. Our objective is to verify that this result applies to our sample, and to determine if the same result extends to multi-unit rental properties. Design/methodology/approach – Hedonic regression is used to analyze data from 9,680 single-family house transactions and 455 multi-unit rental properties to measure the influence of surface street traffic on the price of the two property types. Findings – Houses located adjacent to an arterial street sold at a 7.8 per cent discount, on average, compared to similar houses located on collector streets. Limiting the analysis to houses adjacent to an arterial street (where traffic counts were available), price and traffic count are negatively related. The results for multi-unit rental dwellings are dramatically different. Multi-unit properties adjacent to an arterial street sold at a 13.75 per cent premium compared to similar properties on collector streets, and when limiting the analysis to properties on arterial streets, no significant relationship was detected between price and traffic volume. Originality/value – This is the first empirical study of the influence of surface street traffic on both single-family houses and multi-unit rental residential property. Evidence is provided that traffic externalities impact the two types of properties quite differently. To the extent that this result applies to other locations, the authors suggest planners may be able to use such information to reduce the negative effect of traffic externalities on residential property associated with changes that will increase traffic flow.
30
Lee, Sangwan, and Liming Wang. "Intermediate Effect of the COVID-19 Pandemic on Prices of Housing near Light Rail Transit: A Case Study of the Portland Metropolitan Area." Sustainability 14, no. 15 (July 25, 2022): 9107. http://dx.doi.org/10.3390/su14159107.
Full textAbstract:
This study explored the dynamics of a residential property value premium for proximity to a light rail transit (LRT) station in the intermediate term (roughly two years) since the pandemic. We applied a longitudinal quasi-experimental design using repeat sales data from the Portland Metropolitan Area, Oregon. Our results indicate that the effect of the pandemic on prices of housing near LRT stations differs between single-family and multi-family markets. Since the pandemic outbreak, there has been no statically significant difference in the price appreciation between single-family (SF) housing within an LRT service area and otherwise similar SF homes; however, for multi-family (MF) homes, those within an LRT service area have experienced a 3.0% lower price appreciation rate than MFs outside such areas with similar characteristics. Our findings help better highlight the impact of the pandemic on the real estate market and can inform discussions about longer-term changes in post-COVID cities and their planning.
31
Liu, Kai, and Toshiaki Ichinose. "Hedonic Price Modeling of New Residential Property Values in Xi’an City, China." International Journal of Social Science Studies 5, no. 9 (September 1, 2017): 42. http://dx.doi.org/10.11114/ijsss.v5i9.2510.
Full textAbstract:
This study analyzed new residential property values of Xi’an City in March, 2014. Results show that accessibility indices, such as distance to CBD, have been well capitalized into the residential property values. Particularly, a within-zone housing unit is sold 9.4% more than if it was outside the attendance zone of a Key Primary School, i.e. home buyers have how much willingness-to-pay for the high-quality educational resource. Another corollary is got that the accessibility to subway stations has not significantly been capitalized, only with a low premium reflecting in the real estate market of Xi’an City. Considered that spatial local singularities caused by unobserved variables or estimation bias can be associated with multi-regression errors, this study herein has explored an unconventional viewpoint to residual problem, which combines the regional differences (coming from real world) and the spatial distributions of singularities (feedback from data). Furthermore, whole samples are classified into 5 agglomerations for revealing the underlying reasons about the future trend and variation of real estate market within each region. It is effective to provide scientific basis of decision making for the real estate investors and planners.
32
Kang, Chang-Deok. "Effects of spatial access to neighborhood land-use density on housing prices: Evidence from a multilevel hedonic analysis in Seoul, South Korea." Environment and Planning B: Urban Analytics and City Science 46, no. 4 (July 21, 2017): 603–25. http://dx.doi.org/10.1177/2399808317721184.
Full textAbstract:
Attaining a mixture and diversity of land use within walkable neighborhoods is an essential principle within contemporary urban planning and design. Empirical studies by New Urbanists argue that mixed land use, neo-traditional, and walkable neighborhoods yield socioeconomic benefits and generate a substantial premium in residential property prices. However, few studies apply reliable metrics to capture the connections among urban form, the spatial distribution of land use, and travel behavior and then value their combined effects on housing prices. To bridge this gap, this study calculates the metrics of spatial accessibility and centrality, combining street nodes, networks, and built density by land use type within walkable neighborhoods. We investigate empirically the extent to which residents value spatial accessibility and centrality to residential, commercial, office, and industrial space regarding housing prices in Seoul, South Korea in 2010. The multilevel hedonic price models used suggest that residents highly value urban settings that access larger volumes of commercial and residential buildings in densely spaced areas along dense street networks. However, homeowners respond negatively to higher access to industrial property and weakly to office space. This analysis identifies the value of spatial access to heterogeneous land-use density in housing prices and provides policy implications for land use, transportation, and urban design.
33
Feng, Shih-Tao, Chien-Wen Peng, Chung-Hsien Yang, and Pei-Wen Chen. "NON-LINEAR RELATIONSHIPS BETWEEN HOUSE SIZE AND PRICE." International Journal of Strategic Property Management 25, no. 3 (April 26, 2021): 240–53. http://dx.doi.org/10.3846/ijspm.2021.14607.
Full textAbstract:
This study reexamines the relationship between house size and price by using the quantile regression model. Housing transactions data of the National Taipei University Special Zone in Taiwan are adopted, and the findings are as follows. First, the total price of a smaller housing unit will increase at a decreasing rate as its size increases. The decrease in marginal price might be due to the declining marginal utility of the property right. Secondly, the total price of a larger housing unit will increase at an increasing rate as its size increases. The size premium effect might be due to the influence of conspicuous consumption. Thirdly, housing with a lower square meter price is subject to greater price competitiveness in the market, and the price will increase at a decreasing rate as the size increases. Conversely, a housing unit with a higher square meter price will decrease at an increasing rate as its size increases. This might be due to the constraint imposed by the purchaser’s housing affordability. These findings clarify the nonlinear relationships between housing size and price, and provide very useful information for decision making of the developers, home purchasers, real estate appraisers, and the governments.
34
Di Liddo, Felicia, Francesco Tajani, Paola Amoruso, Rossana Ranieri, and Debora Anelli. "The assessment of the forced sale value in the Italian residential market." Aestimum 80 (May 19, 2022): 15–32. http://dx.doi.org/10.36253/aestim-12953.
Full textAbstract:
The present research has focused on the development and experimentation of a model for the forced sale value determination. With reference to six study samples consisting of residential properties sold through judicial auctions between November 2020 and May 2021 and each of them located in an Italian region, the forced sale price, the market value assessed by a judicial valuer and the main influencing factors have been detected. The implementation of an econometric technique has allowed to obtain models for the forced sale value assessment and for the analysis of the factors that mostly influence the final hammer price and, therefore, the discount between the market value evaluated and the judicial price. In the context of the existing literature, the study represents the first attempt that proposes a quantification of the discount/premium coefficient based on the specific factors of the property, in order to provide a reliable assessment of the forced sale value.
35
Lee, Jin-Seong. "Measuring the value of apartment density?" International Journal of Housing Markets and Analysis 9, no. 4 (October 3, 2016): 483–501. http://dx.doi.org/10.1108/ijhma-08-2015-0047.
Full textAbstract:
Purpose The primary purpose of this study is to identify whether there is a price premium and consumers’ preferences for higher housing density, and whether there is a relationship between housing densities and sales prices. The second purpose was to identify if there is a non-linear relationship between housing density and prices even though housing density is directly associated with housing prices. Design/methodology/approach This paper applies hedonic modeling techniques to measure the value of development density of apartments in the metropolitan area of Seoul, South Korea. The regression of the sale price is a function of different types of variables such as density, market, location and other control variables. Findings For the first question, this paper concludes that the higher densities cause housing prices to decrease in Seoul. The summary of the results presents that housing density, floor area ratio (FAR), building coverage ratio and floor level are all important components affecting housing prices. Generally, consumers tend to buy housing with central heating systems, more parking spaces, smaller portion of rental housing within an apartment and buildings that have more of a mixed-use function. Consumers are also found to pay higher premiums for housing in areas with high population growth and less housing supply. It is conclusive that people are inclined to live in populated areas but do not want more density. For the second question, the results show that generally FAR has quadratic effects, but most housing density variables tend to have a non-linear relationship depending on the different quantile groups. Originality/value There is a knowledge gap in the area of estimating development density of apartments. Generally, studies investigating property value impacts of multifamily housing focus on external effects of the multifamily housing on home values to examine whether high density development could result in a decrease in nearby property values. These studies found that there are some positive effects. A study found that high-density housing increases property values of existing single-family homes (Joint Center for Housing Studies, 2011). More specifically, developments that are of a high design quality and superior landscaping increase values of single-family homes as well. Also, those residents who live in these high-density apartments can be good potential buyers for the existing single-family homes. The greater the number of buyers, the greater the housing market becomes. Similarly, according to a report by the Joint Center for Housing Studies (2011) at Harvard University, the presence of multifamily residents correlates with higher home values in “working communities”. Indeed, density can be an important factor determining value of apartments because of its unique characteristics. However, no empirical evidence has been provided in the literature with regard to the value of the development density. This study contributes toward improving this knowledge gap.
36
Xu, Xiang, Waishan Qiu, Wenjing Li, Xun Liu, Ziye Zhang, Xiaojiang Li, and Dan Luo. "Associations between Street-View Perceptions and Housing Prices: Subjective vs. Objective Measures Using Computer Vision and Machine Learning Techniques." Remote Sensing 14, no. 4 (February 13, 2022): 891. http://dx.doi.org/10.3390/rs14040891.
Full textAbstract:
This study investigated the extent to which subjectively and objectively measured street-level perceptions complement or conflict with each other in explaining property value. Street-scene perceptions can be subjectively assessed from self-reported survey questions, or objectively quantified from land use data or pixel ratios of physical features extracted from street-view imagery. Prior studies mainly relied on objective indicators to describe perceptions and found that a better street environment is associated with a price premium. While very few studies have addressed the impact of subjectively-assessed perceptions. We hypothesized that human perceptions have a subtle relationship to physical features that cannot be comprehensively captured with objective indicators. Subjective measures could be more effective to describe human perceptions, thus might explain more housing price variations. To test the hypothesis, we both subjectively and objectively measured six pairwise eye-level perceptions (i.e., Greenness, Walkability, Safety, Imageability, Enclosure, and Complexity). We then investigated their coherence and divergence for each perception respectively. Moreover, we revealed their similar or opposite effects in explaining house prices in Shanghai using the hedonic price model (HPM). Our intention was not to make causal statements. Instead, we set to address the coherent and conflicting effects of the two measures in explaining people’s behaviors and preferences. Our method is high-throughput by extending classical urban design measurement protocols with current artificial intelligence (AI) frameworks for urban-scene understanding. First, we found the percentage increases in housing prices attributable to street-view perceptions were significant for both subjective and objective measures. While subjective scores explained more variance over objective scores. Second, the two measures exhibited opposite signs in explaining house prices for Greenness and Imageability perceptions. Our results indicated that objective measures which simply extract or recombine individual streetscape pixels cannot fully capture human perceptions. For perceptual qualities that were not familiar to the average person (e.g., Imageability), a subjective framework exhibits better performance. Conversely, for perceptions whose connotation are self-evident (e.g., Greenness), objective measures could outperform the subjective counterparts. This study demonstrates a more holistic understanding for street-scene perceptions and their relations to property values. It also sheds light on future studies where the coherence and divergence of the two measures could be further stressed.
37
Glen, John, and Joseph Nellis. ""The price you pay": The impact of state-funded secondary school performance on residential property values in England." Panoeconomicus 57, no. 4 (2010): 405–28. http://dx.doi.org/10.2298/pan1004405g.
Full textAbstract:
This paper examines the relationship between state-funded secondary school performance and local residential property values in seven major English cities. When choosing which secondary school they wish their children to attend, parents will be aware of the school?s performance in Key Stage 3, GCSE and A- level examinations. We suggest that GCSE examination results will be the measure of school performance that parental choice will be most closely correlated with. Therefore, secondary schools with good GCSE examination results will be ?oversubscribed? in that more students will wish to attend these schools than there are places available. Schools will then have to develop mechanisms for rationing the available places - central to rationing strategies in English schools at the moment is geographical proximity of the family home to the school of choice. Parents will thus have a strong incentive to purchase houses in the ?catchment? area of high performing schools. Our results suggest that this is the case, with high performing schools stimulating a price premium in local residential property markets of between 1% and 3% for each additional 10% point improvement in the pass rate in GCSE examinations.
38
Machline, Elise, David Pearmutter, and Moshe Schwartz. "The 'Green’ Premium in Israel: Measuring the Effects of Environmental Certification on Housing Prices." Journal of Sustainable Development 11, no. 5 (September 28, 2018): 162. http://dx.doi.org/10.5539/jsd.v11n5p162.
Full textAbstract:
‘Green’ building initiatives have led to the emergence of market-based policy approaches in a number of countries. Many of these have taken the form of environmental certification for buildings. A number of studies have examined the additional construction costs involved in achieving ‘green’ certification, and these studies suggest that they are relatively low, around 2% on average. Evidence is accumulating, however, that the "green premium" – or the extra cost that homebuyers pay to purchase a property in a certified green building – is systematically higher than this.
This study aims to identify the nature and scale of the "green premium" in Israel, based on a novel comparative calculation method developed to examine how much ‘green’ building certification raises an apartment's price. We also examine how economically profitable it is to purchase a 'green' apartment for the homebuyer and for the Israeli economy overall. Finally, through a case study in Tel Aviv, we shed light on how the implementation of environmentally certified housing may lead to gentrification.
39
Ul Hassan, Naveed, Bilal Aziz, and Maryam Mushtaq. "Do Macro-Economic and Technical Indicators Matter?- a Principal Component Analysis Approach for Equity Risk Premium Prediction." European Journal of Economics and Business Studies 9, no. 1 (October 6, 2017): 46. http://dx.doi.org/10.26417/ejes.v9i1.p46-62.
Full textAbstract:
Equity risk premium contains the property of reflecting the fundamental judgments of individuals regarding risk that might exists in the economic market and the price associated with that risk. For ERP forecasting, attention is also devoted to technical indicators apart from the macro-economic variables. A set of 14 technical and 14 macro-economic variables is selected for this purpose and based on a standard predictive regression framework; all forecasts are generated by regressing ERP on a constant and a lag of macro-economic or technical indicator. It is found that as compared to macro-economic variables technical indicators provide better indications about ERP estimates. By using National Bureau of Economic Research (NBER) data of business cycle expansion and recessions, relative strength of ERP predictability is also investigated and it is found more than twice for recessions as compare to expansions.
40
Hui, Eddie C. M., and Ka Hung Yu. "International Real Estate Review." International Real Estate Review 9, no. 1 (June 30, 2006): 23–43. http://dx.doi.org/10.53383/100067.
Full textAbstract:
This study introduces a combined method, on the basis of both system dynamics and econometric modeling, in forecasting the office rental values in Hong Kong. The findings suggest that the office rental values in Hong Kong appear to be more fluctuating when the price level of the office ownership market is comparatively volatile, likely due to the over-reaction of economic trends by the supply side of the property market. It is plausible to say development lags and adjustment cost, under the current land policies in Hong Kong, are the main attributes behind this phenomenon. In order to reduce the volatility on the office market, the government should relax the approval procedures concerning changing land use, and the subsequent rearrangement of premium payment. Further, the current policies on land sales need to be revised, especially concerning the application list system. Those measures could reduce the time required and the transaction cost incurred for the supply side to adjust to the ever-changing demand.
41
Vichiensan, Varameth, Vasinee Wasuntarasook, Yoshitsugu Hayashi, Masanobu Kii, and Titipakorn Prakayaphun. "Urban Rail Transit in Bangkok: Chronological Development Review and Impact on Residential Property Value." Sustainability 14, no. 1 (December 28, 2021): 284. http://dx.doi.org/10.3390/su14010284.
Full textAbstract:
Bangkok suffered from the world’s worst traffic congestion in the 1990s due to rapidly increasing car ownership, reflecting the economic growth and road-dependent transport policy beginning in the 1960s. Due to its monocentric but scattered urban structure, traffic congestion is severe, causing tremendous economic loss, deteriorating air quality, and badly affecting the quality of life. A historical review reveals that the urban and transport plan and development were not efficiently coordinated, resulting in unorganized suburbanization and progressively more severe traffic congestion. It is important to reveal the impact of the transportation project on the housing market in order to incorporate the policies for transportation and urban development. To define the impact, the OLS hedonic price model and the local multiscale geographically weighted regression (MGWR) model were estimated, along with the condominium sales data. The results revealed that the impact of rail transit on a rise in property value significantly varied across the study area. It was estimated that, for the area along the major rail transit corridor in the city center, a premium of a location 100-m closer to the station would be more than 200 USD per square meter. At the same time, the value would be less than 80 USD for the area along the rail corridor in the suburb. These findings provide policy insights for future urban and railway development, including the proper coordination of rail transit development and urban development with subcenters, transit-oriented development, and improved pedestrian flow around transit stations.
42
Laksono, Pandu, Irham, Jangkung Handoyo Mulyo, Any Suryantini, and Dwiko Budi Permadi. "Small-Scale Farmers' Preference in Adopting Geographical Indications’ Code of Practice to Produce Coffee in Indonesia: A Choice Experiment Study." E3S Web of Conferences 316 (2021): 02018. http://dx.doi.org/10.1051/e3sconf/202131602018.
Full textAbstract:
Geographical Indication is a type of collective intellectual property that producers may use to capture the place-related value expressed in their product which involve the physical and anthropic characteristics of the production area. There is GI’s Code of Practice (CoP) that should be adopted by farmers as reference standard to maintain GIs product consistency and definition requirements. Understanding farmer preferences and incorporating them into the development of improvement of GIs’ certification schemes is thought to result in more internalized, and thus more efficient standards. This study aims to 1) investigate the small-scale farmers’ preferences and the influence of socio-economics characteristics rejecting GIs’ scheme; and 2) develop strategies to increase farmers participation on GIs’ scheme. Choice Experiment method and Conditional Logit Model (CLM) were used to estimate preferences of 157 small-scale coffee farmers for accepting GIs’ scheme. The findings suggest that premium price, coffee processing, technical assistance, and selling agreement are all GIs’ attributes that could increase small-scale farmers’ utility. More incentives are required to compensate farmers due to the loss of utility caused by pesticide bans and farm inspection. Based on CLM, the study found that farmers have clear preferences for and against certain aspects of GIs’ CoP scheme.
43
Sitorus, Riris Rotua, and Wimbildon Sihotang. "DETERMINAN KINERJA KEUANGAN DAN DAMPAK MODERASI STRATEGI BERSAING." Jurnal Akuntansi Manajerial (Managerial Accounting Journal) 2, no. 1 (July 1, 2017): 11–23. http://dx.doi.org/10.52447/jam.v2i1.912.
Full textAbstract:
This study was conducted to examine the effect of promotional costs and debt policy on financial performance with competitive strategy as moderating. Research was conducted on property and real estate companies listed on the Indonesian Stock Exchange. The independent variables of this research are the cost of sale by proxy log promotional costs and debt policy with proxy Debt To Equity Ratio (DER). The dependent variable of this research is financial performance calculated using Return On Equity (ROE) with a competitive strategy as moderating using proxies are cost leadership was measured by Utiliziation Asset Efficiency (AUE) and differentiation was measured using the Premium Price Capability (PPC). The samples used were 29 properties and real estate companies listed on the stock exchange during the period 2011-2015 and generate profits. This study was conducted descriptive and use multiple regression. The research proved that the fee did not significantly affect the Promotion of Financial Performance. Debt policy significantly affected financial performance. Moderation Cost Leadership Competitive Strategy and Competitive Differentiation Strategy significantly affected financial performance. Cost Leadership Competitive Strategy and Competitive Differentiation Strategy can not amplify the effect of the fee on the Promotion of Financial Performance. Competitive Cost Leadership strategy, were not able to moderate the influence of Debt Policy on Financial Performance. Differentiation Competitive Strategy was able to moderate the influence of Debt Policy on Financial Performance.
44
Nicholls, Sarah, and John L. Crompton. "The Impact of a Golf Course on Residential Property Values." Journal of Sport Management 21, no. 4 (October 2007): 555–70. http://dx.doi.org/10.1123/jsm.21.4.555.
Full textAbstract:
A large proportion of golf courses currently under construction are part of larger real-estate projects. The objective of this study was to identify the magnitude of the increase in property prices created by the golf course in one such amenity. A hedonic analysis was undertaken using a sample of 305 sales transactions in a golf course subdivision in College Station, Texas. For comparative purposes, the assessed valuations of these properties were used as an alternative dependent variable. The premiums on lots adjacent to the golf course were $61,074 and $45,759, based on sales prices and assessed valuations, respectively. These premiums represented 25.8% of the average sales price of the homes, and 19.2% of the average assessed value. Prices and assessed values were also found to decline significantly with distance to the country club (by $8–10 per foot from the entrance).
45
Nicholls, Sarah, and John Crompton. "A Comprehensive Review of the Evidence of the Impact of Surface Water Quality on Property Values." Sustainability 10, no. 2 (February 13, 2018): 500. http://dx.doi.org/10.3390/su10020500.
Full textAbstract:
The desirability of living on or close to water is reflected in sometimes substantial property price premiums. Water quality has an important influence on property prices, since it impacts a water body’s appearance, capacity to support wildlife, and recreational potential. As water quality continues to be altered by human use and activity, and in light of new threats posed by projected climate and associated environmental change, understanding the impact of changing quality on property prices, and the associated property tax base, is paramount. This paper reviews the body of evidence on this topic to date. Of the 43 distinct studies represented in the 48 publications reviewed, the expected, statistically significant relationship between water quality and property price was demonstrated in at least one of the models developed in all but two studies. As a whole, they provide convincing evidence that clean water has a positive effect on property values.
46
Alananga Sanga, Samwel. "The value of formal titles to land in residential property transactions." International Journal of Housing Markets and Analysis 11, no. 1 (February 5, 2018): 117–48. http://dx.doi.org/10.1108/ijhma-04-2017-0033.
Full textAbstract:
Purpose The purpose of this paper is to analyse the impact of title risks on property prices to establish the associated title risk-price premiums across property types and the moderating effect of occupation strategies for informal transactions. Design/methodology/approach Based on household survey data on transactions for 1,514 residential properties in Kinondoni Municipality, Tanzania, binomial logistic regression models were implemented to predict pre-purchase transaction risks. The results of which were used as inputs in mixed effect models to examine the effect of the predicted title risks on (2,010 constant) purchase price for three-bedrooms finished and unfinished housing units and 400 m2 plots. Findings Although legal titles have positive overall title risk-price premiums, such premiums hardly accrue from transactions involving finished houses and marginally accrue from vacant plots transactions. On average, unfinished housing purchasers are title risk-averse, “vacant plots” purchasers are title risk-neutral, while “finished housing” purchasers are title risk-lovers. Research limitations/implications The sample composition does not include developer-built housing units, the inclusion of which may sway results away from the observations of this study. Practical implications Titling alone can hardly be used as a property market stimuli (eliminate transaction risks) unless the market is dominated by unfinished houses. Originality/value Existing studies consider neither traded housing products nor pre-purchase transaction risks or consider only one of the two, thus leaving a gap in the literature for which this study sought to bridge. Researchers must incorporate both to arrive at a well-informed conclusion on the potential risks as well as prices achievable in each transaction.
47
Chen, Shuai, and Jiameng Yang. "Environmental Pollution Liability Insurance Pricing and the Solvency of Insurance Companies in China: Based on the Black–Scholes Model." International Journal of Environmental Research and Public Health 20, no. 2 (January 16, 2023): 1630. http://dx.doi.org/10.3390/ijerph20021630.
Full textAbstract:
Environmental pollution liability insurance is becoming increasingly important for China to achieve its emission reduction targets. Insurance pricing is a crucial factor restricting the market share of environment pollution liability insurance, from the perspective of the Black–Scholes pricing model, which in turn has influenced the solvency of insurance companies in China. Firstly, this study analyzes the problems existing in compulsory liability insurance for environmental pollution in China. It proceeds with analyzing the price of compulsory environmental pollution liability insurance using the Black–Scholes pricing model, and derives a high premium insurance rate of 2.44%. Moreover, it performs a multivariate regression analysis using the asset and liability data, taken from the annual report, to identify three key factors affecting the solvency adequacy ratio, namely, capital debt ratio, reflecting the company asset structure; net interest rate on assets, reflecting the asset scale with actual solvency; and claim ratio, reflecting the business quality. Based on the results of regression analysis and robustness test for the China Insurance Clauses (CIC) company, People’s Insurance Company of China (PICC), and Asia-Pacific Property & Casualty Insurance (API) company, it is shown that the effect of total asset, total debt, capital debt ratio, claim ratio, and net interest rate on assets on the solvency adequacy ratio is significant, with respect to the size of the coefficients. Based on the Black–Scholes pricing model found in the previous cycle of liability insurance, and keeping in view the existing problems of environmental pollution liability insurance expenditure, this paper presents suggestions that are conducive to improving the solvency of insurance companies in China.
48
Bhat, Ishfaq Hussain, and Dr Sapna Singh. "A study on branding of handicraft through Geographic indication with reference to Kashmir." International Journal of Business and Management Research 7, no. 3 (September 30, 2019): 14–17. http://dx.doi.org/10.37391/ijbmr.070301.
Full textAbstract:
Handicraft activities occupy an important position in the economic structure of J&K State. Being environment friendly, these activities are best suited to the state as they are more labour intensive and less capital intensive in nature, thus having scope for employment generation at a large scale. The Kashmir handicraft products have earned worldwide fame for their attractive designs, functional utility and high quality craftsmanship. However this sector has suffered a lot due to unorganized market Lack of skilled workers new technology and absence of brand image. So in order to improve the production and branding of handicraft Geographical Indication is needed. Geographical Indication (GI) identifies a good/product as originating in a particular region, where a particular quality of the good is attributable to its place of origin. GI will help Jammu and Kashmir producers differentiate the uniqueness of the products from similar competing products, establish brand and goodwill of local products, fetch premium price for such products, and increase sales/export by protecting reputation of the products. The essence of GIs is that specific geographic locations yield product qualities that cannot be replicated elsewhere. GI-registered product is produced using the GI technology. The purpose of this paper is to investigate the status of the geographical indication in the state of Jammu and Kashmir as well as its prospect. The state has so far brought six of its ethnic and region specific products under geographical indication. All of these products belong to only one product category i.e. Handicrafts. The state has huge panorama of using geographical indication for its unique and famous ethnic and region specific products. However, lack of knowledge about intellectual property rights is not giving proper value and recognition to the geographical indication in the state.
49
Rouaine, Zakaria, Mounir Jerry, and Ahlam Qafas. "Automobile Insurance: Analysis of the Impact of a Premium Change on the Behavior of Insured at the Time of Subscription and Termination." Journal of Business and Economics 10, no. 6 (June 20, 2019): 517–30. http://dx.doi.org/10.15341/jbe(2155-7950)/06.10.2019/003.
Full textAbstract:
the subscription of an insurance contract allows an individual to take precautions against the repercussions of hazards and fortuitous events affecting their person or property. In return for this insurance policy, the insured pays a contribution at the beginning of the coverage period, while the insurer may have to provide a service if a certain type of damage occurs during the period in question. While the insurance market acts both on the insured by being able to induce him to terminate his insurance contract, in the case of excessive prices to those of other insurers, and on the insurer by forcing him to a certain extent to make his insurance premiums tolerable. It therefore appears that the insurance premium risk threatens the competitiveness of insurers on the insurance market and the termination of policyholders at the end of the contract term. By choosing to work on automobile insurance market, which is becoming increasingly competitive, as precise premium pricing is a major challenge for each insurer. The aim of this work is to study the sensitivity of insured persons to positives changes in automobile insurance premiums at the end of the contract.
50
Miller, Norm G., Jeremy Gabe, and Michael Sklarz. "The Impact of Water front Location on Residential Home Values Considering Flood Risks." Journal of Sustainable Real Estate 11, no. 1 (January 2019): 84–107. http://dx.doi.org/10.22300/1949-8276.11.1.84.
Full textAbstract:
We confirm existing findings of significant premiums for waterfront proximity, more so for oceans, bays, and large lakes than rivers. We then expand research on housing price trends immediately before and after major storms in directly affected markets. Our findings support a consensus view that single-family home prices rebound quickly to prior macro trends after major storms, with little persistent negative impact on value. In addition, using elevation as a proxy for flood risks associated with sea level rise, we find inconsistent evidence that the market perceives flood risk and discounts property prices accordingly. The absence of a permanent market reaction may change as the market is exposed to increases in insurance premiums or other direct pricing of the risks. Our results suggest either a short-term horizon for buyers of coastal properties at risk, or a moral hazard problem whereby residential owners are dependent upon and subsidized by government and mispriced flood risk insurance premiums.