Abstract
Shopping malls, as an important type of commercial facilities, are growing dramatically. They have gradually become one of the most dominant factors that can influence people's daily life as well as a city's economic development. People's willingness to pay for dwellings is also primarily associated with the surrounding commercial layout. Hence, it is of interest to find out more from a quantitative perspective on the relationship between shopping malls and housing prices. This study aims to analyze how the prices of condominiums will be affected by the proximity of shopping malls. Two aspects are considered and examined in the empirical study, namely a proximity to the shopping mall, and the number of shopping malls within 3 kilometers radius. We try to examine if there is any price premium for those apartments near the shopping mall or with more shopping malls in the neighborhood. In this empirical study, 36 shopping malls in different locations in the county of Stockholm, Sweden, is utilized. The sample of transactions consists of 336,914 apartments. By using regression analysis, based on the traditional hedonic model, the results show that there is an inverse relationship between the apartment prices and its distance from the shopping mall while the number of shopping malls is positively correlated with apartment prices. However, the impact has declined over time.
Highlights
The term shopping mall refers to one or more buildings composed of a complex of shops or other facilities
The impact of shopping malls on surrounding property values was examined by Des Rosiers et al (1996), which mainly focused on proximity and the secondary effects
The results indicated a positive relationship between the size of a shopping mall and residential housing prices
Summary
The term shopping mall refers to one or more buildings composed of a complex of shops or other facilities. There are only limited studies on how the externalities of a shopping mall would influence the nearby housing market Researchers have found both positive and negative effects of proximity to a shopping mall The impact of shopping malls on surrounding property values was examined by Des Rosiers et al (1996), which mainly focused on proximity and the secondary effects. Zhang et al (2019) analyse the capitalisation rate of shopping malls in property values in Hangzhou, China, between the period 2011–2015 They investigated the effect before construction, during construction and after the mall had opened. In a recently published article by Kurvinen and Wiley (2019), they analyse the impact of a newly established retail development on housing values.
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