Abstract
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.
Highlights
According to hedonic pricing theory, residential property value is based on the spatial mapping of the distribution of various facilities and the resources around the urban dwelling spaces [1,2]
Assuming that home buyers are willing to pay more for residential properties that have access to HOPSCA, we explored the effects of HOPSCA on residential properties
The business-oriented HOPSCA had a negative effect on property values (−2.4%). (2) Significant spatial differences were observed in the effects of HOPSCA on the residential property values
Summary
According to hedonic pricing theory, residential property value is based on the spatial mapping of the distribution of various facilities and the resources around the urban dwelling spaces [1,2]. With the improvement of people’ s living conditions, more research has increasingly turned to reveal the effects of specific urban resources, such as open spaces; green spaces [11,12,13,14,15]; and landscapes, such as, lake views and river views [16,17,18], on housing prices. Housing prices indicate the willingness of residents to pay for those facilities and resources when purchasing residential properties. Integrating a variety of functions, including commerce, office, residential, and leisure, into a compact urban space, HOPSCA exhibits considerable advantages in creating a vibrant and efficient living space for urban residents [20,22]. It merits mentioning that China’s previous hedonic pricing studies have not considered this factor
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