Abstract
This article attempts to use spatial maps as a way of presenting additional information about the phenomena occurring in the housing market. In our opinion, spatial maps may facilitate understanding and provide more detailed information, which undoubtedly should increase the transparency of the housing market. The study used 12,219 transactions of apartments in Poznań in the years 2013–2017. General principles of price visualization activity and housing market dynamics were established in this study. The map of prices may reflect the location values determined by the quality of the urban infrastructure, distance from specific locations, and environmental factors. Market activity maps reveal areas where the market is dynamically developing, while information on trends in the number of transactions and price changes may demonstrate the growing or declining attractiveness of areas. The research is based on a model of hedonic regression in the form of ordinary least squares (OLS), quantile regression (QR), and geographically weighted regression (GWR). The maps presented should increase the transparency of the residential market (e.g., by providing more detailed information). However, one should bear in mind the limitations in the use of these methods resulting from a small number of transactions in a thin market.
Highlights
The residential market in 2015 accounted for as much as 75% of the value of the real estate market and 44% of the value of the world’s significant assets [1]
When preparing the price map of residential units, it should be taken into account that the real estate market is extremely complex, and transactions involve objects that differ in location and in features that are not spatial in nature
The problem of price differentiation can be solved by adjusting transactional prices in such a way that they refer to a model property with some unambiguous, predetermined characteristics [35]
Summary
The residential market in 2015 accounted for as much as 75% of the value of the real estate market and 44% of the value of the world’s significant assets [1]. The housing market is undoubtedly the most crucial segment of the real estate market, which is a result of the fact that, among other things, housing is a good that stands out from other goods produced and consumed by humans. It satisfies a basic need, which is shelter. Considering the above, as well as the imperfection of the housing market, investment decisions of households are made in conditions of lack of access to full information
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