Abstract
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.
Highlights
With urban development and the improvement of residents’ living quality, urban management becomes increasingly important
We use housing prices to measure real estate value, and use two indicators to measure service quality respectively, which are the property management fee [9] and whether the service is provided by top-tier companies [10]
Based on the conceptual framework, we use housing prices to measure real estate value, and use two indicators to measure service quality respectively, which are the property management fee [9], and whether the service is provided by top-tier companies [10]
Summary
With urban development and the improvement of residents’ living quality, urban management becomes increasingly important. Urban management is a rich connotation of the concept, including basic public services, public safety management, land-use management, property services and so on. Good urban management can increase real estate value. Many scholars have found that basic public services (such as transportation, parks, etc.) have a premium in real estate value. Du et al [1] used statistical methods to analyze the price of houses near a subway station in Sunderland, England, and argued that the rail transit system has an impact on the value of land in the short term. Cervero et al [2] pointed out that the rapid transit system (BRT) affects land use and land value, which increases the price of land. Kong et al [3] found that neighboring parks will make the land price premium
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