Apartment Sales Research Articles

Hedonic pricing and different urban green space types and sizes: Insights into the discussion on valuing ecosystem services

In order to differentiate the potential key benefits associated with different urban green spaces, we divided green spaces into nine categories, depending on their type and size. Additionally, we used the percentage of green space in a 500m radius to represent the general ambient condition. Our sample consists of 9346 apartment sales' transactions that took place in Lodz, Poland in 2011–2013. The stepwise regression reduced the number of variables from the initial 48 to 24 in the standard model, and to 26 in the fixed effects model (considering the effects of different districts). The impacts of various green space categories were consistent in both models: the largest forest and large parks were the most important and, together with small forests and the percentage of green space in a 500m radius, positively influenced apartment prices. Cemeteries had a negative impact on apartment prices. Our results show that people do value nature, but unfortunately we cannot determine for which specific reasons. Hedonic pricing seems to be too general for that purpose, in that it only depicts the impacts of the best-known green spaces and the general ambient condition. In this way, our findings contribute to the broader discussion on applying hedonic pricing to the valuation of ecosystem services.

Does crime in parks affect apartment prices?

A park is a desirable feature when people are purchasing a property. Buyers are ready to pay more for properties surrounded by natural amenities, such as a pleasant park. However, if a park is targeted by crime and disorder, then it may have a negative effect on people's appraisal. The aim of this study is to reach a better understanding of how parks and crime rates affect housing prices taking into account residential properties and parks type. Stockholm, the capital of Sweden, is used as the case study. The methodology has two stages. An extensive field work was performed in a selected number of parks to help characterize the parks in Stockholm. This information was gathered with secondary data about parks using Geographic Information System. This pre-assessment was later followed by the analysis of 2008s apartment sales using hedonic modelling to assess the effect of parks alone and in combination with crime rates. Results suggest that the effect of parks on prices vary by park type (increased with, e.g. features of cultural and national interest and decreased with ball games or boating facilities) while an aggregated measure of parks lowers overall apartment prices. More interestingly, findings show that the price of apartments tends to be discounted in areas where parks have relatively high rates of violence and vandalism.

Mapping of Real Estate Prices Using Data Mining Techniques

The paper describes an innovative software that is used for real estate evaluation and mapping and analyzing of real estate advertisements published on the internet in the Czech Republic. The software systematically collects, analyzes and assesses data about the changes in the real estate market. For each half year, the software assembles over 650,000 price quotations concerning sale or rental of apartments, houses, business properties and building lots. All real estate advertisements are continuously stored in a software database and are thoroughly analyzed for their credibility.There have been numerous articles concerning real estate market analysis in both mass media and scholarly publications. Unfortunately, not all presented information is objective and unbiased. Many cases by “independent specialists” have stated information with no verified research. We have witnessed manipulation of information by lobbies (such as banks offering mortgage agents, real estate companies and agents, building companies, developers, majority owners, etc.). The author of this paper offers objective and unbiased evaluation of price development in real estate market. The author brings forward information based on extensive research and large amounts of statistical data which has been collected continuously from year 2007 until today.

Spatial econometrics and the hedonic pricing model: what about the temporal dimension?

Recent ready access to free software and toolbox applications is directly impacting spatial econometric modelling when working with geolocated data. Spatial econometric models are valuable tools for taking into account the possible latent structure of the price determination process and ensuring that the coefficients estimated are unbiased and efficient. However, mechanical applications can potentially bias estimated coefficients if spatial data is pooled over time because the applications consider the spatial dimension alone. Spatial models neglect the fact that data (e.g. real estate) may consist of a collection of spatial data pooled over time, and that time relations generate a unidirectional effect as opposed to the multidirectional effect associated with spatial relations. Through an empirical case study, this paper addresses the possible bias in spatial autoregressive estimated parameters when data consist of spatial layers pooled over time. An empirical study is made using apartment sales in Paris between 1990 and 2001. Estimation results and out-of-sample predictions confirm, at least for this case, the hypothesis that ignoring the time dimension and applying spatial econometric tools generate divergence among the estimated autoregressive coefficients, which can potentially engender other serious problems.

THE EFFECT OF COMMUNITY LIFESTYLE IN DECIDING TO CHOOSE DIPARANU RUCITRA APARTMENT

Property growth of 12% - 20% throughout the year 2012. In Surabaya, the growth the property can reach above 15%. But the lack of residential land in Surabaya, the property developers began to turn to the concept of vertical housing, one of which was an apartment. The development of apartments in Surabaya is inseparable from economic development and people's lifestyles. The public interest in the apartments is very high. The level of the average apartment sales had reached about 80-90 percent. However, the occupancy rate of apartments in Surabaya on average is still below 50 percent. Diparanu Rucitra apartments (DR Apartemen), is the first middle-class apartments that sell an apartment complete with furniture. This research is a quantitative study with a cross-tabulation method. The study aims to explain the relationship between the phenomenon of lifestyle apartments with the decision to choose DR Apartemen. Cross-tabulation method to look for similarities and differences in lifestyle of the owners / tenants who inhabit the owner who does not occupy DR Apartemen. The survey results revealed that there is influence people's lifestyles in the decision to choose either the residential DR Apartemen or as an investment asset. There are some differences and similarities that people's lifestyles in terms of the approach to activities, interests and opinions.

Using Forecasts in Developers Investing Activities

Abstract The number of future sales of residential real estate in the primary developer depends mainly on the factor of demand, consumer needs for housing in established market conditions. One way to determine the future market capacity for the construction of residential demand forecasts. The company is in a very favorable position, having a reliable forecast of future demand. Forecast has an impact on the ability to achieve the intended purpose of building and as a result allows you to minimize the risk of return on invested capital at the same time ensuring a profit. Placed forecast future sales of apartments in the time horizon of two years in advance, taking into account a series of standardized construction, contains processed numerical data on a quarterly sale by X developer in the years from 2008 to 2012. Erected on the basis of forecast model and found very useful model to predict seasonal fluctuations in demand numerical sale in the test development company.

경인아라뱃길이 지역 부동산 가격에 미친 영향 분석

The purpose of this research is to evaluate the scenic value of the Gyungin Ara waterway in real estate prices. Apart from the multi-functionality such as transportation of passengers and freight, prevention of floods, and provision of leisure areas, the Ara waterway possesses a scenic function which offers people esthetic value through unique and beautiful scenery. This scenic function is an externality for apartment residents living nearby. The applied methodology for this research is the Hedonic Price Model (HPM) which creates a cause and effect model between real estate prices and attributes. Variables such as apartment sale prices, complex characteristics, location characteristics, timely characteristics have been deduced through data collected from a total of 4,207 households that have experienced actual transactions during the same period, all located within the scenic benefit boundaries of the waterway. Landscape variable has been derived from algorithm designed by a combination of digital map and Google Mapview. The scenic value of the waterway estimated through the application of HPM on these variables is 165,000 Won per area (pyeong). The regional asset enhancing effect caused by the landscape view of the waterway is estimated to be 89.1 billion won.

Analysis of Impact Factors on the Real Estate Market: Case Slovenia

The real estate market is very important for every country, not merely because it ensures construction structures and infrastructure necessary for life and work, but also because it has a strong, multiple impact on the development of nation’s entire economy. Real estate market trends are strong indicator of trends in the entire economy.Trends on the real estate markets have changed notably in recent years. As early as two years ago, the main characteristics of these real estate markets were domination of demand over offer, quick sales of apartments and a lack of “choosiness” on the part of buyers, all of which was accompanied by rising real estate prices, which has not abated in nearly two decades. Over the past two years, the conditions have changed notably: transactions are few, offer is dominating over demand, buyers are choosy, while apartment prices are falling.In the past, little attention has been paid to the problems we are about to study. Some researches have been conducted; however, none were developed so as to be applicable to the entire territory of Slovenia. For the very facts stated above, we decided to study and present the impact factors on the Slovenian real estate market using a practical example.The answers obtained through a structured survey questionnaire give rise to several questions. One of these questions is also what the primary factors are and how to form the best selection thereof. To determine them, it was our task to monitor the key factors. We obtained some of the information from past research and put them into the time context. Determining the goals and strategies, we elaborated a plan of the system for establishing the factors, and monitored the volatility of the selected indicators.Included into the research were also investors, real estate owners, tenancy right holders, real estate users, administrators, managers, tenants, real estate agencies and companies, design and construction companies, as well as other individuals across Slovenia, with varying durations of work experience and varying education levels.With the research that follows, we wanted to present the factors which most affect the real estate prices on theSlovenian real estate market, resulting in their rise or fall respectively.The role, significance and usage of the assessed parameters on the real estate market are important for efficient operation of construction company. There is a growing interest for modifying and determining the causes of the assessed parameters. Knowledge of conditions on the real estate market is extremely important for efficient and successful operation of an organisation. An analysis of the real estate market and the operation of construction companies represent a starting point for revamping it.The goal of the research is to define the factors that must be taken into account for an analytical forecast of future trends in the fluctuation of real estate prices. We have established that the main group of impact factors is associated with economic growth, interest rates, construction quality, speed of real estate sales and accessibility of funding sources. DOI: http://dx.doi.org/10.5755/j01.ee.23.4.2566

Contamination by the Israeli military industry and its impact on apartment sale prices in an adjacent Tel Aviv neighborhood: a hedonic pricing model study

This study quantifies the effect of environmental degradation due to contamination from Taas Magen, an Israeli Defense Force industrial facility, on the nearby housing market. A model was constructed so as to isolate the impact of the contamination from that of the facility itself by incorporating information regarding public awareness of the contamination. The resulting regression analysis suggests that distance from the site of the facility affected home prices only after the general public became aware of the contamination. Therefore, it is specifically the environmental contamination, rather than the facility as of itself, that negatively impacted prices.As a result of the contamination, apartment prices fell by an average of $24,665 (2006 dollars), equal to approximately 14% of the sales price of an average apartment in the sample area. Total losses to the surrounding housing market are accordingly estimated at between $267 and $287 million. These loss estimates serve as a lower bound for the total social and economic costs incurred by the greater community due to the contamination, which are estimated to total at least $358 million.Assuming the government were to fund the estimated $33 million cleanup costs, a minimum gain of 1.5% in sale prices within this $2.2 billion housing market would create the necessary economic benefit to offset the cost of decontaminating the site. Similarly, a more technologically advanced, yet expensive, remediation process would require a gain of 10.1% in housing market prices to offset its costs. Ultimately, reclaiming a lost aquifer, reduction in human health risks, restoration of environmental integrity, and further increases in housing market value are all benefits of remediation that may greatly outweigh the required cleanup costs.

The impact of crime on apartment prices: evidence from stockholm, sweden

.This study uses data of about 9,000 apartment sales in Stockholm, Sweden, to assess the impact of crime on property prices. The study employs hedonic pricing modelling to estimate the impact of crime controlling for other factors (property and neighbourhood characteristics). Geographic Information System (GIS) is used to combine apartment sales by coordinates with offences, land use characteristics and demographic data of the population. The novelty of this research is threefold. First, it explores a set of land use attributes created by spatial techniques in GIS in combination with detailed geographical data in hedonic pricing modelling. Second, the effect of crime in neighbouring zones at one place can be measured by incorporating spatial lagged variables of offence rates into the model. Third, the study provides evidence of the impact of crime on housing prices in a capital city of a traditional welfare state, information otherwise lacking in the international literature. Our results indicate that apartment prices in a specific area are strongly affected by crime in its neighbouring zones, regardless of crime type. When offences were broken down by types, residential burglary, theft, vandalism, assault and robbery individually had a significant negative effect on property values. However, for residential burglary such an effect is not homogenous across space, and apartment prices in central areas are often less discounted by being exposed to crime than those in the city's outskirts.

Measuring the perceived performance of a residential development

PurposeThe purpose of this paper is to investigate whether residential buyers' beliefs about the built environment in a specific place influence their willingness to buy in a large‐scale real‐estate development (RED) by developing and testing a new attitude scale.Design/methodology/approachThe empirical study is carried out in two phases. The first phase is a qualitative laddering study to capture the beliefs of potential buyers visiting open sales of apartments on sale in the RED of Frösunda, Sweden. In the second phase, a multivariate analysis is carried out to identify and measure factors that have an influence on their willingness to buy.FindingsFive factors are found that describe buyers' beliefs about the built environment: urban environment, architecture, relaxation, safety and liveliness. Buyers' and non‐buyers' attitudes towards these factors vary depending on the characteristics of the built environment. The means‐end chain model and laddering technique proves useful in eliciting beliefs that describe how a particular place is perceived by potential buyers.Research limitations/implicationsThese findings stem from one case study and a retest should be made using an independent sample to assess the generalisation of the scale.Originality/valueThis paper demonstrates novel research using the laddering technique, how real‐estate buyers' attitudes and their evaluation of performance of the built environment vary depending on location. Practitioners will have a new tool for RED, if the RED scale proves to be broadly applicable to access real‐estate buyers' evaluation of the performance of a residential development.

Area-to-point Kriging in spatial hedonic pricing models

This paper proposes a geostatistical hedonic price model in which the effects of location on house values are explicitly modeled. The proposed geostatistical approach, namely area-to-point Kriging with External Drift (A2PKED), can take into account spatial dependence and spatial heteroskedasticity, if they exist. Furthermore, this approach has significant implications in situations where exhaustive area-averaged housing price data are available in addition to a subset of individual housing price data. In the case study, we demonstrate that A2PKED substantially improves the quality of predictions using apartment sale transaction records that occurred in Seoul, South Korea, during 2003. The improvement is illustrated via a comparative analysis, where predicted values obtained from different models, including two traditional regression-based hedonic models and a point-support geostatistical model, are compared to those obtained from the A2PKED model.

The Economies of Elegance Migrating Coastlines: Residential Tower, Dubai

AbstractAli Rahim and Hina Jamelle of Contemporary Architecture Practice describe how they have been able to design distinct features into their residential tower in Dubai that imbue its complex architecture with a rich aesthetic sensibility. Their skilful use of the digital algorithm has enabled them not only to develop interrelated models that allow for the collaboration of different industries, but also to deliver elegance to a construction budget. It is a design strategy that has further assisted in the development and implementation of innovative marketing techniques for the sale of individual apartments. Copyright © 2007 John Wiley & Sons, Ltd.

A Study on the Current State of Cyber Apartment Construction and the Desirable Development Course of Cyber Apartment in Korea

The purposes of this paper are to analyze the current state of cyber apartment construction in the allied industries and to seek a desirable development course of cyber apartments. Through this study, the author intends to compare five cyber apartment consortiums currently being operated and relevant cases of apartment sales, and to contribute to establishing desirable Korean-style cyber apartment model by suggesting a development course. By analyzing the construction of the five cyber apartment consortiums, which are iCitiro, CVNet, ezVille, Techno Village and Joy&Life, I identified the service contents such as house maintenance, cyber community, electronic commerce and home automation, and investigated four relevant cases of apartment sales. A cyber apartment should be a concept of convenient residence resulting from the improvement of information and telecommunication technology and high-tech electric home appliances as well as an essential element for pleasant life. For the purpose, it is required to improve the quality of our life by establishing a standard model of Korean-style cyber apartment suitable for our environment and to prepare an advanced solution through which all the people are able to adapt themselves to the information society. In addition, policies such as subsidy payment, cyber function installation and information education should be prepared to resolve the digital divide between the possible beneficiaries of information and the lower income bracket who are unable to share the benefit of information society or residents at traditional houses that are not equipped with the functions of cyber apartments. On the other hand, rather than establishing a new cyber apartment consortium, constructors not joining cyber apartment consortium and companies concerned with telecommunication and contents should be led actively to join the five existing consortiums, so that they may benefit from the economy of scale. Furthermore, it is considered necessary to ease competition among the existing consortiums for preventing redundant investment.

The Relationship between Foreclosure Status and Apartment Price

Empirical studies disclose that foreclosed residential properties sell at a discount from the expected market price for non-foreclosed residences. This investigation shows that prior findings on residential properties can be extended to include income-producing properties. In addition, it employs market rent to control for variation in property quality. An analysis of apartment sales in Phoenix, Arizona, demonstrates that foreclosure-status apartments sell at a 22% discount when compared to non-foreclosure apartment sales. The rationale for accepting discounted prices may be atypical seller motivations such as a need to satisfy regulatory capital requirements, to mitigate negative stock price effects, or to protect credit ratings.

A Digest of Recent Israeli Cases

This was an Additional Hearing granted by leave of the President of the Supreme Court for the purpose of considering the incidence, ratione personae, of the good faith requirement established under sec. 12 of the Contracts (General Part) Law, 1973. The significance of the decision lay in the question of the liability of agents and company directors who negotiate contracts to which they are not themselves party. In particular, the Court was called upon to consider whether, on the basis of sec. 12, a company director negotiating a contract solely on the company's behalf could be held personally liable in relation to that contract, or whether he could seek refuge behind the corporate veil.The respondent, David Castro (hereafter: the Purchaser), had negotiated with Yosef Pnini (hereafter: the Appellant) for the purchase of an apartment to be built by Pnidar, Development and Building Investments Company, Ltd. (hereafter: the Company). The Appellant was manager of the Company, and he and his wife were the sole stockholders. The Appellant and the Purchaser signed a standard-form preliminary agreement which the Company used for the sale of apartments in buildings that it constructed, and the Purchaser made all payments due for the purchase of the apartment. During the course of negotiations it was not revealed to the Purchaser that neither the Company nor the Appellant owned the property upon which the apartment was to be constructed.

A Digest of Recent Israeli Cases

This was an Additional Hearing granted by leave of the President of the Supreme Court for the purpose of considering the incidence, ratione personae , of the good faith requirement established under sec. 12 of the Contracts (General Part) Law, 1973. The significance of the decision lay in the question of the liability of agents and company directors who negotiate contracts to which they are not themselves party. In particular, the Court was called upon to consider whether, on the basis of sec. 12, a company director negotiating a contract solely on the company's behalf could be held personally liable in relation to that contract, or whether he could seek refuge behind the corporate veil. The respondent, David Castro (hereafter: the Purchaser), had negotiated with Yosef Pnini (hereafter: the Appellant) for the purchase of an apartment to be built by Pnidar, Development and Building Investments Company, Ltd. (hereafter: the Company). The Appellant was manager of the Company, and he and his wife were the sole stockholders. The Appellant and the Purchaser signed a standard-form preliminary agreement which the Company used for the sale of apartments in buildings that it constructed, and the Purchaser made all payments due for the purchase of the apartment. During the course of negotiations it was not revealed to the Purchaser that neither the Company nor the Appellant owned the property upon which the apartment was to be constructed.