Average Transaction Price Research Articles

Zero‐price effect and consumer welfare: Evidence from online classified real estate service

AbstractWe test whether the tendency to overvalue a free service over a paid alternative may lead to inferior economic outcomes. We examine data from an online classified real estate service in Israel that allows private and commercial owners to offer their real estate properties for sale and lease under either free‐basic or paid‐premium listing categories. Estimation results indicate a zero‐price effect in owners’ choice of a listing category. Moreover, although the vast majority of owners opt for the free‐ad category, the paid‐premium category generates increased buyer demand, greater transaction price, and decreased time‐on‐market—adding up to an average net benefit of about 3.5%–3.8% of the average transaction price (equivalent to about $12K–$13K). Outcomes are robust to a series of identification and test‐design issues.

Wpływ pandemii COVID-19 na rynek wtórny nieruchomości. Studium przypadku

The topic of the paper is the analysis of the situation in the secondary real estate market in Krakow from 2017 to 2020. The research was conducted based on data obtained from the register of real estate prices and values. The results of the research helped detect changes occurring in the indicated years; the number of transactions in the housing market in the city oscillated around the value of 4,000 for each year. The high demand for real estate was significantly disrupted by 2020 and the outbreak of the COVID-19 pandemic. Despite an almost 50% drop in the number of transactions and reduced interest from potential buyers, the price of 1m2 of residential space rose steadily. Thus, the pandemic only affected the number of transactions, while no deceleration of the rising trend was observed in terms of the average transaction price or the average price per square meter.

A Study on the Correlation Between School District Housing Price and Birth Rate in Beijing and Kunming

In China, under the influence of traditional thinking, peoples enthusiasm for buying houses is constantly rising, and the real estate market has always been enthusiastically sought after in China. On this basis, with the development of the economy, it has slowly evolved into school district housing, central business district housing, new city housing and other room types. School district housing has become a hot topic of concern in the whole society. Some researchers believe that fluctuations in the freshman population affect school district housing prices, but there is still a lot of room for research on this view. Therefore, this paper analyzes the correlation between the new population and the housing prices of school districts in representative cities in China by collecting the data of Chinas new population in the past decade, as well as the highest transaction price and average annual transaction price of school districts in China. The study found no correlation between birth rates and house price levels. There is a positive correlation between the birth rate and the growth rate of house prices.

Down payment requirements and house prices: Quasi‐experiment evidence from Shanghai

AbstractUsing the regression discontinuity design, a quasi‐experiment approach, this paper establishes a causal relationship between the down payment requirement and house prices by exploiting a unique institutional background in Shanghai. In the unique setting, the required minimal down payment ratio jumps at the Inner Ring, a circular elevated highway, from 50% to 70% for a large group of buyers. With transaction level data from the largest real estate broker in Shanghai, we find that a lower required down payment ratio increases the apartment price by 138.8 thousand RMB, around 3.71% of the average transaction price.

Competition with list prices

Retail prices in stores are often lower than widely advertised list prices. We study the competitive role of such list prices in a homogeneous product duopoly where firms first set list prices before setting possibly reduced retail prices. Building on Varian (1980), we assume that some consumers observe no prices, some observe all prices, and some only observe the more salient list prices. We show that when the latter group chooses myopically, firms' ability to use list prices lowers average transaction prices. This effect is weakened when these consumers are rational. The possibility to use list prices facilitates collusion.

The Impact of Exchange Rate Fluctuation on Toyota Financial Performance and Its Hedging Strategy

In today's globalised economy, the majority of businesses operate in many nations, utilising foreign exchange for imports and exports to expose them to foreign exchange risk. Every business is more or less affected by foreign exchange risk, which is made up of transaction risk, translation risk, and economic risk. By analyzing Toyota's financial reports and comparing financial data of multiple fiscal years (2018 is the base year), including Toyota's derivatives trading volume, foreign exchange income, exchange rate fluctuations of Japanese yen relative to other major currencies, and the average transaction price of currency trading, this study studied the role of financial derivatives in Toyota's foreign exchange risk management. The research results show that Toyota's derivatives transactions in 2018, including forward foreign exchange future contracts and foreign exchange options, strongly offset the foreign exchange risk caused by the appreciation of the yen against the US dollar and the euro. In addition to the derivatives transactions, Toyota also used other risk management policies to reduce its foreign exchange risk. Although the use of financial derivatives can hedge risks, but it will also bring losses to the enterprise. In today's volatile global business environment, each enterprise must choose the appropriate risk management tools for it.

When do homeowners feel the same as renters? Housing price appreciation and subjective well-being in South Korea

Are homeowners happier if housing prices increase? While many studies have examined homeownership and subjective well-being, the effect of changes in local housing prices on subjective well-being has been less studied. We argue that a change in local housing prices has divergent effects on the subjective well-being of homeowners versus renters, and these effects vary with the housing market cycle. Using data on the annual change in the average transaction price for residential housing in local districts of Seoul, South Korea from 2008 to 2018, we find that homeowners have higher subjective well-being than renters, and the gap between homeowners and renters grows as housing prices increase, mainly because renters become less happy while homeowners' happiness varies with overall housing market conditions in their city. Homeowners' subjective well-being increases only when housing prices go up in their own neighborhood while the citywide housing market remains stable. During an escalating housing market, increasing prices make both homeowners and renters less happy.

Application of blockchain technology in autonomous electricity transaction and settlement at the end of distribution network

Abstract With the deepening of the concept of low-carbon environmental protection, the use of renewable energy in social production has become more and more popular. More and more consumers in the distribution network have begun to change their identities to become consumers with the continuous reform of the electricity sales side. Electricity trading and settlement methods in the electricity market directly affect the relevant income of market entities, so a fair and reasonable settlement mechanism is an important factor for the normal operation of the electricity market. Electricity trading refers to the buying and selling of electricity commodities and services, including electricity trading, auxiliary service trading, and transmission rights trading. With the expansion of the electricity market, how to deal with the deviation of electricity is also a difficult problem that requires electricity settlement. This paper aimed to study the application of blockchain technology in the autonomous electricity transaction and settlement at the end of the distribution network. It was expected to use the blockchain technology to set up related transaction mechanisms, provide new solutions for electricity transaction and settlement, and improve the efficiency and fairness of electricity settlement. Blockchain technology does not rely on additional third-party management agencies or hardware facilities, and there is no central control. Except for the self-contained blockchain itself, through distributed accounting and storage, each node realizes information self-verification, transmission and management. On the basis of sorting out the principles of electricity balance and electricity price formation, this paper proposed a contract decomposition method with a higher degree of fit, and revealed the settlement principle of deviation electricity in the electricity market environment. Aiming at the application scenario of blockchain in the energy Internet, an energy trading platform based on blockchain was designed, and the test results showed the feasibility of blockchain in electricity settlement scenarios. The experimental results of this paper showed that in the traditional electricity purchase fee settlement, the average transaction price is stable at 0.6 yuan/KWh. In the blockchain settlement process, the electricity purchase is 25 yuan when the electricity purchase is 50 KWh. Therefore, blockchain settlement is used more frequently in the market, and the profits are higher.

The Future of Quasi Emission Control Enterprises in a Low-Carbon Economy

At 9:30 a.m. on July 16, 2021, the national carbon emission trading market started operation at Shanghai Environment and Energy Exchange. On the first day, the carbon emission quota totaled 4.244 million tons, with a turnover of 210 million yuan and an average transaction price of 51.23 yuan/ton. The carbon trading price is on the rise. With the gradual maturity and improvement of conditions, there will be about 8,000 to 10,000 emission control enterprises under the eight major industries in the future, and China’s carbon market will become the largest market covering greenhouse gas emissions worldwide. It can be seen that carbon trading is a “big deal.” If enterprises participate well, they will form carbon assets, but if they do not participate well, they will form carbon liabilities. This paper analyzes the opportunities and challenges faced by quasi emission control enterprises under the background of low-carbon economy. This provides certain reference significance for these enterprises to actively participate in the national carbon trading market in the future.

Agricultural Land Transaction Prices Against the Background of Property Intended for Investment Purposes in Poland

Abstract Since Poland’s accession to the European Union in 2004, a steady increase in transaction prices of agricultural property has been observed. Also in other countries, mainly in Eastern and Central Europe, there has been an ongoing increase in the prices of agricultural land. The situation on the agricultural land market is influenced not only by the market mechanisms, but also by the political decisions, including restrictions in the turnover of land properties. The purpose of the study is to analyze the agricultural land market in Poland and to determine the relationship of average land prices for housing, service and industrial purposes against the average prices of agricultural land in 2004-2019. In the course of the study, price changes on the discussed market were assessed, and forecasts and simulations concerning the prices of agricultural properties and land intended for selected investment purposes were prepared. It was established that the increase in agricultural property prices over the recent dozen or so years is inadequate to the increase in the average gross salary in Poland and the average income from work at individual farms. However, the increase in prices is almost parallel to the increase in average transaction prices of property intended for housing purposes.

IMPACT OF THE COVID-19 PANDEMIC ON REAL ESTATE MARKET IN CRACOW

The purpose of this study was to determine the impact of the COVID-19 pandemic on the Cracow real estate market. The data used in the study included transactions of purchase of flats and single-family houses. At the initial stage, the database was reduced by applying a four-step selection and outliers were removed. The data analysis included separate transactions for single-family houses and flats, 5 different types of charts were prepared for each type of real estate. The conducted research concerned: the analysis of the number of transactions in subsequent years, the share of the number of transactions in individual quarters, average transaction prices (for houses) or average prices per square meter (for flats), analysis of the number of transactions in individual districts, years and quarters, and a comparison of the number of contracts in individual quarters given years. The main conclusion drawn from the study is the significant impact of COVID-19 on the number of house and apartment purchase transactions, while the pandemic did not have a significant impact on the average prices in the analysed database.

지역 하위시장의 아파트 가격 특성 분석: 부산시 수영구 사례를 중심으로

This study examines the factors and characteristics that affect the actual transaction price of apartments in Mangmi-dong and Namcheon-dong which are administrative dongs within the same autonomous district, which are sub-markets of real estate in Busan by region and We want to check how it appears and the difference between branded and non-branded apartments. and additionally check whether there is a price difference between the upper apartment and the lower apartment above the average actual transaction price in the same autonomous district. As a result of the analysis, the ratio of branded apartments to the factors that form high apartment prices in the actual transaction price for each regional submarket is slightly different. The result that the brand value was not significantly reflected in the apartment price compared to the complex or location characteristics on the regional sub-market was derived. First, small apartments of old construction appear low apartment appear high apartment prices in Mangmi-dong. Second, because of high expectation and the possibility of new brand apartments after reconstruction brand apartment preference is clearly visible Namcheon-dong. When examining the price in the price ceiling system, it is needed to review brand value ratio and to devise additional improvement measures.

Transport Accessibility in a Suburban Zone and Its Influence on the Local Real Estate Market: A Case Study of the Olsztyn Functional Urban Area (Poland)

The development of real estate markets in the vicinity of cities is linked with suburbanization processes. The migration of the population to suburban areas contributes to the growth of the residential property market (houses, apartments and construction plots). To minimize commuting costs, property buyers opt for locations that are situated close to the urban core. This article analyzes construction plots on the local real estate market in the Olsztyn Functional Urban Area, in terms of their temporal accessibility and demographic changes. Spatial variations in population distribution were analyzed with the use of the Gini index and geostatistical interpolation techniques. Spearman’s rank correlation coefficient was calculated to determine the relationships between the analyzed variables. The study revealed differences in the spatial distribution of the population and real estate transactions as well as strong correlations between average transaction price, number of transactions, commuting time and population. The highest number of transactions were observed in cadastral districts situated in the direct vicinity of Olsztyn’s administrative boundaries and the major transportation routes due to their high temporal accessibility.

Research on Prediction of Photovoltaic Building Integrated Plate Index Based on Mobile Average Model

In order to predict the future development trend of photovoltaic building integration plate, this paper studies the index of photovoltaic building integration plate. Firstly, the weight factors of 37 enterprises are calculated by using the total turnover, and then the corresponding sector indices are calculated by using the closing price and the average turnover price respectively. Secondly, the 5-day, 10-day and 20-day moving average models of the plate are obtained by using the obtained plate index. Finally, by comparison, the average transaction price with an average error of only 1.52% is set as the plate index of this plate, and a plate index calculation model based on the moving average model is proposed, in order to provide reference for relevant personnel.

The Influence of Public Facilities on the Transaction Price of Multi-Family Residential in Xitun District

The ratio of public area in Taiwan's multi-family residential is gradually increasing, and the items of public facilities are becoming more and more diversified. Most researches only classify them, however, it is rarely discussed how the connotation and diversity of public facilities affect residential transaction prices? This study intends to classify the public facilities in 22 multi-families residential near the Zhongke Shopping Plaza in Xitun District, Taichung City and give them diversity scores. The study uses hierarchical linear model for analysis, residential price as the dependent variable, diversity of public facilities scores as the independent variable of group-level, and public area, private area, age and floor as independent variables of individual-level. The empirical results found that floor, public area, and private area have positive and significant influence on residential transaction prices; when controlling the influence of individual-level explanatory variables on residential transaction prices, the diversity of public facilities at the group-level has a positive effect on the average residential transaction price of residential buildings.

The Functioning of the Real Estate Market: Dynamics of Price Formation and the Sale of Apartments

Purpose: The aim of this publication is to analyse how the dynamics of apartments’ price formation correlates with the development of the apartment market. Design/Methodology/Approach: We analysed data about real estate markets of Polish communes located in Central Pomerania. The values of the analysed indicators were calculated using Excel program and the results were presented in the form of Tables and Figures in Microsoft Excel and ArcMap. Findings: This publication focuses on issues related to price formation on the housing market with the objective to illustrate a correlation between the dynamics of price formation of apartments and the development of the apartment market. This study concentrates on the pricing behaviour of transactions in the primary and secondary real estate markets of apartments. Research results indicate that there is a relationship between the dynamics of price formation and the development of the apartment market in both the primary and secondary markets. The hypotheses have been positively verified. The analysis of the obtained data does not indicate the same tendencies in the transaction prices of the apartment properties in the researched seaside communes in the years 2014-2018. Practical Implications: The most important practical implication is that the analyzed seaside areas still have a large investment space for newer, more expensive and larger apartments. Originality/Value: Research analysis of the two markets shows that the primary market is characterised by a much greater volatility of the average transaction price per sqm of apartment’s usable floor area, while the secondary market is much more stable in terms of the average transaction price. There is also a very large variation in the average price per sqm between the surveyed municipalities.

Neighborhood Walkability and Housing Prices: A Correlation Study

This study aims to examine the relationship between the level of walkability and housing prices in Seoul, Korea. The average transaction price per square meter for each apartment complex was set as a dependent variable and the walkability score was used as an independent variable. This study divided a total of 5986 apartment complexes into areas with high and low housing prices for analysis. Based on the strong spatial autocorrelations of housing prices, this study employed spatial regression models in addition to the Ordinary Least Squares (OLS) model. Results showed that housing prices positively correlated with the walkability score in areas with low housing prices, whereas no significant association was observed in areas with high housing prices. Additional findings showed that housing prices were associated with building age (−), number of households in the complex (+), slope (−), and greenness (+) in both subsamples. Results also showed that high school quality had a different association with housing prices depending on the subsample (e.g., the sign was positive in areas with high housing prices and no significance in areas with low housing prices). The results herein support public policy proposals relevant to urban planning, environmental design, and housing policies.

Price volatility spillovers between supply chain and innovation of financial pledges in China

This study investigates the price volatility spillover of commodities in China using the Granger causality test and the variable structure Copula model, by employing data covering the daily average transaction prices of silver, copper, aluminum, rebar, and fuel oil from 2009 to 2017. The results show that the causal direction of price volatility spillover is uncertain, and that the impact from the correlation coefficients of copper and aluminum is the highest. Hence, there is a clear long-run price volatility spillover between silver and fuel oil as well as between silver and aluminum. Macroeconomic influences on different combinations of commodities present similar changing structure points, such as the debt crisis in Europe, the reduction of the quantitative easing monetary policy proposed by the U.S. Federal Reserve, and the promotion of RMB internationalization. Overall, our findings provide a theoretical reference for commercial banks to make full use of the volatility spillover effect between commodity pledges and their combinations, in order to achieve the goal of avoiding any price volatility risk.

Research on price forecasting method of China's carbon trading market based on PSO-RBF algorithm

ABSTRACTThe forecasting of carbon emissions trading market price is the basis for improving risk management in the carbon trading market and strengthening the enthusiasm of market participants. This paper will apply machine learning methods to forecast the price of China's carbon trading market. First, the daily average transaction prices of the carbon trading market in Hubei and Shenzhen are collected, and these data are preprocessed by PCAF approach to choose the input variables. Second, a prediction model based on Radical Basis Function (RBF) neural network is established and the parameters of the neural network are optimized by Particle Swarm Optimization (PSO). Finally, the PSO-RBF model is validated by the actual data and proved that the PSO-RBF model has better prediction effect than BP and RBF neural network in China's carbon prices prediction. It is indicated that the prediction model has more significant applicability and deserves further popularization.

Changes in Housing Availability Indicator in Selected Polish Cities in the Years 2006 to 2018

Abstract Research purpose. Housing availability indicator shows the area of residential real estate possible to purchase for the average monthly wage in the enterprise sector. The research carried out in this paper is aimed at determining the current level of housing availability indicator and its detailed analysis, taking into account the dynamics of changes in 2006 to 2018. This analysis will be carried out for primary and secondary market for selected Polish cities. Design/Methodology/Approach. Calculations were based on the average transaction prices obtained from the transactional database of residential real estate of the National Bank of Poland and the value of the average monthly remuneration in the enterprise sector obtained partly from statistical data and official journals of the Central Statistical Office. Findings. The analysis shows that the indicator of housing availability in Poland, despite the visible upward trend, is at a very low level, placing Warsaw at the first place. In addition, the extension of the analysis to the division of the housing market into the primary and secondary market provided more information about shaping the housing availability indicator. Whereas in the primary market in individual cities its value was at a similar level, the secondary market was subject to greater fluctuations. Originality/Value/Practical implications. This paper is of practical nature. Due to the asymmetry of information on the Polish real estate market, especially regarding housing prices, knowledge about the value of the housing availability indicator in Poland may be exceptionally valuable, especially for people interested in the housing market, including individual investors and market practitioners, as an auxiliary source of information in purchasing decisions of households.