Residential Property Research Articles

Assessment of the Spatial Variation of the Economic Benefits of Urban Green Spaces in a Highly Urbanized Area

Urban green spaces play a vital role in improving the quality of life and well-being of urban residents. However, their economic benefits in different spatial contexts within highly urbanized areas remain a critical yet understudied topic. This study delves into the economic value of urban green spaces in Cheongju City, Republic of Korea, and investigates the distance-decay features associated with the proximity of green spaces to residential properties. Two spatial econometric models were employed to address these questions: the spatially autoregressive (SAR) model and the generalized additive model (GAM). The SAR model was used to assess the economic benefits of urban green spaces, whereas the distance decay of these benefits was examined with the GAM. Empirical analyses revealed that small-sized parks or forests under 20 ha hold greater economic value when in proximity to residential areas compared to medium-sized parks or forests between 20 and 200 ha. Conversely, large parks or forests over 200 ha appeared to have a disamenity effect, negatively impacting property prices when in close proximity. The GAM’s smooth functions illustrated that the distance-decay effect was shorter for small-sized green spaces and exhibited an inverted U-shape for large-sized ones, resulting in a negative benefit of proximity. Our findings suggest that urban green spaces have a positive impact on property prices, but this effect may not apply uniformly to large-sized parks or forests. Therefore, to enhance the residents’ welfare, green infrastructure policies should prioritize the provision of accessible small- and/or medium-sized parks or forests near residential areas.

Urban life and sunshine: Equitable sunlight resource allocation among different consumer groups?

Owing to the significant role of sunlight hours in human survival, it is crucial to assess the fairness of sunlight resource allocation among different socioeconomic classes, which is essential for the overall harmonious development of a society. This study focused on selected residential communities in Fuzhou, China, and conducted a simulation analysis of sunlight hours using a Solar Grid Model. Additionally, based on the transaction prices of residential properties in the area, this study employs regression analysis to discuss the current supply and demand of sunlight hours for residences with different price ranges. This study found that properties belonging to the lower-spending group may experience excessive sunlight hours during summer. An increase of one hour in sunlight hours on the summer solstice is associated with a decrease of approximately 45,000 RMB in the total property price. In contrast, the higher-spending group is more likely to face insufficient sunlight during winter, and an increase of one hour in sunlight hours on the winter solstice is associated with an approximate 28,000 RMB rise in the total property price. Furthermore, the study found that controlling the size of the property area for medium- to low-priced residential properties within a range of 113 m2 enables better utilization of sunlight resources. In contrast, high-priced residences, if designed with large protrusions, are prone to wasting sunlight resources. This study employed a novel approach to simulate and replicate the current sunlight conditions in urban architectural clusters. For the first time, this study systematically analyzed variations in the demand for sunlight hours across different socioeconomic groups, using property prices as references. Finally, this study summarizes the typical characteristics of sunlight design issues related to residential sample variations and proposes corresponding solutions.

An Investigation into the Prevalence of Methamphetamine Related Enquiries to Local Government Environmental Health Officers.

Methamphetamine contamination of residential properties remains a serious public health concern for members of the public. External stakeholders including Environmental Health Officers (EHOs) and testing and remediation technicians are engaged on investigating whether contamination has occurred from manufacturing or smoking processes. More specifically, local council EHOs are responsible for managing clandestine drug laboratories when notified by police and also for responding to public enquiries. However, the full scope of these contaminated properties is not seen by any single stakeholder, making it very challenging to quantify these situations. To evaluate the prevalence of methamphetamine related enquiries from the general public to EHOs, this study surveyed and interviewed officers from around Australia. It was found that public enquiries were infrequent with only 6% of respondents having received enquiries in the last month, which indicates that people are seeking information from other sources. Interestingly, there were case study scenarios that also mentioned issues with awareness and the flow of information. Concerns regarding difficult cases, police notifications, and site visits were also highlighted. The results of this study provide a benchmark of how methamphetamine related cases are managed and highlight the need for trustworthy information that is available to EHOs, governments, industry members, and the public in a unified location.

VECM 모형을 이용한 임차권등기명령에 영향을 미치는 요인 분석

This study analyzed factors influencing the non-returned of Chunsei deposits quantitatively by using the number of lease registration orders as the dependent variable and corporate bond interest rates, Chunsei rate, Chunsei price index, and index of actual transaction prices for residential property as independent variables, using vector error correction model. The shock response analysis showed that corporate bond interest rates and Chunsei rate exhibited a positive effect on lease registration orders, while the Chunsei price index and the index of actual transaction prices showed a negative effect. The variance decomposition analysis revealed that initially, the Chunsei price index had a significant influence on the occurrence of lease registration orders, while corporate bond interest rates consistently exerted a significant influence at all time lags. The implications drawn from this study suggest that for preventing incidents such as non-returned of Chunsei deposits, the government needs to thoroughly analyze and continuously monitor changes in interest rates, Chunsei price index, and House price index, and formulate and implement policies tailored to the market conditions.

Exploring the factors inhibiting Residential Property Market Efficiency in Akure, Nigeria

This research assessed factors inhibiting residential property market efficiency in Akure, Nigeria. Data were gathered through structured questionnaires administered to (2,668) property owners/tenants selected out of 12,325 (twelve thousand, three hundred and twenty-five) target population. Twenty-six (26) Estate Surveying and Valuation Practicing firms in Akure, as contained in the 2023 register of the head of a firm of the Nigerian Institution of Estate Surveyors and Valuers (NIEVS) Ondo State Branch, were also administered. Data collected were analyzed using the Kruskawalis Test. The study revealed no statistically significant differences in the opinion of the respondents in the three selected residential neighborhoods and the practicing Estate Surveying and Valuation firms on the factors inhibiting residential property market efficiency in Akure. The study recommended that the Government and relevant stakeholders in the property market should develop a workable framework and environment to improve the condition of the market and ensure a robust, efficient property market. Also, the Nigeria Institution of Estate Surveyors and Valuers should help provide adequate market information to ensure transparency and efficiency in the property market. Keywords: Market Efficiency, Residential Property Market, Estate Surveyors and Valuers

Integrating rational and irrational factors towards explicating investment satisfaction and reinvestment intentions: a study in the context of direct residential real estate

Purpose The purpose of this study is to understand the investment decision-making of real estate investors in housing, highlighting the interplay between rational and irrational factors. In this study, investment satisfaction was a mediator, while reinvestment intention was the dependent variable. Design/methodology/approach A quantitative, cross-sectional and descriptive research design was used, gathering data from a sample of 550 residential real estate investors using a multi-stage stratified sampling technique. The partial least squares structural equation modelling disjoint two-stage approach was used for data analysis. This methodological approach allowed for an in-depth examination of the relationship between rational factors such as location, profitability, financial viability, environmental considerations and legal aspects alongside irrational factors including various biases like overconfidence, availability, anchoring, representative and information cascade. Findings This study strongly supports the adaptive market hypothesis, showing that residential real estate investor behaviour is dynamic, combining rational and irrational elements influenced by evolutionary psychology. This challenges traditional views of investment decision-making. It also establishes that behavioural biases, key to adapting to market changes, are crucial in shaping residential property market efficiency. Essentially, the study uncovers an evolving real estate investment landscape driven by evolutionary behavioural patterns. Research limitations/implications This research redefines rationality in behavioural finance by illustrating psychological biases as adaptive tools within the residential property market, urging a holistic integration of these insights into real estate investment theories. Practical implications The study reshapes property valuation models by blending economic and psychological perspectives, enhancing investor understanding and market efficiency. These interdisciplinary insights offer a blueprint for improved regulatory policies, investor education and targeted real estate marketing, fundamentally transforming the sector’s dynamics. Originality/value Unlike previous studies, the research uniquely integrates human cognitive behaviour theories from psychology and business studies, specifically in the context of residential property investment. This interdisciplinary approach offers a more nuanced understanding of investor behaviour.

Improving search efficiency in housing markets using online listings

AbstractThe use of online listing portals helps improve search efficiency in real estate markets. Unlike the traditional channel, buyers could search more properties and find ones with characteristics that were closer to their preferences via the online channel. Using the merged data sets containing online listings and transactions in the private residential property markets in Singapore, we found that real estate agents sell houses for an average premium of 4.21% using online listings relative to other agents using the traditional listing channel. The models use the propensity score matching approach to remove compositional differences in the samples and include property and spatial attributes in the controls, as well as the fixed effects on the agency, planning sector, and month‐year. Using only the matched online listing‐transaction samples, we found that exclusive listings, using more words and numeric in listing content, making listing descriptions easy to read, and selecting multiple listing portals are online listing strategies that enable real estate agents to sell houses faster and above the asking prices.

Exploring the spatialisation of the performance of residential REITs investment and direct investment in the housing market

ABSTRACT Despite numerous studies about the housing sector, the connection between the performance of residential real estate investment trusts (REITs) investment and direct investment in the housing market is still under-researched. To help fill this gap, we used quarterly data of the Australian Securities Exchange (ASX) residential REITs index and direct housing returns of Australia and its major cities, spanning March 1983 to June 2021, and adopted a suite of econometric methods to document the following findings. First, publicly listed housing (residential REITs) and private housing markets are not separated, but both are closely related in terms of their investment performance. Second, the performance of direct investment in the housing market of Adelaide, Brisbane, Melbourne and Sydney could lead to positive investment performances for residential REITs over time, while no comparable evidence is found for Canberra, Darwin, Hobart and Perth. Third, further analyses revealed a one-way direction of performance, flowing from the housing market of Brisbane, Melbourne and Sydney to residential REITs, while no similar evidence of performance flow was found for Adelaide. Our study has provided new evidence that could contribute to the discussion on the expansion of residential properties in the portfolio of institutional investors.

The effects of a short information-giving intervention on householders’ beliefs and actions related to window opening as purge ventilation of water vapour: implications for surveyors

PurposeHigh levels of interior water vapour lead to condensation and black mould that in turn represent significant risks to residential properties and their occupants. Beliefs about window opening are good predictors of the degree to which householders will actually open windows to purge their homes of water vapour, including water vapour that they themselves generate. The present study tested if a short information-giving intervention could enhance householders’ beliefs that foster window opening as purge ventilation and, in turn, lead to greater window opening.Design/methodology/approachData were collected from 242 UK householders with robust psychometrically sound measures embedded in an online self-report survey that also presented the intervention information.FindingsThe intervention led participants, and males in particular, to have significantly greater concerns about condensation and mould and significantly less concerns about heat loss costs arising from opening windows, and these altered beliefs in turn predicted a greater intention to open windows in the future.Practical implicationsBy sharing simple information, surveyors and other building professionals can help householders take the simple step of opening their windows and so reduce the threats that condensation and mould present to themselves and their homes.Originality/valueThis is the first study to test (1) a time-based model that predicted the intervention would have a positive effect on specific window opening attitudes and that those new attitudes would in turn affect window opening intentions, and (2) if the intervention had different effects on men and women.

New Clientelism in Urban China: Broker-Based Evasions in Residential Property Market

ABSTRACT Scholarly debates concerning the transformation of clientelism have rarely focused on everyday life in urban China. This ethnographic study in Nanjing city attempted to characterize the new patterns of patron–client ties by examining how real estate investors evade unfavorable rules and multiple layers of ‘authorities’, such as local governments, banks, and state-owned developers, offer or withdraw their support. The article highlights a new clientelism that differs from Chinese guanxi and old clientelism. The new form is broker-based, where new patrons and clients no longer interact directly but exchange through brokers. Brokers act as ‘white gloves’ for new patrons to maximize profit and security and as temporary bridges for clients to access patronage resources. Brokers are highly specialized, and their relationships with clients are not sentimental but instrumental, unlike zhongjian ren in guanxi. The emerging broker-based clientelistic networks reinforce inequality of opportunity but not necessarily economic inequality. Implications for understanding power and the housing system in contemporary China are discussed.

Impact of Green Features on Rental Value of Residential Properties: Evidence from South Africa

In recent years, scholars have called for an increase in the usage of green features in the built environment to address climate change issues. Governments across the developed world are implementing legislation to support this increased uptake. However, little is known about how the inclusion of green features influences the rental value of residential properties located in developing countries. Data on 389 residential properties were extracted and collected from a webpage. Text mining and machine learning models were used to evaluate the impact of green features on the rental value of residential properties. The results indicated that floor area, number of bathrooms, and availability of furniture are the top three attributes affecting the rental value of residential properties. The random forest model generated better predictions when compared with other modelling techniques. It was also observed that green features are not the most common words mentioned in rental adverts for residential properties. The results suggest that green features add limited value to residential properties in South Africa. This finding suggests that there is a need for stakeholders to create and implement policies targeted at incentivising the inclusion of green features in existing and new residential properties in South Africa.

Waqf—The Muslim endowments in India: ideological and legal intricacies

Abstract Waqf is the permanent dedication by any person, of any movable or immovable property for any purpose recognised by the Muslim law as pious, religious or charitable. Making waqf is considered a virtuous act in Islam. As a result, Muslims established auqaf wherever they lived. Apart from agricultural, commercial and residential properties, waqf in India includes functional/non-functional mosques, darghās (tomb or shrine of Muslim saint), khanqahās (building or space for Sufi brotherhood), maqbaras (tombs), ashoor-khanās (mourning place for Shias), qabristāns (graveyards), idghās (space to offer Eid Prayer), imam-baras (space for prayers and gatherings for Shias), etc. With the passage of time, waqf endowments started playing an important role in shaping the religious, social, educational, cultural, economic and political aspects/institutions of Muslim societies. This voluntary institution of waqf supplemented the State in fulfilment of its obligations towards the provisions of public good. This interaction between the state and the waqf created ideological and legal intricacies that have shaped the present-day waqf legislations.

Ecosystem service values provided by National Parks to residential property owners

This paper focuses on the ecosystem service benefits to homeowners from living in close proximity to three National Parks. Knowing these ecosystem service benefits is of policy and management relevance as expansion of existing Parks and protected areas along ecosystem boundaries often requires acquisition of undeveloped private land or other multiple use public lands, something that local officials may oppose. While the effects on house prices from urban parks, and two other types of U.S. Federal lands have been studied, the effect of lands in the U.S. National Park System on house prices had not been studied at the time of this research. To fill this information gap, hedonic price models were estimated to calculate the effect on residential house prices of proximity to three National Parks (NPs). After controlling for other characteristics of the house, neighborhood, and several other types of open space (e.g., National Forests, County Parks), we estimate house sale prices were on average 9.8% higher for houses within 2 km of National Park boundaries. This house price premium represents the value of the ecosystem services received by homeowners from living in close to these NPs. Quantifiable information on local ecosystem service benefits may ameliorate some concerns by local governments about converting private land or other agencies' multiple use lands in order to expand NPs or protected areas to better reflect ecosystem boundaries rather than historical, and often arbitrary boundaries. In addition, quantifiable information on enhancement of property values may broaden stakeholder groups to include the real estate industry. Thus, our results may support agencies in better achieving their objectives of managing NPs as ecological units.

A residential property appreciation and bank financing feasibility for acquisition in Hermosillo, Sonora

This study focuses on the Capital Gain of residential housing and its feasibility through bank financing in Hermosillo, Sonora. The purpose is to analyze the evolution of capital gain in the residential market and assess its possibility of acquisition through bank financing in the region. The main methodology includes a historical analysis of housing prices and a comprehensive evaluation of the current financing conditions provided by local banks. Key findings highlight a sustained increase in the capital gain of residential properties in Hermosillo. Economic and developmental factors have contributed to this constant growth. Furthermore, it has been proven that bank financing is a viable alternative for those interested in acquiring homes in this area. The capital gain in Hermosillo presents a promising outlook for both investors and buyers alike. The upward trend in housing prices, supported by favorable conditions in the local economy and urban development, highlights the potential for investment in the region. The availability of bank financing further facilitates access to the acquisition of residential properties, making it appealing for those seeking to invest in real estate in Hermosillo. In conclusion, this study underscores the viability of acquiring residential properties through bank financing and emphasizes the importance of considering capital gain as a valuable indicator in real estate decision-making in Hermosillo, Sonora.

How information asymmetries exacerbate building defects risks for purchasers of Australian residential multi-owned properties

ABSTRACT Increasing urbanization is driving rapid growth in residential multi-owned properties (RMOPs) worldwide. Concerns about the quality of these buildings are also growing in many countries. Yet research into the quality of RMOPs (particularly apartments) remains scant and under-theorized. Addressing this knowledge gap, this paper reports the results of research which employed information asymmetry theory to provide new insights into the prevalence and risks of building defects in the Australian RMOP construction market. Using data about defects in 635 RMOPs built in Sydney between 2008 and 2017 and semi-structured interviews with sixty-six experienced practitioners, the results highlight the severity of the defects crisis. The research identified two types of information asymmetries which exacerbate the risk of buying into a defective building for RMOP customers: data fragmentation and data robustness. From a policy and practical perspective, this highlights the challenges faced by consumers in undertaking ‘due diligence’ and the need for reforms that address these information asymmetries.

Financing “climate-proof” housing? The premises and pitfalls of PACE finance in Florida

ABSTRACT Amidst growing concerns about climate risks to the U.S. housing markets, strategies to physically retrofit homes are gaining attention—including within debates over how to resolve intersecting crises of housing re/insurability and affordability in highly exposed sites like Florida. We consider an important but under-studied example of this “climate-proofing” strategy unfolding today: Residential Property Assessed Clean Energy (PACE) finance. While PACE has historically financed decarbonization retrofits, it is increasingly being deployed to facilitate hurricane risk reduction in Florida. In this paper, we introduce PACE: its basic characteristics, evolving uses, and controversies. Exploring the Florida case, we examine two deeper but as yet under-examined financial tensions: PACE’s intersections with other forms of property-linked finance (and potential systemic breakdowns) and rising affordability breakpoints as homeowners encounter its new debt amidst other growing and intersecting climate/climate response costs. These issues call for more transformative imaginaries of urban retrofitting and its resourcing.

Real estate price estimation through a fuzzy partition-driven genetic algorithm

Evaluating the actual price of a residential property is a critical issue in the real estate market. Real estate market practitioners gauge a property's price by considering features such as property type and residential area. Subsequently, they evaluate the property's intrinsic features, such as condition, sun exposure, scenic views, and ancillary amenities. Finally, extrinsic features such as the proximity of services and infrastructure are assessed. This paper proposes a new genetic approach for selecting residential properties that meet the purchase offer and the intrinsic and extrinsic characteristics desired by the client. Since the real estate market's changes can influence extrinsic features, the method introduces price fluctuations of properties. Extrinsic features are modelled as fuzzy partitions: each fuzzy set describes a qualitative aspect of the corresponding feature that, expressed in a linguistic term, has a human-like interpretation. Then, a deviation value (fluctuation) from the average price of the property is considered for each fuzzy set in the partition. All the property features, extrinsic and intrinsic, are encoded in the chromosome genes of the genetic algorithm. The fitness function calculates the distance between the unit price of the property and the purchase offer. Some case studies were conducted in various Italian municipalities, using the average price per square meter of residential properties the Osservatorio del Mercato Immobiliare (OMI) assigned. Depending on customer requirements and preferences, different OMI zones were selected using additional characteristics such as type, location, conservation, and proximity to various urban services. The results demonstrated the effectiveness of the proposed approach for all the case studies, showing how the optimal solution represents a good compromise between customer preferences and market offerings.

Urban expansion effects on real estate ecosystems: Identification and neutrosophic analysis of causal dynamics

Real estate ecosystems are the result of symbiotic relationships between different types of real estate, including residential, commercial, or industrial properties. Maintaining a balance among these categories is essential for these ecosystems’ ability to function properly. Real estate currently is largely a product of urban expansion caused by population increases and distances from primary-sector industries. The unplanned growth of urban areas can have profound consequences for local residents’ health and the environment. However, when well structured, urbanization can have a positive effect on societies’ well-being. The relationship between this expansion and its impact on real estate ecosystems is an extremely complex, subjective topic, so decision makers cannot apply just one solution when making plans. This study develops a multicriteria analysis model to support decision making processes, which provides a structured understanding of urban expansion effects on real estate ecosystems and deals with the inherent subjectivity and complexity of this decision problem. Cognitive mapping and decision-making trial and evaluation laboratory (DEMATEL) technique were combined in a neutrosophic environment to incorporate uncertainty and produce a more realistic analysis system, thereby overcoming various limitations of previous research on urban expansion (e.g., unclear way by which relevant factors/criteria are identified in most cases, and lack of analyses dealing with the dynamics of their causal relationships). Decision makers with professional experience in relevant areas collaborated to provide essential input used to create the proposed model. External experts validated the results, confirming the potential of our analysis system for real-life applications.

Developing a mobile application with geo-analytic tools to perform real estate valuation within smart cities

Urban land management policies and applications require comprehensive information about real estate development dynamics and value criteria. In this study, geo-analytic tools and a mobile app were produced for residential property valuation in smart cities. Geo-analytical tools were automated to process and use datasets extracted from the databases and ‘Smart Real Estate’ mobile app using data sets produced by the developed geo-analytics tools shares map services automatically. In this way, users can get real-time location data via web services by triggering geographic analysis tools at certain intervals. It can manage and analyse big geographic data to share smart city services about real estate to citizens.

Flattening which curve? Property-price gradients in New South Wales during the COVID-19 pandemic

ABSTRACT This paper tests how the patterns of residential property values in the Australian state New South Wales changed during the COVID-19 pandemic. Between 2019 and 2021, property values became relatively high in medium-sized towns and cities, suggesting those locations became more attractive. In its capital and largest city Sydney, the premium on proximity to the central business district (CBD), where employment is heavily concentrated, decreased after 2019 and that decrease persisted beyond the end of pandemic measures. The premium in Sydney on proximity to the beach has increased, but on a trajectory consistent with an existing trend. The decreased premium on proximity to the CBD since 2019 appears to have initially been related to the value of access via public transport, but then also to the value of access by car. The findings suggest shifts in regional development and urban form that could have implications for how cities are planned and developed.