Residential Property Values Research Articles

Influence of Urban Railway Network Centrality on Residential Property Values in Bangkok

In recent decades, Bangkok has experienced substantial investments in its urban railway network, resulting in a profound transformation of the city’s landscape. This study examines the relationship between railway development and property value uplift, particularly focusing on network centrality, which is closely linked to urban structure. Our findings are based on two primary analyses: network centrality and spatial hedonic models. The network centrality analysis reveals that closeness centrality underscores the city’s prevailing monocentric structure, while the betweenness centrality measure envisions the potential emergence of urban subcenters. In our hedonic analysis of condominiums near railway stations, we formulated various regression models with different specifications, incorporating spatial effects and network centrality. With Bangkok’s predominant monocentric structure in mind, we found that the spatial regression model, including a spatial error specification and closeness centrality, outperforms the others. This suggests that the impact of railways on property values extends beyond station proximity and encompasses network centrality, intricately linked with the city’s urban structure. We applied our developed model to estimate the expected increase in property values at major interchange stations with high network centralities. These numerical values indicate a considerable potential for their evolution into urban subcenters. These insights offer valuable policy recommendations for effectively harnessing transit-related premiums and shaping the future development of both the railway system and the city.

The impacts of water storage infrastructure on real property values and crop production

Water storage infrastructure is an indispensable part of many water supply systems, and its importance is experiencing a resurgence due to the increasing water irregularity induced by climate change and ever-growing water demand. Leveraging the commission of Hushan Reservoir in Taiwan as a quasi-experiment, this study provides some of the first causal evidence of the economic benefits of a reservoir from housing market and crop production for guiding sustainable water management. Using the administrative property transaction data and a spatial difference-in-differences framework, we find that the commission of Hushan Reservoir increases the values of residential property and farmlands by 4.1 and 8.9 %, respectively. We also find that enhanced irrigation water availability increases rice yield by over 4 % but has no impact on planted areas. Despite expectations of reduced groundwater use, our results show no evidence of a rebound in groundwater levels in the four years following the commission of the reservoir.

The effect of bus rapid transit on local home prices

Bus Rapid Transit (BRT) systems have become increasingly common in US cities. BRT stations provide a local amenity by improving transportation options for local residents, but may also represent a local nuisance due to noise or displacement of other road users. We estimate whether BRT is priced into local real estate by studying a recently opened BRT project in Vancouver, Washington. We use a difference-in-difference method with both hedonic and repeat sales estimators to test for a price effect. We estimate a 5%–7% price premium for homes located within a 20 min walk of a BRT station. Overall, BRT generated new real estate value that exceeded the project’s construction costs by a factor of six. We discuss how government could leverage future residential property value increases to fund construction of BRT projects.

Neighborhood renewal does not raise values of all aged residential properties: case from Hangzhou, China

Neighborhood renewal does not raise values of all aged residential properties: case from Hangzhou, China

Impact of solid waste landfill proximity on residential property offer values: a case study of Pune

Purpose This study aims to examine whether or not residential properties closer to landfill sites have lower offer values by the developers. That is, by analyzing real estate data and landfill site locations, the study seeks to provide insights into whether properties situated closer to landfill sites tend to have a lower offer values than those located farther away. Design/methodology/approach The study is exploratory in nature, and a case study approach is applied. A landfill site named “Uruli Devachi” is selected in the region of Pune district, and data is collected from 102 developers selling residential projects within a radius of 15 km (about 9.32 mi). The gathered data is analyzed by using basic descriptive statistics, one-way ANOVA and ordinary least squares (OLS) regression. The OLS regression helps to determine whether there is a relationship between the distance of a residential property from a landfill site and its offer value. Findings The findings suggest that landfill sites have a detrimental impact on residential property offer values, with the negative impact increasing with proximity to a landfill site. The negative effect seems to vanish after over 10 km (about 6.21 mi). The developers provide extra facilities including a clubhouse, a children’s play area, a gym and a swimming pool in an effort to mitigate the negative effects of the landfill site on residential properties. Practical implications The findings of this study could have implications for property developers, real estate professionals and policymakers in understanding how landfill proximity might impact property offer values. Originality/value This study presents many novelties for the Indian housing market: the landfill sites do have a negative effect on the offer value of residential property; the closer the residential property to a landfill site, the higher the negative effect. Further, the developers try and mitigate the negative effect of landfill sites on residential properties by providing additional amenities such as a clubhouse, children’s play park, gym and swimming pool.

Residential property value impacts of floodplain buyouts in Charlotte, North Carolina

Floodplain buyouts are an increasingly common policy for mitigating flood risk. Recent research has explored the costs of buyouts and their impacts on municipal finance and tax base. However, little work has explored the effects of buyouts on surrounding residential land values, an aspect that could contribute to the extensive literature on the land value impacts of urban land uses, including open space and ecological restoration. This study evaluates the residential land value impacts of buyouts in Mecklenburg County, North Carolina (USA), an area with extensive, municipally- and federally-funded buyouts (n = 348). Using a quasi-experimental research design that matches treatment parcels (near buyouts) to control parcels to isolate the causal impacts of buyouts, we find that buyouts are responsible for weak increases (p<0.1) in the area-normalized sales values ($/ft2) of neighboring (within 0.15 km) single-family residential properties. We additionally find positive – but also weak – sales value relationships with (1) buyouts that have programmed post-buyout land uses, such as parks or other recreation areas (USD$25.46/ft2 [$274.05/m2] when 0.15–0.2 km from buyout; p<0.05), and (2) the average age of proximal buyouts ($0.34/ft2 [$3.66/m2] within 0.1–0.15 km; $0.30/ft2 [$3.23/m2] within 0.15–0.20 km; both p<0.01). Our results suggest that post-buyout land uses may have impacts on local tax base and should play a larger part in municipal buyout decisions.

Recreation Area Characteristics and Their Impact on Property Values within Florida’s Wekiva River System

Water-based recreation areas provide many benefits to society and the ecosystem services they provide are increasingly being considered in land planning and conservation decisions. We examine the value of the Wekiva River in central Florida using a hedonic valuation model of residential property values. We analyze how structural characteristics of single-family homes and recreation area characteristics, such as fee systems, size of the area, and activities provided, impact property values. We find that publicly owned recreation areas with both land and water-based recreation activities increased property values within 5 miles of the Wekiva River. Proximity to recreation areas marginally increased housing values, and the size of the recreation areas and ecosystem type had no impact on property values. We recommend that recreation managers and land use planners focus efforts on conserving more publicly owned conservation lands that increase recreation access to residents to promote contiguous natural areas.

Valuing the Accessibility of Green Spaces in the Housing Market: A Spatial Hedonic Analysis in Shanghai, China

As a crucial determinant of urban livability, the importance of access to high-quality green spaces has long been recognized for achieving sustainable urbanization. In urban areas, higher values are usually placed in residential properties with higher accessibility to green spaces. Using housing transaction data from as many as 3388 residential communities in Shanghai coupled with high-resolution satellite data of urban green spaces, we comprehensively examine the relationship between residential property values and the accessibility of both community-owned and public green spaces. We find, in instrumental-variable estimations, that: (1) home prices, on average, increase by 0.17% if the overall green space accessibility rises by 1%; and that (2) a 1% increase in the green ratio within a community raises property values by 0.46%. Moreover, the number of accessible green spaces, area of accessible green spaces, and distance to the nearest green spaces have positive impacts on home values separately. We also find strong spatial dependence in urban green spaces and unobserved price determinants, as well as heterogeneity by location, property value, and housing type. Our empirical findings provide valuable guidance for real estate developers and local governments in valuing environmental amenities and urban planning in the context of a residential housing market.

Uncertainty in Mapping Climate Change-Related Flooding Risk to Residential Property Values

Uncertainty in Mapping Climate Change-Related Flooding Risk to Residential Property Values

The Impacts of Public Schools on Housing Prices of Residential Properties: A Case Study of Greater Sydney, Australia

Residential property values are influenced by a combination of physical, socio-economic and neighbourhood factors. This study investigated the influence of public schools on residential property prices. Relatively few existing models have taken the spatial heterogeneity of different submarkets into account. To fill this gap, three types of valuation models were applied to sales data from both non-strata and strata properties, and how the proximity and quality of public schools have influenced the prices of different residential property types was examined. The findings demonstrate that an increase of one unit in the normalised NAPLAN score of primary and high schools will lead to a 3.9% and 1.4%, 2.7% and 2.8% rise in housing prices for non-strata and strata properties, respectively. It is also indicated that the application of geographically weighted regression (GWR) can better capture the varying effects of schools across space. Moreover, properties located in the catchment of high-scoring schools in northern Greater Sydney are consistently the most influenced by school quality, regardless of the property type. These findings contribute to a comprehensive understanding of the relationships between public schools and the various submarkets of Greater Sydney. This is valuable for the decision-making processes of home buyers, developers and policymakers.

The External Costs of Industrial Chemical Accidents: A Nationwide Property Value Study

Industrial chemical accidents involving fires, explosions, or toxic vapors impose external costs on nearby communities. We examine changes in residential property values using nationwide data on chemical facilities, accidents, and residential transactions within a spatial difference-in-differences framework. We find that accidents with direct offsite impacts lower home values within 5.75 km by 2-3%, an effect that remains for about 10 to 12 years, on average. We estimate an average loss of $5,350 per home, which translates to a $39.5 billion loss to communities around the 661 facilities where an offsite impact accident occurred. We assess the assumptions needed for a formal welfare interpretation and conclude that these results roughly approximate losses experienced by nearby residents.

Effects of road infrastructure development on residential property value and land development shifts in a peri-urban area of Karachi, Pakistan

The introduction of road infrastructure development projects often triggers expectations of shifts in property values. Extensive research has already been conducted regarding the impact of such projects on property values and land development in developed regions. However, there is a research gap when it comes to developing countries like Pakistan. Therefore, this study aimed to investigate the influence of the road infrastructure development project, the M-9 Motorway, on residential property values and land development in a mega residential project in Bahria Town Karachi (BTK), Pakistan. This study employs a mixed-methodology approach, incorporating qualitative methods (interviews) and quantitative analysis (questionnaire surveys and property data analysis). Statistical tools such as Statistical Package for Social Sciences (SPSS), the Pearson correlation coefficient, and the Chi-square goodness of fit test were used for correlation and hypothesis testing. This research reveals that proximity to a major road infrastructure project directly impacts property purchase prices, rents, and land development in BTK, either positively or negatively. The obtained results align with both expectations and the existing literature. Although these findings should not directly apply to other locations and contexts, they can be considered suggestive indicators for planning purposes.

Assessment of Residential Real Estate Investment Performance in Lafia Metropolis, Nigeria

Investors are expected to be guided through investment performance measurement and analysis in order to safeguard against potential loss of investment returns or the capital invested. Whereas residential real estate (RRE) constitutes a significant part of the portfolios of individual and institutional investors across the globe, the assessment of risk-return performance of RRE investment in Nigeria generally has not been well researched. Investors in real estate (RE) in the Lafia city of Nasarawa State, like other cities in Nigeria, still rely on mere intuition, sales comparison and the rule of thumb in real estate investment decisions-making. Consequently, these ill-informed investors often venture into poorly conceived and subsequently financially disastrous real estate investment projects thereby failing to achieve their desired investment objectives. Hence, this research was conducted to evaluate the performances of RRE investment in Lafia metropolis of north-central Nigeria with a view to guiding existing and potential real estate investors and practitioners in the region in making informed property investment decision. A survey research design was adopted to collect transacted residential property value data from estate surveying and valuation firms as well as reputable estate agent offices in the study area. Mean scores, property value index and holding period return model were used to analyse the rental/capital value indices and total return performance respectively. The modified value-at-risk model was used to assess risk while the modified Sharpe ratio was used to evaluate the risk-return performance of RRE investment performance in the study area. The research findings revealed, among others, a progressive increase in rental and capital values of RRE within the study period. RRE investment showed an average rental growth of 6.8% per annum and capital value growth of 9.4% per annum. On the basis of investment returns, it was found that Angwan Doka outperformed other selected neighbourhoods in the study area with an average mean total return and risk-adjusted return of 13.76% and 0.80% per annum respectively while Shabu underperformed other locations with average mean total return and risk-adjusted return of 12.17% and 0.55% per annum. The study recommended, among others, that potential real estate investors should consider investing in residential real estate in Angwan Doka since this location gives higher total and risk-adjusted returns on residential property investment relative to other locations in the city.

Analysis of Residential Property Market Value Using Market and Cost Approach

Banks require guarantees as a benchmark for lending and alternative payments when there is a bottleneck in credit payments. This research aims to determine the market value of residential property in the form of a house which is used as a basis for guaranteeing debt in the Malang City area. The market value is obtained with a market approach using a market data comparison method and a cost approach with a market data comparison method to find land market values ​​and the depreciated replacement cost method to find building market values. This type of research is descriptive quantitative. The data used was a medium-sized residential house as the object of valuation and three comparative data in the form of residential houses that have the same characteristics to find the market value of residential houses using the market approach. While in the cost approach, three comparative data of vacant land were used to find the land market value. This valuation resulted in a market value of IDR 3,009,000,000 which was obtained from the reconciliation of market values ​​in the market approach of IDR 3,175,529,000 and the cost approach of IDR 2,758,384,000. The liquidation value is set at 70% of the market value, which is IDR 2,106,000,000.

Do residential reconversions affect residential property values? An investigation based on Québec city (Canada)

Do residential reconversions affect residential property values? An investigation based on Québec city (Canada)

Housing Market in Central European City during the COVID-19 Pandemic

Many aspects of the global economy changed during the Covid-19 pandemic, including the real estate market. This study examines the primary residential property market in Opole during the Covid-19 pandemic. It uses property transaction data from 2018 to 2021 to conduct statistical analyses and independent group tests and also takes into account the real-estate price trend from 2014 to 2020. The study finds that both property prices and preferences relating to the structure and location of housing changed during the pandemic. In the case of Opole, the number of transactions involving residential units in the primary market increased in 2020 compared to previous years. After adjusting the unit price value of residential properties for the trend in the pre-pandemic period, the study finds that there was also an increase in property transaction prices. The study confirms three important facts relating to phenomena that are occurring globally in cities today. First, local communities are more diverse in terms of the economic heterogeneity of real estate buyers. Second, unlike big urban areas, small cities may be more resistant to the process of citizens migrating to suburban areas, thereby limiting the negative phenomenon of urban sprawl. Third, the housing real estate market in small cities is considered a reliable form of investment of assets, as real estate prices increased during the Covid-19 pandemic.

The Influence of TIF Overlay Zoning on Residential Real Estate Prices

Tax increment financing, a form of overlay zoning, are purported to spur economic development and promote the public interest of the community. However, these municipal overlay zones frequently generate hostility due to their use of public funds. While a large volume of knowledge exists on the impact of residential real estate prices within a tax increment financing district, little is known about the impact of the municipal overlay zone on the surrounding community. Using four, similarly timed, but separate tax increment financing districts and a transactional residential real estate dataset, we test price implications for residential real estate property at three separate geographic distances. Using propensity score matching and fixed effects modeling, we find that the imposition of tax increment financing districts increased surrounding residential real estate property values.

ESTIMATING VALUE UPLIFT FROM TRANSIT INVESTMENTS IN SUBANG JAYA, SELANGOR USING DIFFERENCE-IN-DIFFERENCE METHOD

It is generally believed that public transport investment such as urban rail transit systems can improve accessibility, particularly in larger and denser metropolitan areas. The improved accessibility provided by urban rail transit systems can drive up the value of surrounding land or property due to increased buyer demand. Based on this general belief, the study estimates the impact of the Kelana Jaya LRT line extension on residential property values in Subang Jaya, Selangor. Using Difference-in-Difference (DID) method with transaction-based data of 1,006 terraced properties, it is estimated that a typical terraced unit located within 0.8 km of the nearest LRT station and be sold during the construction phase of the project and after the system became operational would fetch a respective premium of approximately 4.7% and 5.3%, or RM31,490 and RM35,510 on average. It is also estimated that the overall impact on the price of terraced properties located within 0.8 km from the nearest LRT station in Subang Jaya, amounts to nearly RM11.6 million. An interesting accounting implication arising from this potential revenue is that it could provide a significant financial incentive to fully or partially fund urban rail transit projects in the Greater Kuala Lumpur area.

Analysis of Capital Values of Duplex Residential Properties in Benin Property Market Segments

Duplexes are types of residential properties built and designed on two floors to accommodate a single family unit and these have become a trending form of residential accommodation in recent times. An investor would be interested in observing the trend of capital value of such investment to be able to appreciate his venture. The aim of this study is to analyze the capital value of duplex residential properties in Benin property market, having the objectives of determining the trend and significance of variation of capital values in the identified market segments of Benin City. The survey research design was used as the research methodology. Estate surveying and valuation firms active in property management in Benin provided responses through questionnaires, interviews and observed documented records. Tables, graphs, trend analysis, and one-way ANOVA were used to examine the data collected. The study revealed that the trend of capital values of Duplexes has been steadily increasing over time, and indicated significant variation in the respective property market segments except in Siluko. As a result, it was concluded that the trends and variations could be attributed to the level of accessibility of the property, cost of building materials, trends in the property market, cost of land, and other factors, and that prospective investors should consider these factors before investing in Duplex residential property in Benin City in order to hedge over loss or depreciation of capital value of investment.

Urban property markets and security risk: explaining how neighborhood security shapes housing rental prices in Ojo Lagos, Nigeria

PurposeWhile the declining rate of urban security and its potential effects have been globally acknowledged, the ways urban neighborhood security shapes real estate markets in African cities remain largely unexplained. The purpose of this paper therefore is to present the findings from a study of the nexus between urban neighborhood security and home rental prices in Lagos, Nigeria.Design/methodology/approachThis paper is based on the hedonic price theory, an objectively derived urban neighborhood security index (UNSI) and property rental price data in Ojo, Lagos, Nigeria. This is a quantitative cross-sectional study that employs multistage sampling survey procedure. Data are analyzed using descriptive statistics, nonparametric correlation and hedonic price function with ordinary least squares (OLS).FindingsResults show that nearly 50% of the study area is prone to insecurity and average rental values in Ojo, Lagos range from N151329.41 ($302.66) to N167333.33 ($334.67) per annum. Correlation analysis shows that home rental prices have high, positive and significant correlations (rs = 0.725 and p < 0) with UNSI. After controlling for neighborhood and structural factors, it is found that urban neighborhood security positively influences home rental values as a unit improvement in security leads to N81000.00 ($162.00) increase in rental value per annum.Practical implicationsUrban neighborhood security risk threatens residential property values, creates unintended residential mobility and destabilizes families. Findings from this study point to the facts that security is a key component of urban housing values and developers, and real estate investors must ensure that this component is well factored into property design, construction and valuation.Originality/valueThis is perhaps the first study that uses an objectively derived UNSI to study home rental price dynamics in Nigeria. The study extends knowledge on urban housing price determinants and contributes to literature on the crucial place of security in property management.