Residential Property Research Articles

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.

Willingness to pay for flood risk mitigation among residents living near river’s confluence in Yogyakarta, Indonesia

Both property buyers and owners are concerned about the impact of flooding on residential property price. Although several studies have investigated the possibility of property devaluation in flood-prone areas, there are still few that have looked into the effects of flooding on residential properties in Sriharjo, Imogiri, Indonesia. This study aims to examined housing characteristics such as structure, neighborhood, and environment on residential property value. We also created an interaction variable between flood and structural attributes to see whether the impact of flood inundation on property value varies depending on the age of the building, the size of the building area, and the number of bedrooms. Using the hedonic pricing model, we found that flooding reduces the market value of residential property value. The characteristics of property like land square, building square, building age, and number of rooms have influence on property price. The characteristics of neighborhoods are also influence to property price such as distance to city, distance to main road, distance to school and distance to the river. Only one environmental characteristic which influence to property price is height of flood inundation. We discovered that, on average, a rise in the amount of flood inundation decreased property prices in the research region by.015% by using a two-stage estimating approach to evaluate these associations. We calculated IDR 698,500 as the marginal implicit cost of reducing flood inundation. According to subsequent estimates, homeowners would be ready to pay an extra 0.685 percent for a decrease in flood inundation. The study’s findings will help property owners better understand the elements that contribute to property depreciation due to floods. This paper also suggests flood insurance plans since flooding is a significant issue for real estate owners.

Analysis of Environmentally Certified Residential Developments in Poland

Abstract The scale of environmental pressure caused by the construction sector has prompted a search for new technical solutions to minimize the negative impact of this part of the national economy on the environment. The drive to evaluate the adopted solutions has led to the creation of building assessment systems - environmental certificates. The aim of the article is both to introduce the certification processes used in the Polish residential property market and to indicate the locations of residential investments that have obtained the certificates in question. The paper takes a closer look at environmental certification using multi-criteria building assessment systems, i.e. BREEAM, LEED and HQE. The time scope of the presented research covered the years 2016 to the first quarter of 2022. The research carried out allowed an upward trend to be observed in the number of environmental certificates awarded, indicating the use of green building principles for residential properties. It is certain that there has been a development of this type of investment in Poland in the recent years. An analysis of the spatial distribution of the surveyed investments shows that location clusters have formed - green (low-emission) residential investments are distributed in the largest cities in Poland, which are characterized by a strictly defined consumer profile.

Market Sentiment and High-Rise Housing Prices in Hong Kong

Classical finance theories fall short of explaining volatile housing prices in Hong Kong. Employing principal component analysis (PCA) and factor analysis, this study constructs a unique Sentiment Index that integrates 11 market variables tailored to Hong Kong’s high-rise residential properties. Covering 2002Q1 to 2021Q2, including pivotal events such as the SARS epidemic, the Global Financial Crisis, stock downturns, political instability, and Covid-19, our analysis reveals the significant predictive capability of the Sentiment Index for property prices. A discernible relationship exists between housing prices and the Sentiment Index. While policies addressing smaller-sized flats (HPI40) should focus on demand-supply imbalances, those for larger apartments (HPI100 and HPI160) must consider speculative investments. An adaptive policy response with periodic assessments and measures responsive to market conditions, economic shifts, and geopolitical events is imperative for the robust and stable development of Hong Kong's housing market.

The Potential of Residential Property in Poland as an Inflation Hedge Investment

Abstract The research objective of the article was to assess the potential of residential property in Poland as an inflation hedge investment. The study was conducted using innovative measures of the level of inflation hedging. The study was made for Poland’s six largest local residential markets, for two types of investments, for different investment horizons (from 6 to 15 years). The research period adopted was: 3Q2006-4Q2022. In all cities, investments providing only capital gains allowed an attractive inflation hedging level to be achieved. Investments that additionally included rental offered a high inflation hedging level. The variation in the six cities studied in terms of inflation hedging through housing investment was found to be very low. The question of how extending the investment horizon affected the inflation hedging ability was not firmly answered. Frequently, the extension of the investment horizon has been accompanied by an increase in the level of hedging.

TEACHING AND APPLYING WATER CONSUMPTION SIMULTANEITY IN RESIDENTIAL: AN ACTIVE LEARNING PROJECT-BASED ENGINEERING APPROACH

In the present project, spanning from April 2020 to August 2022, the study focused on Hydraulic Engineering I within the Civil Engineering program and the Hydrosanitary Installation Project in the Architecture program. The objectives included calculating the simultaneity coefficient and determining the maximum probable flow for each student's residence. To achieve these objectives, active learning methodologies, specifically project-based learning (PBL), were adeptly employed to enrich students' practical knowledge and foster collaboration. The process began with architectural surveys of residential properties, followed by inventories of pipes, sanitary appliances, and wet rooms. Measurements of flow rates at various faucet openings (25%, 50%, 75%, and 100%) were conducted, along with the recording of operating pressures within home networks. This data served as the foundation for creating calibration curves, a process carried out over 120 days. Using the collected data, each student developed a hydraulic model of their network and compared the software results to practical measurements. The participants calculated the simultaneity coefficient (Ks) and maximum possible flow for their dwellings using hydraulic design concepts and regulatory standards. The results were documented in technical reports, a video tutorial, and infographics. The research highlights the importance of understanding residential water usage patterns and their potential for optimizing water delivery systems. It also underscores the value of experiential learning, which helps students bridge theory and practice, enhancing technical skills and their understanding of hydraulic engineering.

Exploring the Impact of Multimodal Access on Property and Land Economies in Shanghai’s Inner Ring Districts: Leveraging Advanced Spatial Analysis Techniques

This study explores the impact of accessibility on property pricing and land economies by advanced spatial analysis techniques, focusing on Shanghai as a representative metropolis. Despite the impact of metro systems on residential property values, which has been frequently assessed, a research gap exists in understanding this phenomenon in Asian, particularly Chinese, urban contexts. Addressing this gap is crucial for shaping effective urban land use policy and improving the land economy rationally in China and similar settings facing urban challenges. To assess the impact of metro station accessibility on property prices in Shanghai, with extensive rail transit, and to deeply explore the overall impact of land value varieties driven by metro on urban development, we conducted a comprehensive analysis, with discussion about future aspirations for land planning and management along with landscape and facility design, and measures to improve land economy. The procedures involved creating neighborhood centroids to represent accessibility and using the Euclidean distance analysis to determine the shortest paths to metro stations. Our evaluation incorporated a hedonic pricing model, considering variables like neighborhood characteristics, housing attributes, and socio-economic factors. Advanced spatial analysis encompassing Ordinary Least Squares (OLS) regression and XGBoost analysis were employed to explore spatial effects, and Geographically Weighted Regression (GWR) helped examine spatial patterns and address autocorrelation challenges. Results revealed a negative association between distance to metro station and property prices, indicating a non-linear and spatially clustered relationship and heterogeneous spatial pattern. We dissected the non-linear results in detail, which complemented the conclusion in existing research. This study provides valuable insights into the dynamic interplay between metro accessibility and housing market behaviors in a significant Asian urban context, offering targeted suggestions for urban planners and governors to decide on more reasonable land use planning and management strategies, along with landscape and infrastructure design, to promote not only the healthy growth of the real estate market but also the sustainable urban development in China and similar regions.

PERAN MARKETING DALAM MENINGKATKAN PENJUALAN UNIT RUMAH CLUSTER KOTA BABELAN PERMAI

The variety of economic sectors such as residential property creates competition between companies. Of course, the role of marketing is very important in supporting the success of business actors in the field of marketing housing units. Every company is competing to market the house in the most efficient and creative way possible. This research formulates the role of marketing in increasing sales of housing units (case study on housing in Kota Babelan Permai Kota PT Duta Bersama). The theory used in this study is marketing communication with two main theories, namely the marketing mix and the marketing concept. The research method used by researchers in this study is a qualitative method with a post-positivism paradigm, through observation, interviews, and documentation to obtain valuable research. The results of the study concluded that the marketing carried out by PT Duta Bersama by utilizing social media (online) and direct sales (offline) because both methods have their own advantages and advantages. In PT Duta Bersama's marketing efforts such as using Instagram, Facebook, WhatsApp, online buying and selling applications and other social media platforms.