Property price gradients: the vertical dimension

Proceedings of the 12th …, 2006

This paper examines a unique feature of multi-storey buildings -floor-level premiums.

2007

In the Netherlands, the number of realized high-rise projects is limited. Land owners and developers are searching for conditions and boundaries under which high-rise is feasible. The research started on high rise costs with literature review, and by interviewing experts working on high-rise projects and cost modelling. One of the outcomes of the descriptive model is the increase of costs with the increase of height. Land costs are equally important. As is the case for rent levels land costs depend most of all on location. Traditionally land costs are determined based upon the value of land, in which gross floor area is leading. For the developer lettable floor area and efficiency is leading. A sub model is set up for land costs in which the land owner as well as the developer can maximise their profits within reasonable limits. This model will be further developed and discussed in the field.

Landscape and Urban Planning, 2012

The relationship between a property's transaction price and its landscape views has attracted scholarly attention over the years. The Spatial Durbin model, which can provide an unbiased estimate in all types of true spatial data-generation, is introduced in this study to discuss the impact of these landscape view factors on property prices. The emphasis of this paper is on various landscape view influences on different submarkets (i.e. storeys) of high-rise buildings in a compact city such as Hong Kong. The findings indicate that while the availability of garden view is found to be positively correlated with transaction prices of flats in all three submarkets, varying degrees of differences are observed as to the impact of landscape attributes (such as seaview and proximity to avenue/street) and of the spatial lag effect on transaction prices of flats in these submarkets. In particular, contrary to popular beliefs, the availability of seaview is not considered a positive attribute to the transaction prices of high-storey flats. These differences indicate the importance of vertical spatial influence which has not been considered in conventional spatial models, but is useful in studying the situations in other cities which are also compact and consist mainly of high-rise buildings.

Geographical Analysis, 2010

Housing Price Gradients: The Intersection of Space and Built Form A hedonic housing price model, implemented for the Dallas region, reveals a housing market structured around multiple nodes, some of which give rise to positive and others to negative externalities. The utility / disutility derived from relative location is capitalized into the size and quality of the housing stock and the nature of neighborhood amenities. The result i s a convergence of space and built f m. Even the most cursory examination of housing price variations in modem American metropolitan regions reveals a complexity of spatial patterns unanticipated and unexplained by the monocentric model of Alonso (19641, Muth (19691, and Mills (1967). In this paper we examine these patterns as they have been represented in the Dallas housing market since 1985. In particular, we explore relationships between relative location, housing characteristics, and neighborhood amenities in the determination of housing prices. The literature on hedonic price models of the housing market calls on the Lancastrian concept of housing as a bundle of services, the implicit prices of which can be estimated by regression of sales prices on an array of these components. Typically, the housing services are grouped into structural characteristics (size, age, quality), neighborhood amenities (characteristics of the neighborhood housing stock and demographics, school quality), and location (most commonly distance to the central business district (CBD), as suggested by the monocentric model). Recently, more attention has been paid to the locational aspects of housing markets in modem, sprawling cities such as Los Angeles (Heikkila et al. 1989) and Dallas (Waddell, Berry, and Hoch 1993) by incorporating accessibility to suburban employment centers, expressways, and other potential nodes and axes of influence. As these models are extended to include more spatial variables, the likelihood of

The share of apartment complexes in housing stock of major cities in the developing world has been increasing. They represent a different housing submarket whose growing importance necessitates further research. Using survey data on transaction records of real estate agents, we employ a hedonic pricing model to explore the factors influencing apartment prices in the Metropolitan Izmit area. The site of a major reconstruction effort following a strong earthquake, Izmit has been in the forefront of the changes taking place in the Turkish real estate sector in particular, and in urban housing in general. We aim to get better estimates by focusing the study on apartment complexes in Metropolitan Izmit, the major submarket in the area. The results reveal that structural characteristics of an apartment as well as amenities provided in an apartment complex are important determinants of price. Air quality and proximity to a good public school have a major effect on price as well. The findings suggest that the submarket could be segmented further geographically.

Journal of Urban Economics, 1997

Urban Design and Planning

The objective of this research is to determine the role of urban street layout design in the process of shaping property values. The effect of spatial accessibility on rent is a classic finding of spatial economics. Using space syntax fine-grained spatial design analysis, which indexes the spatial centrality and accessibility, the patterns of property prices are analysed for a large contiguous sample of over 60 000 residential dwellings in a North London borough, using the council tax band as a proxy variable for the property price. Few studies have examined the effect of spatial contiguity on the housing sub-market classification. The findings demonstrate that the council tax band proxy is a good indicator of residential property sale prices. In addition, a hedonic model framework shows that spatial centrality and accessibility, as indexed by the space syntax spatial design analysis, accounts for the variations in residential property values for single and multiple dwellings when c...

SSRN Electronic Journal, 2020

Does design contribute to real estate value? Practicing architects require evidence to justify both functional and aesthetic building needs within the financial ecosystem. Some buildings that become real estate assets are valued using models that consider some proxies for understanding value, but these features are abstract and may misidentify the sub-optimal differentiation that design brings. The lack of feedback between real estate valuation and building design often leads to poor design and economic outcomes. To address this miscommunication, we investigate the transaction price performance of four external architectural form features-diagonality, curvature, setbacks and podiums. Whilst controlling for drivers that are known to explain transaction price variation, we find that diagonality and podiums have a positive pricing differential of 12.4 and 9.7% more than rectilinear control buildings, respectively. Buildings with setbacks have a negative pricing differential of 10%. Furthermore, these results are also consistent for rental valuation. Results suggest that there is a significant economic impact of some architectural form interventions that differentiate commercial buildings and contribute to the role of form in design, planning and commercial real estate.

Journal of European Real Estate Research

Purpose This paper aims to investigate whether developers’ ask lower prices on homes in redevelopment sites than they do on similar units in smaller developments completed over a shorter time span. It also investigates whether developers price units differently at different stages of the redevelopment process. The development of designated redevelopment areas often consists of multiple projects spread across several years, some in parallel, some sequential. New units are put on the market in a piecemeal fashion, and infrastructure, shared green spaces and shared facilities are installed successively. Design/methodology/approach A hedonic price model is used to analyse sales prices of 7,000 new apartments in Oslo sold between 2011 and 2015, all else being equal. The paper distinguishes between infill as one-stage projects, and multi-staged competitive and multi-staged monopolistic redevelopments. Findings Dwellings in redevelopment projects sell at a lower price than similar dwelling...

International Journal of Strategic Property Management, 2019

This paper applies spatial hedonic econometric models to estimate the willingness of buyers to pay for dwellings with different orientations based on a data set comprising 63 306 transactions of secondhand apartment sales in 10 districts in Beijing from October 2011 to September 2014. Our results indicate that apartments with South orientation are sold at a 7.8% premium compared with those with West orientation, and that apartments in ancient city areas are more sensitive to orientation. The obtained results can help architects and developers to maximize the value of development projects by optimizing the layout of apartment units on each floor.