scholarly journals Housing Vulnerability and Property Prices: Spatial Analyses in the Turin Real Estate Market

2018 ◽  
Vol 10 (9) ◽  
pp. 3068 ◽  
Author(s):  
Alice Barreca ◽  
Rocco Curto ◽  
Diana Rolando
Keyword(s):  
Real Estate ◽  
Social Vulnerability ◽  
Real Estate Market ◽  
Spatial Analyses ◽  
Price Determination ◽  
Spatially Correlated ◽  
Property Prices ◽  
Vulnerability Indicators ◽  
Property Price ◽  
Physical Features

In the literature, several vulnerability/resilience indicators and indexes are based and assessed by taking into account and combining different dimensions. Housing vulnerability is one of these dimensions and is strictly related to the buildings’ physical features and to the socio-economic condition of their occupants. This research aims to study housing vulnerability in relation to the real estate market by identifying possible indicators and spatially analyzing their influence on property prices. Assuming the city of Turin and its territorial segmentation as a case study, spatial analyses were performed to take into account the presence of spatial dependence and to identify the variables that significantly influence the process of property price determination. The results of this study highlighted the fact that two housing vulnerability indicators, representative of fragile buildings’ physical features, were spatially correlated with property prices and had a significant and negative influence on them. In addition, their comparison with two social vulnerability indicators demonstrated that the presence of economical buildings and council houses was spatially correlated with the presence of people with a low education level. The results of the spatial regression model also confirmed that one of the social vulnerability indicators had the highest and most negative explanatory power in the property price determination process.

scholarly journals A DYNAMIC RELATIONSHIP BETWEEN CONSUMER CONFIDENCE AND RESIDENTIAL PROPERTY PRICE: EMPIRICAL EVIDENCE FOR MALAYSIA

2021 ◽  
Vol 11 (1) ◽  
pp. 16-34
Author(s):  
Nur Hafizah Ismail ◽  
Sabri Nayan
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Consumer Confidence ◽  
Residential Property ◽  
The Real ◽  
The Real Estate ◽  
Property Prices ◽  
The Real Estate Market ◽  
Property Price ◽  
Housing Industry

In recent years, the real estate market has become a major interest for economists and researchers. In general, property prices are influenced by the supply and demand of the real estate market. In addition to the individual's positive expectation of the real estate market would raise the demand for housing and hence, house price indexes would increase. This study provides new knowledge on how consumer confidence in the housing industry affects residential property prices in Malaysia. Previous studies on the effect of consumer perception towards residential property in Malaysia are scarce. Therefore, the objective of this study is to determine how consumer confidence affect residential property price in Malaysia. Our study differs by focusing on the effect of consumer confidence on the housing industry and macroeconomic drivers toward residential property prices in Malaysia over the period 2004:Q1 to 2018:Q4. By using the autoregressive distributed lag (ARDL) test, the empirical results have shown the presence of long-run adjustment and indicate that consumer confidence towards the housing industry and many macroeconomic variables significantly affect residential property prices. From this finding, we have suggested that government and policymakers should be able to understand consumer confidence in the housing industry to increase consumer satisfaction and to improve consumer sentiment towards the residential property market in Malaysia.

scholarly journals Level of Foreign Direct Investments and Transparency of Polish and Global Real Estate Market

2013 ◽  
Vol 21 (2) ◽  
pp. 22-28 ◽  
Author(s):  
Karolina Czechowska
Keyword(s):  
Real Estate ◽  
Supply And Demand ◽  
Real Estate Market ◽  
Easy Access ◽  
Foreign Direct Investments ◽  
The Real ◽  
The Real Estate ◽  
Market Transparency ◽  
Property Prices ◽  
The Real Estate Market

Abstract The article aimed to present the dependencies between the transparency of the real estate market and the level of foreign investments realized on it. For developers on the real estate market, a key element, other than potential profits, may be the market’s transparency. The main feature of a transparent real estate market is easy access to credible data concerning supply and demand, rent, property prices, transactions, vacant houses and capitalization rates that could be the basis for analysis. Market transparency does not guarantee the success of an investment, but considerably influences investment decisions and the level of risk connected with them.

scholarly journals Association between Securities and Real Estate Markets: The Case of Ho Chi Minh City

2016 ◽  
Vol 23 (04) ◽  
pp. 62-79
Author(s):  
Nguyet Phan Thi Bich ◽  
Thao Pham Duong Phuong
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Securities Market ◽  
Ho Chi Minh City ◽  
Real Estate Markets ◽  
Investment Control ◽  
Expert Opinions ◽  
Long Run ◽  
Property Price ◽  
Comprehensive Survey

This study inspects the relationship between the securities market and real estate market in Vietnam, particularly the case of Ho Chi Minh City from Q1/2009 through Q3/2014. Using a comprehensive survey of expert opinions, we find that several macro factors including GDP, interest rate, inflation, fiscal policy, monetary policy, securities market regulations, international capital flows, and money market have effects on both the securities and real estate markets, which, in turn, do have mutual interactions. Furthermore, it is suggested by the survey results that among the determinants, policy on foreign investment control has the most powerful impact on capital movements between the two markets. The results of TECM analysis of property price index and VN-Index reveal a bidirectional causality between the two markets, which are positively related in the long run

scholarly journals Home Bias and the Real Estate Prices

2017 ◽  
Vol 8 (2) ◽  
pp. 145
Author(s):  
Hsiu-yun Chang
Keyword(s):  
Real Estate ◽  
Information Asymmetry ◽  
Time Preference ◽  
Home Bias ◽  
Real Estate Market ◽  
High Time ◽  
The Real ◽  
The Real Estate ◽  
Marginal Effects ◽  
Property Prices

This paper argues that the Home Bias phenomenon prevails in the real estate market, which is inferred from psychology, economic, and financial literature. Utilizing the trait of the Home bias behavior, which can reduce the risk of information asymmetry, I modify the classical pure trading model and employ the parameter of relative risk aversion as the proxy variable of Home Bias to translate the relationship among Home Bias phenomenon, the property prices, and the expected returns. The comparative static analyses indicate that Home Bias behavior is negatively related to the property prices and positively related to the property returns. The marginal effects on property prices are heightened in situations of high time preference and relative low Home Bias. Conversely, the marginal effects on property returns are larger if the time preference parameter is smaller. As a household buyer with high time preference is located far away from a property, his bargaining power is easily affected by home bias behavior. Further, this paper focuses on the home bias elasticity of property prices and returns for the sake of unit-free property. Inelastic coefficients of elasticity of prices and returns indicate that the capability of households to lower property overvalued prices (i.e. increase investment returns) from reducing information asymmetry by using Home Bias behavior is still limited.

Property prices index numbers and derived indices

2014 ◽  
Vol 32 (2) ◽  
pp. 139-153 ◽  
Author(s):  
Francesca Salvo ◽  
Marina Ciuna ◽  
Manuela De Ruggiero
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Real Estate Market ◽  
Index Numbers ◽  
Market Prices ◽  
Sales Price ◽  
Content Type ◽  
Property Prices ◽  
Innovative Methodology ◽  
Definition Of

Purpose – A useful instrument to understand and examine the inner workings of the property trade is devising index numbers of property prices based on historical sequences of market prices. The present work aims at the definition of index numbers of property prices, proposing an innovative methodology compared with what usually recurs in literature. The purpose of this paper is to discuss these issues. Design/methodology/approach – The analysis proposed, based on the mechanisms of formation of stock indices, investigates the analogies between stock and property information, according to the peculiarities of the property trade, leading to a methodology approach, derived from Simple Price Index Method, able to consider possible anomalies in the collected sample of purchase prices, using weighting coefficients based on reliability coefficients of sale prices of properties. Findings – The novel approach proposed has led to the definition of a original methodology useful to appraise property price index numbers and other derived indicators, effective for interpreting and identifying real estate market dynamics in a given area of study, regarded as a standard estimating methodology applicable to any geographical context and kind of property. Practical implications – Methodology proposed in this work is useful to revalue real estate sales price and to consider presence of anomalous sales price in property samples. Originality/value – The calculation of index numbers of prices is usually based on Simple Price Index Methods. Literature shows large use of different methods, such as Repeat Sales Method, Hedonic Price Method, Repeat Value Model. The present work propose an innovative methodology able to detect the presence of possible anomalous market prices in the representative sample, using an appropriate vector of weights in order to take into account the level of reliability of market data.

scholarly journals REAL ESTATE MARKET OF A BRAZILIAN METROPOLIS: SUSTAINED GROWTH OR SPECULATIVE BUBBLE?

2017 ◽  
Vol 18 (2) ◽  
pp. 211-236
Author(s):  
RONALDO LAMOUNIER LOCATELLI ◽  
HAROLDO MARCIO INÊS ◽  
JOSÉ EDSON LARA ◽  
FERNANDO TADEU PONGELUPE NOGUEIRA
Keyword(s):  
Real Estate ◽  
Unit Root Test ◽  
Efficient Market Hypothesis ◽  
Real Estate Market ◽  
Selling Price ◽  
Speculative Bubble ◽  
The Real ◽  
The Real Estate ◽  
Economic Fundamentals ◽  
Property Prices

ABSTRACT Purpose: To analyze the real estate sector of a Brazilian metropolis in the recent period of great valuation of the asset in the country and to investigate if there are signs of a speculative bubble in this market. Originality/gap/relevance/implications: This article presents a version of the Case-Shiller Index, which describes the evolution of the relationship between house prices and rental prices and uses models in order to identify if the rise in property prices rests on good economic fundamentals. Key methodological aspects: The approach is quantitative and involves the construction of the price-rent index, unit root test with an instrument that allows structural break with trend (Innovation Outlier Model) and analysis of cointegration using estimates of a Vector Error Correction Model (VECM). Summary of the results: The results do not favor the interpretation that the real estate market rests on solid economic fundamentals. On the contrary, the evolution of the price-rent index and the lack of causal relationship of rents to prices towards long-term equilibrium are suggestive of the existence of a speculative bubble. Key considerations/conclusions: The results support authors who are critical to the efficient market hypothesis (EMH) and suggest that the relative increase in property prices stems only from the belief that their selling price will be higher in the future. It is therefore foreseeable a decrease of real prices of housings, with equity losses for the participants in that market.

scholarly journals Lifelong Property Price Prediction: A Case Study for the Toronto Real Estate Market

2021 ◽  
pp. 1-1
Author(s):  
Hao Peng ◽  
Jianxin Li ◽  
Zheng Wang ◽  
Renyu Yang ◽  
Mingsheng Liu ◽  
...  
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Price Prediction ◽  
Property Price

scholarly journals Asymmetric Patterns of Demand-Supply Mismatch in Real Estate

2021 ◽  
Author(s):  
Gianluca Marcato ◽  
Anupam Nanda
Keyword(s):  
Real Estate ◽  
Side Information ◽  
Real Estate Market ◽  
Panel Var ◽  
Price Determination ◽  
Economic Agents ◽  
The Real Estate ◽  
Economic Cycles ◽  
Structural Panel ◽  
Reservation Prices

AbstractAs expectations change, we may observe asymmetry in responses of economic agents over various phases of the economic cycles. In this paper, we analyze both demand and supply side information to understand the dynamics of price determination in the real estate market and examine the relationship between expectation parameters and demand-supply mismatch. Our hypothesis builds on the possibility that investors’ call for action in terms of their buy/sell decision and adjustment in reservation prices may provide valuable insights into impending demand-supply imbalances in the market. We study several real estate sectors to inform our analysis. The timeframe of our analysis (1995–2010) allows us to observe market dynamics over several economic cycles. We test our hypothesis variously using several measures of market activity within a structural panel VAR framework. Our analysis suggests that investors’ attitude may have substantial and statistically significant feedback effects in price determination. These results indicate noticeable asymmetry in responses during the boom, normal and recessionary periods.

scholarly journals Can green labels become the new normal?

2019 ◽  
Vol 111 ◽  
pp. 03053
Author(s):  
German Molina ◽  
Michael Donn ◽  
Micael-Lee Johnstone ◽  
Casimir MacGregor
Keyword(s):  
Real Estate ◽  
Willingness To Pay ◽  
Meta Analysis ◽  
Real Estate Market ◽  
Price Premium ◽  
Purchase Price ◽  
Residential Real Estate ◽  
Residential Housing ◽  
Property Prices ◽  
Market Transformation

This study sought to review the effectiveness of green labels on the residential real estate market. As past studies revealed, green labels increased property prices, which motivated developers to build more green certified buildings. However, contradictory studies revealed that many developers did not use green labels due to a lack of consumer demand. Therefore, what impact do green labels have on the residential housing market? A meta-analysis of 36 articles presenting 52 different studies, published between 2008-2018, suggests that the price premium charged for green labels may have been systematically overestimated. Consumers’ willingness-to-pay (derived from correlating green labels with purchase price) does not necessarily represent the average consumer but green consumers. The conclusion that follows from this analysis is that full market transformation via green labels is unlikely to take place because only a fraction of the population is willing to pay the premium. Therefore, full adoption is unlikely without other market “interventions”.

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