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Article

Raphael Mutisya Kieti and Walter Ogolla

This paper applies the hedonic pricing model (HPM) approach to identify critical determinants of apartment value and employs the technique to develop a valuation model…

Abstract

Purpose

This paper applies the hedonic pricing model (HPM) approach to identify critical determinants of apartment value and employs the technique to develop a valuation model that can accurately estimate the value of apartments.

Design/methodology/approach

The research employed a case study design that was limited to transaction sales and attribute data of apartments in Nyali estate, Mombasa County in Kenya. A sample of 120 sales of apartments obtained from registered real estate firms was analyzed using quantitative methods.

Findings

According to the study results, the hedonic valuation model developed comprises four critical determinants of apartment value, namely, number of parking lots, presence of swimming pool, age of apartment and provision of balcony. The hedonic model was tested and found to be accurate and reliable in estimating apartment value.

Research limitations/implications

The model will improve accuracy, reliability and efficiency in valuation. The application of the model in the valuation of apartments is, however, limited to the case study area where the data are obtained. The scope of application of the model may be improved by increasing the sample size to include apartment sales data from other estates in Mombasa County.

Originality/value

Previous studies that have used the HPM technique in analysis of apartment values have focused on the “explanatory” and “contributory” power of attributes on apartment values, rather than the development and use of the model to measure value. The present study is the first to develop a HPM equation for property value estimation in the apartment real estate sector in Kenya.

Details

Property Management, vol. 39 no. 1
Type: Research Article
ISSN: 0263-7472

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Article

Christina S. Bollo

The purpose of this paper is to determine how much variance in vacancy duration can be explained by the architectural attributes of apartments and to illuminate strategies…

Abstract

Purpose

The purpose of this paper is to determine how much variance in vacancy duration can be explained by the architectural attributes of apartments and to illuminate strategies to reduce vacancy duration utilized by non-profit housing providers.

Design/methodology/approach

This is a sequential mixed methods research study with a qualitative variable-gathering phase followed by a quantitative variable-testing phase. Vacancy duration in days was the dependent variable and the attributes of the apartments were the independent variables. Each building functioned as a separate case, with its own results, and the cases were compared to draw conclusions about the strongest predictors for vacancy duration.

Findings

Each case study project has a significant linear regression equation with multiple variables contributing to the variance in tenancy duration. The R2 statistic varied for the case study projects from a low of 10.2 percent to a high of 36.9 percent. Factors that resulted in longer vacancies for two or more of the projects include: unit mix, floor level, road proximity and length of tenancy for the tenant moving out. Factors resulting in shorter vacancies include: corner position in the building and relatively larger size of the apartment.

Research limitations/implications

The geography of the study is limited to Washington State in the USA. However, the case study projects represent three metropolitan statistical areas, with distinct climates and economic conditions. There are limitations to the stepwise analysis method because the degrees of freedom limit the complexity of models that can be estimated.

Practical implications

This paper highlights influences on vacancy duration and proposes conceptual models for measuring the periods of vacancy duration.

Social implications

Through this study, architectural contributions to vacancy were uncovered and tested so that subsidized housing, a public good, can be distributed more efficiently.

Originality/value

This research is the first known study to compare vacancy durations on a unit-by-unit basis.

Details

Property Management, vol. 37 no. 3
Type: Research Article
ISSN: 0263-7472

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Article

Simon Siggelsten, Birgitta Nordquist and Stefan Olander

Individual metering and charging (IMC) allows energy costs to be apportioned among tenants in multi-apartment buildings based on their own energy use. This can result in…

Abstract

Individual metering and charging (IMC) allows energy costs to be apportioned among tenants in multi-apartment buildings based on their own energy use. This can result in reduced energy use due to an increased saving behaviour by tenants, which has caught the attention of the European Parliament. In the EU-directive 2012/27/EU there is a requirement for IMC to be installed by December 31, 2016 in multi-apartment buildings.

Two techniques are mentioned in the directive for IMC: individual consumption meters and individual heat cost allocators. Either of these two techniques can be used as a method to measure the supplied energy to an apartment. Another method, not mentioned in the EU-directive, is temperature metering which means that the heating cost is instead based on measurements of the actual temperatures through sensors in certain locations in the apartment. However, some shortcomings have been identified with the aforementioned methods.

The purpose of this study is to investigate how internal heat production, solar radiation, an apartment’s location within the building and local defects in the building envelope affect the accuracy of IMC. The Energy demands of three apartments in different locations within the building have been simulated in the computer program VIP-Energy. The results of energy calculations prove that the accuracy of IMC is highly questionable in some of the investigated cases. The implication of the study is that it is difficult to measure the actual heat used for an individual apartment, which obstructs accurate and fair apportioning of heating costs among individual tenants.

Details

Open House International, vol. 39 no. 2
Type: Research Article
ISSN: 0168-2601

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Article

Andi Nidaul Hasanah and Muhammad Halley Yudhistira

Landscape view is a crucial factor in house-buying decisions. Landscape views provide an amenity to residents, and this can influence the house or apartment owners in…

Abstract

Purpose

Landscape view is a crucial factor in house-buying decisions. Landscape views provide an amenity to residents, and this can influence the house or apartment owners in their residence decisions. Yet, the relative value of different types of view potentially differs. Additionally, the value of each type of view may differ depending on an apartment’s elevation above the ground level. In this study, the authors aim to estimate the value of landscape views on apartment prices in major urban areas in Indonesia.

Design/methodology/approach

This paper evaluates to what extent various landscape views including mountain, sea, river, lake, street, urban village, garden and sports center views affect apartment prices in major urban areas in Indonesia. Two hedonic regression approaches are used: ordinary least squares and semiparametric regression. The latter is used to accommodate a possible non-linearity in the relationship between price and apartment characteristics. The model also incorporates housing and locational characteristics as control variables.

Findings

Using online apartment market data, the estimates in this paper show some degree of heterogeneity in the value of various views to the extent of providing negative externalities. Mountain, street and sports center views are associated with higher apartment prices. Sea, lake and garden views are statistically insignificant in explaining the prices. In contrast, the unappealing nature of the rivers and their surrounding creates a negative impact on prices. The estimates also suggest that an apartment’s floor height plays a significant role in the valuation of views.

Originality/value

There is little research on landscape view effects on apartment prices, especially in Indonesia. In addition, the relationship between the value of views and height preferences has seldom been analyzed. This paper provides the valuation of an extensive list of landscape views in urban areas in Indonesia. The estimation results also suggest that the value of views may differ depending on the floor on which an apartment lies.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 4
Type: Research Article
ISSN: 1753-8270

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Article

Tuulia Puustinen, Kyösti Pennanen, Heidi Falkenbach, Anne Arvola and Kauko Viitanen

The purpose of this paper is to study views of owner-occupiers concerning infill development as a mechanism for financing major repairs in apartment buildings and…

Abstract

Purpose

The purpose of this paper is to study views of owner-occupiers concerning infill development as a mechanism for financing major repairs in apartment buildings and financial benefits they require from the infill development for accepting it near their homes (on the plot of their housing company).

Design/methodology/approach

The data used draws upon a survey of 894 respondents concerning residents’ views on infill development in Finland. The required financial benefits from the infill development were questioned in both relative proportions of the expenses related to major repairs and concrete monetary sums.

Findings

First, the findings indicate that the financial benefits owner-occupiers require in order to accept infill development are significant, covering about two-thirds of the costs of major repairs during following ten years or over 75 percent of an (imagined) upcoming pipeline repair. Second, approximately one-fifth of the respondents regard that no economic benefit is enough to make them support infill development. Third, people’s decision-making concerning infill development is complex, involving also many other factors than monetary.

Practical implications

This paper provides insight into the feasibility of infill development as a means to finance major repairs from the perspective of owner-occupiers. The paper has strong policy implications as it highlights the significance of the public authorities and their policies in enabling the infill development.

Originality/value

This is the first academic study to focus on owner-occupiers views and financial requirements for the infill development as a means to finance major repairs in apartment buildings.

Details

Property Management, vol. 35 no. 5
Type: Research Article
ISSN: 0263-7472

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Article

Paul S. Marshall, Larissa S. Kyj and Myroslaw J. Kyj

Reviews the history of privatization of residential real estate and the development of an embryonic real estate marketing system in Kiev, Ukraine. These changes since the…

Abstract

Reviews the history of privatization of residential real estate and the development of an embryonic real estate marketing system in Kiev, Ukraine. These changes since the fall of communism partially explain reported differences and similarities in rents and values in Kiev when compared with Philadelphia in the USA. In general, residential values are very high in central Kiev, an area influenced by substantial inflows of Western governmental and business demand. On the other hand, prices and rents per square foot are very low by Philadelphian standards in all other areas of Kiev. An inefficient marketing system may explain the much larger variations that seem to exist in all ratios studied in Kiev compared with Philadelphia.

Details

Journal of Property Finance, vol. 7 no. 3
Type: Research Article
ISSN: 0958-868X

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Article

Pierluigi Morano and Francesco Tajani

This paper aims to deal with the sale of the bare ownership subject to the lifetime usufruct to the seller as an alternative channel for housing investments in Italian…

Abstract

Purpose

This paper aims to deal with the sale of the bare ownership subject to the lifetime usufruct to the seller as an alternative channel for housing investments in Italian cities. The first aim of the study is to understand in greater detail the bare ownership market while also stimulating the interest of researchers in this segment of the housing market that up until now has been marginally analyzed so far. The second aim is to make the estimation of the bare ownership easier and more reliable for market investors and institutions. The third aim is to quantify on the markets investigated in this paper, the “actual” appraisal coefficients for the usufructuary presence, as well as compare these coefficients with the ones set for tax purposes to highlight either the concordance or discordance.

Design/methodology/approach

A hedonic price model is developed, with which it is possible to evaluate the market price of the bare ownership as a function of the determinants of value in the market segments in question, in particular the life expectancy of the usufructuary.

Findings

Through the hedonic models defined in this work, it is possible to appraise the market value of the bare ownership of residential flats in a building located in the same districts overcoming the limitations of the procedures currently used. Comparing the appraisal coefficients for the usufructuary presence estimated through the hedonic models defined in this work, with the legally defined coefficients applied countrywide for tax purpose, it is possible to conclude that the latter markedly underestimate the market value of bare ownership, thereby leading to fiscal iniquities and substantial social costs.

Research limitations/implications

It has not been possible to know the gender of the usufructuary. Rather limited size of the apartment sales samples.

Practical implications

The bare ownership market is currently an important sector that deserves greater attention from the institutions, market investors and real estate research. The model developed allows to estimate the “actual” coefficients for the determination of the market value of the bare ownership of residential units.

Originality/value

There are currently no studies nor descriptive investigations relating to either the bare ownership market segments or recent cases of estimates. The present study is the first in current literature that both systematically deals with the quantification of the “actual” appraisal coefficients for the usufructuary presence, as well as compares these coefficients with the ones set for tax purposes.

Details

International Journal of Housing Markets and Analysis, vol. 9 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

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Article

Erin A. Hopkins and Jennifer H. Van Mullekom

As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of…

Abstract

Purpose

As the green economic bottom line is a strong motivating force when deciding to build, manage and/or operate green, this study aims to examine the financial impacts of green certifications on multifamily rental communities.

Design/methodology/approach

Using a multiple regression methodology, operating financial variables are examined.

Findings

Multifamily rental green buildings garner not only higher rental collections but also higher total expenses. When applying these higher rates to properties, the overall increase in rents outweighs the increases in total expenses.

Originality/value

While multiple studies have focused on the office sector, this study begins to fill the literature gap within the multifamily rental sector regarding the economic impacts of green-certified buildings. The outcomes of this study have positive implications for the multifamily real estate industry by providing developers, owners, managers and related parties with a better understanding of the financial impacts of multifamily rental green buildings; however, more research is needed.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 5
Type: Research Article
ISSN: 1753-8270

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Article

Miroslaw Belej and Sally Sims

Climatic conditions in Poland vary tremendously each year with temperatures exceeding 25°C in the summer and sub‐zero in the winter. Therefore the provision of adequate…

Abstract

Purpose

Climatic conditions in Poland vary tremendously each year with temperatures exceeding 25°C in the summer and sub‐zero in the winter. Therefore the provision of adequate heating and cooling in residential, public and industrial buildings is essential. Poland has recently embarked on a refurbishment process known as “thermomodernisation”, which focuses on improving buildings' thermal and energy efficiency. This paper aims to present the results from a case study of refurbished apartments in Olsztyn, Poland, to determine whether this process increases market value.

Design/methodology/approach

The research focuses on property in Olsztyn, Poland where residential property is typically situated in apartments within high‐rise and low‐rise buildings.

Findings

The majority of housing stock in Poland was built during the 1970s to 1990s when the thermal properties of building materials were not considered in the construction process, the thermal performance in most residential buildings is very low and heating costs unacceptably high. The results suggest both occupiers and professionals consider thermomodernisation benefits the occupiers by reducing energy and maintenance costs and improving the amenity value of a home. However, whilst both thought that property value was increased this increase was not significant.

Practical implications

This paper provides information on the financial benefits to the occupier from “thermodernistion”, and encourages professionals to highlight these benefits when marketing property.

Originality/value

No published research has explored this issue. This paper addresses this situation.

Details

Property Management, vol. 28 no. 5
Type: Research Article
ISSN: 0263-7472

Keywords

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Book part

Christian Stohr

This chapter does three things. First, it estimates regional gross domestic product (GDP) for three different geographical levels in Switzerland (97 micro regions, 16…

Abstract

This chapter does three things. First, it estimates regional gross domestic product (GDP) for three different geographical levels in Switzerland (97 micro regions, 16 labor market basins, and 3 large regions). Second, it analyzes the evolution of regional inequality relying on a heuristic model inspired by Williamson (1965), which features an initial growth impulse in one or several core regions and subsequent diffusion. Third, it uses index number theory to decompose regional inequality into three different effects: sectoral structure, productivity, and comparative advantage.

The results can be summarized as follows: As a consequence of the existence of multiple core regions, Swiss regional inequality has been comparatively low at higher geographical levels. Spatial diffusion of economic growth occurred across different parts of the country and within different labor market regions. This resulted in a bell-shaped evolution of regional inequality at the micro regional level and convergence at higher geographical levels. In early and in late stages of the development process, productivity differentials were the main drivers of inequality, whereas economic structure was determinant between 1888 and 1941. The poorest regions suffered from comparative disadvantage, that is, they were specialized in the vary sector (agriculture), where their relative productivity was comparatively lowest.

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