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1 – 10 of 11Peter Boelhouwer and Joris Hoekstra
Every few years the planning agencies in the Netherlands draw up a prognosis for the future housing needs on the basis of economic and demographic scenarios. It is our contention…
Abstract
Every few years the planning agencies in the Netherlands draw up a prognosis for the future housing needs on the basis of economic and demographic scenarios. It is our contention that, in applying this approach, the agencies neglect to take sufficient account of the influence of cultural dynamics. Against this background, a recent recommendatory report by the Dutch Council for Housing, Spatial Planning and the Environment (VROM-raad 2009) drew attention to three socio-cultural trends which are currently manifesting themselves on the Dutch housing market:
1. A growing interest in living with like-minded people and in common-interest housing concepts;
2. The rise of transnational living (permanently or temporarily living abroad) and people having multiple residences;
3. An increasing mix of housing and other functions and services (care, energy, leisure, retail), which is opening up the housing market for new players.
This contribution explores the background and the expressions of these three trends that will have a significant influence on the demand for housing in the future, in spatial terms as well as with regard to quantity and quality. It turns out that the trends raise new dilemmas in spatial planning and housing policy. In order to solve these dilemmas, a different way of thinking is needed.
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Paul De Vries and Peter Boelhouwer
In this paper, we identify the relationship between (local) housing supply and (local) house price developments, especially in The Netherlands.
Abstract
Purpose
In this paper, we identify the relationship between (local) housing supply and (local) house price developments, especially in The Netherlands.
Design/methodology/approach
We measure the influence of new building on house prices by comparing areas designated for concentrated new building (main Dutch cities) with areas where no large housing projects are developed. On the basis of classical economic theory, if the housing market is functioning as it should, then supply will soon respond to a shock in demand and restore stability in house prices.
Findings
For the main Dutch cities, we found that an increase in supply triggers a fall in prices. In other areas the correlation coefficients are more or less zero, which can lead us to conclude that the expansion of the housing stock is market‐compliant.
Research limitations/implications
The housing market is not functioning, as it should: new supplies depend on the complex decisions of the suppliers, thus making it difficult to express statistically the causality between the house price developments and the new supplies.
Practical implications
Most studies suggest that macro data are unable to measure the true dependency between the house prices and the new building and claim at the same time that micro data sets are incomplete. Also our research was hampered by a shortage of usable data.
Originality/value
New building can push up the value of the surrounding housing because it is associated with a qualitatively better housing stock. We conclude that in regions where new building has been concentrated in designated areas, the relationship between housing production and price development is inverse.
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Job Taiwo Gbadegesin, Harry van der Heijden and Peter Boelhouwer
The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between…
Abstract
Purpose
The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between managers (agents/private rental housing providers or landlords) and end-users (tenants – rental housing consumers), with a view to identifying challenges in rental housing lease administration in Nigeria emerging rental market.
Design/methodology/approach
The quantitative data collected from practicing estate surveyor and valuers (statutorily registered agents), who manage private rental housing in their portfolios on behalf of owners and tenants, who occupy rental housing within Lagos state (the largest property market in Nigeria and West Africa). Using a theoretical model in the context of five lease agreement obligations, data collected were analyzed using descriptive and inferential statistics (one sample t-test, independent t-test and correlation).
Findings
While economic circumstances (economic factors) are considered the major vulnerable factor that cause acts of non-compliance, defiance against “covenant not- to- sublet (subletting covenant (SC))” and “prompt rental payment covenant” are the two most non-compliance attitudes (precipitation events) observed from both actors. There is correlation among all vulnerability elements and precipitating events. While a significant relationship was only observed between “SC” and all vulnerability elements on the part of agents, there is significant relationship among all the vulnerability elements and precipitating events on the part of tenants. Also, while tenants attached higher significance to all the vulnerability factors than managers, both actors attached different level of priority to precipitating events. Lastly, equitable remedies and peaceful entry are the two most adopted intervention tools.
Research limitations/implications
This paper is limited to seeking both the professional opinion of licensed/registered agents and the rental housing consumers-tenants.
Practical implications
The research points to an increasing need for the stakeholders – Estate Surveyors and Valuers Registration Board of Nigeria (a Government parastatal) and the Nigerian Institutions of Estate Surveyors and Valuers (the constituted professional body), to establish and reform the code of practice in this direction with due consideration to the factors identified in this study. Effort also should be upgraded in the intervention techniques adopted in order to improve on emerging rental market.
Originality/value
The paper explores an important aspect of lease administration in private rental housing market. It also provides platform on which the acts of defiance can be wiped out in the emerging rental market.
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Farley Ishaak, Ron van Schie, Jan de Haan and Hilde Remøy
Commercial real estate (CRE) indicators typically include asset deals and exclude share deals. This study aims to explore the phenomenon of real estate share deals and assess…
Abstract
Purpose
Commercial real estate (CRE) indicators typically include asset deals and exclude share deals. This study aims to explore the phenomenon of real estate share deals and assess whether omitting these transactions results in indicators that do not accurately reflect the market.
Design/methodology/approach
Various registers in the Netherlands were used to estimate transaction volumes, total values and price developments of both share and asset deals. Share deals are company transfers and its transactions cover more than real estate. To estimate the contribution of real estate in share deals, valuations were used.
Findings
In the Netherlands, share deals are most prominent for rental dwellings. Adding share deals to volume and value indicators seems required. In price development estimates, significant differences were found for dwellings between share and asset deals. Price indices should, therefore, also include share deals, but in practice this is difficult and has little impact on the outcomes due to the low weight of share deals.
Research limitations/implications
Legislation has a major impact on choosing a share or asset deal. The significance of share deals is expected to vary amongst countries. Performing similar research in other countries will contribute in harmonising real estate indicators.
Practical implications
Statistical agencies face many challenges in the construction of CRE indicators. This study provides statisticians knowledge that can be used to evaluate possible data gaps.
Originality/value
This is the first study to estimate indicators of real estate share deals and compare these to asset deal indicators.
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Sampa Chisumbe, Clinton Ohis Aigbavboa, Erastus Mwanaumo and Wellington Didibhuku Thwala
Chin Tiong Cheng and Gabriel Hoh Teck Ling
Increasing overhang of serviced apartments poses a serious concern to the national property market. This study aims to examine the impacts of macroeconomic determinants, namely…
Abstract
Purpose
Increasing overhang of serviced apartments poses a serious concern to the national property market. This study aims to examine the impacts of macroeconomic determinants, namely, gross domestic product (GDP), consumer confidence index (CF), existing stocks (ES), incoming supply (IS) and completed project (CP) on serviced apartment price changes.
Design/methodology/approach
To achieve more accurate, quality price changes, a serviced apartment price index (SAPI) was constructed through a self-developed hedonic price index model. This study has collected 1,567 transaction data in Kuala Lumpur, covering 2009Q1–2018Q4 for price index construction and data were analysed using the vector autoregressive model, the vector error correction model and the fully modified ordinary least squares (OLS) (FMOLS).
Findings
Results of the regression model show that only GDP, ES and IS were significantly associated with SAPI, with an R2 of 0.7, where both ES and IS have inverse relationships with SAPI. More precisely, it is predicted that the price of serviced apartments will be reduced by 0.56% and 0.21% for every 1% increase in ES and IS, respectively.
Practical implications
Therefore, government monitoring of serviced apartments’ future supply is crucial by enforcing land use-planning regulations via stricter development approval of serviced apartments to safeguard and achieve more stable property prices.
Originality/value
By adopting an innovative approach to estimating the response of price change to supply and demand in a situation where there is no price indicator for serviced apartments, the study addresses the knowledge gap, especially in terms of understanding what are the key determinants of, and to what extent they influence, the SAPI.
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Arvydas Jadevicius and Peter van Gool
This study is a practice undertaking examining three main concerns that currently dominate Dutch housing market debate: how long is the cycle, will the current house price…
Abstract
Purpose
This study is a practice undertaking examining three main concerns that currently dominate Dutch housing market debate: how long is the cycle, will the current house price inflation continue and is housing market in a bubble. With national house prices reaching record highs across all major cities, future market prospects became a topic of significant debate among policymakers, investors and the populace.
Design/methodology/approach
A triangulation of well-established academic methods is used to perform investigation. The models include Hodrick-Prescott (HP) filter, volatility autoregressive conditional heteroskedasticity (ARCH approximation) and right tail augmented Dickey–Fuller (Rtadf) test (bubble screening technique).
Findings
Interestingly, over the years from 1985 to 2019 research period, filtering extracts only one Dutch national housing cycle. This is a somewhat distinct characteristic compared to other advanced Western economies (inter alia the UK and the USA) where markets tend to experience 8- to 10-year gyrations. Volatility and Rtadf test suggest that current house prices in most Dutch cities are in excess of historical averages and statistical thresholds. House price levels in Almere, Amsterdam, The Hague, Groningen, Rotterdam and Utrecht are of particular concern.
Originality/value
Retail investors should therefore be cautious as they are entering the market at the time of elevated housing values. For institutional investors, those investing in long-term, housing in key Dutch metropolitan areas, even if values decline, is still an attractive investment conduit.
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Putri Arumsari and Hendrik Sulistio
Public-rented flats in Jakarta Province operated by the Management Unit of Public-Rented Flats (MUPRF) experienced budget cuts for the maintenance and treatment activities during…
Abstract
Purpose
Public-rented flats in Jakarta Province operated by the Management Unit of Public-Rented Flats (MUPRF) experienced budget cuts for the maintenance and treatment activities during the COVID-19 pandemic that hit Indonesia in the early 2020. Currently, the budgeting scheme of the MUPRF uses the local government’s budget in determining the expenditures of public-rented flat. This papers aims to propose an alternative budgeting scheme for the MUPRF.
Design/methodology/approach
Soft system methodology (SSM) was adopted to understand the public-rented flats as a whole system, so an alternative budgeting scheme for the MUPRF can be identified and developed. Interviews with an employee of the Department of Community Housing and Settlement of Daerah Khusus Ibukota Jakarta Province were conducted. A rich picture, customer, action, transformation, worldview, owner and environment analyses, conceptual model and a proposed model were developed during the process.
Findings
Based on the SSM, it is found that becoming a local public service agency, the MUPRF can be more independent and flexible in managing their budget. The income generated by the public-rented flats can be used directly for their expenditure.
Research limitations/implications
Through the SSM, only a conceptual model is developed, which has not yet been implemented in practice. Future studies need to be carried out to evaluate the feasibility of the conceptual model.
Originality/value
This research analyses the public-rented flat as a whole system through SSM to identify factors and parties that are involved in the daily activities in public-rented flats to propose a suitable alternative for its budgeting scheme.
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Xiaojie Xu and Yun Zhang
With the rapid-growing house market in the past decade, the purpose of this paper is to study the important issue of house price information flows among 12 major cities in China…
Abstract
Purpose
With the rapid-growing house market in the past decade, the purpose of this paper is to study the important issue of house price information flows among 12 major cities in China, including Shanghai, Beijing, Xiamen, Shenzhen, Guangzhou, Hangzhou, Ningbo, Nanjing, Zhuhai, Fuzhou, Suzhou and Dongguan, during the period of June 2010 to May 2019.
Design/methodology/approach
The authors approach this issue in both time and frequency domains, latter of which is facilitated through wavelet analysis and by exploring both linear and nonlinear causality under the vector autoregressive framework.
Findings
The main findings are threefold. First, in the long run of the time domain and for timescales beyond 16 months of the frequency domain, house prices of all cities significantly affect each other. For timescales up to 16 months, linear causality is weaker and is most often identified for the scale of four to eight months. Second, while nonlinear causality is seldom determined in the time domain and is never found for timescales up to four months, it is identified for scales beyond four months and particularly for those beyond 32 months. Third, nonlinear causality found in the frequency domain is partly explained by the volatility spillover effect.
Originality/value
Results here should be of use to policymakers in certain policy analysis.
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Lu Yang, Nannan Yuan and Shichao Hu
To explore the state of this conditional Granger causality when other cities are not factors, we investigate housing market networks in China's major cities by using a combination…
Abstract
Purpose
To explore the state of this conditional Granger causality when other cities are not factors, we investigate housing market networks in China's major cities by using a combination of conditional Granger causality and network analysis.
Design/methodology/approach
Although housing market networks have been well discussed for different countries, the question of housing market networks in China's major cities based on the conditional causality perspective has yet to be answered.
Findings
We discover that second-tier cities are more influential than first-tier cities. Although the connectivity of the primary housing market is more complex than the diversified connectivity observed in the secondary housing market, both markets are scale-free networks that exhibit high stability. Moreover, we reveal that geographic conditions and economic development jointly determine the housing market's modular hierarchical structure. Our results provide meaningful information for both Chinese policymakers and investors.
Originality/value
By excluding the influence of other cities, our conditional Granger causality identifies the true casual relation between cities' housing markets. Moreover, it is the first paper to consider the primary housing market and secondary housing market separately. Specifically, Chinese prefer new house rather than second-hand house from both speculative and self-housing. Generally speaking, the new house price is lower than the second-hand house price since the new house is off-plan property. Therefore, understanding the difference between primary and secondary housing markets will provide useful information for both policymakers and speculators.
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