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Article
Publication date: 1 April 2014

Peter Rossini and Valerie Kupke

The purpose of this paper is to address a key issue fundamental to the operation of land and housing markets, that is, the relationship between land and house prices. The…

Abstract

Purpose

The purpose of this paper is to address a key issue fundamental to the operation of land and housing markets, that is, the relationship between land and house prices. The study identifies possible causation between established house and vacant allotment prices using the metropolitan area of Adelaide, Australia as a case study.

Design/methodology/approach

A key outcome of the study is the construction of a Site Adjusted Land Price Index against which a Quality Adjusted House Price Index is compared.

Findings

The results show that there is a lagged effect of land prices on house prices and that this is significant at an interval of eight lag periods. The results also imply that the lead lag relationship between established house and vacant allotment prices is not unidirectional. This suggests that, while a change in house prices leads to a change in land prices in the short-run, the long-run position is for increasing land prices to lead to a delayed increase in house prices.

Research limitations/implications

Rising house prices do not simply and solely reflect a shortage of land. There are suggested effects both immediate from house to land and delayed from land to house, particularly in a rising market.

Originality/value

The lead lag relationships of both indexes are tested using Granger causality estimates to assess whether theoretical Ricardian concepts still hold in a modern urban land market.

Details

International Journal of Managerial Finance, vol. 10 no. 2
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 1 September 2005

Peter Rossini, Paul Kershaw, Wayne Marano and Valerie Kupke

This study seeks to determine an appropriate form of yield analysis as a means of improving the supply of low cost rental housing within Australia.

Abstract

Purpose

This study seeks to determine an appropriate form of yield analysis as a means of improving the supply of low cost rental housing within Australia.

Design/methodology/approach

Rental returns are quantified on a disaggregated basis based on the amalgamation of three major government property databases.

Findings

Much of the information on returns in low cost rental housing is based on erroneous assumptions. More accurate reporting of returns would put in place the appropriate risk premium for investment in low cost rental housing.

Originality/value

The study adds value by allowing policy makers to better understand the nature of returns required to increase the level of investment in the low cost end of the private rental market.

Details

Property Management, vol. 23 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

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Article
Publication date: 29 July 2014

Valerie Kupke, Peter Rossini and Paul Kershaw

The purpose of this paper is to evaluate the effectiveness of this legislative reform in the state of South Australia (SA) through an examination of the relationship…

Abstract

Purpose

The purpose of this paper is to evaluate the effectiveness of this legislative reform in the state of South Australia (SA) through an examination of the relationship between listed or advertised price and transaction prices before and after the changes in regulation. Between 2000 and 2008, legislative changes took place throughout Australia to make real-estate transactions more transparent and to deal with misleading conduct by real-estate agents. The practice of “charm” or “bait” pricing was targeted. This denotes the under-quoting of estimated selling prices in real-estate sale advertisements which can be considered deceptive or even fraudulent.

Design/methodology/approach

The study area is Adelaide, the state capital of SA and includes analysis of first and last advertised prices and eventual selling price for > 120,000 residential sales transactions over a nine-year period between 2003 and 2011. The analysis to test these hypotheses included, first, a descriptive evaluation of the percentage price difference over time and a spatial breakdown of mean percentage price difference before and after legislation. Second, for each hypothesis, the change was tested by measuring the variance of the percentage change, with significance established through the Levene and Brown–Forsythe tests, rather than by the mean percentage change.

Findings

The results, both descriptive and statistical, support the effectiveness of the reform in legislation.

Research limitations/implications

The study has application in terms of agents as social gatekeepers and confirms the role of regulation to ensure market values are achieved and consumers not disadvantaged. With friction in the market, imperfect information and the possible behavioural responses of land agents, there may be incomplete market correction of underpricing strategies. This paper confirms the effectiveness of one such market intervention.

Social implications

Some half a million dwellings are purchased in Australia every year. Annually, in the state of SA, some 53,000 dwellings are financed to be purchased or built. These levels of purchase reflect national home ownership rates of about 69 per cent, with some 33 per cent of Australians owning their houses outright and a growing number, some 36 per cent, owners with a mortgage. Australian households also move house relatively frequently. In 2008, 43 per cent of Australians reported moving in the previous 5 years, 15 per cent had moved 3 or more times. The most common reasons for moving were twofold, either to buy a house or to buy a bigger house. These levels of purchase, home ownership and mobility underpin the importance and viability of some 10,000 real-estate services businesses in Australia; a sector which, up to 2,000, was largely self-regulated.

Originality/value

This paper is one of the first in Australia to effectively quantify the success of legislative reform on residential agency behaviour.

Details

International Journal of Housing Markets and Analysis, vol. 7 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

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Article
Publication date: 2 March 2015

Peter Rossini and Valerie Kupke

This paper aims to show how social and economic differentiation that has become a feature of Australian cities and the urban housing literature emphasises the value in…

Abstract

Purpose

This paper aims to show how social and economic differentiation that has become a feature of Australian cities and the urban housing literature emphasises the value in understanding such differentiation as an explanation of housing demand.

Design/methodology/approach

Using a consistent set of variables from the 2011 ABS Census of Housing and Population, this paper uses factor analysis to identify the socio spatial substructure of housing markets at suburb level for five mainland Australian cities.

Findings

The relative importance of this socio substructure in explaining median house price is determined for each city. The paper also identifies where the socio spatial structure is mismatched against expected house price and an explanation is offered for these anomalies.

Originality/value

The study is innovative in that it reveals, at suburb level, districts in each city where there is a marked divergence between the prices being paid for property and the socioeconomic makeup of the local community.

Details

International Journal of Housing Markets and Analysis, vol. 8 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

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Article
Publication date: 22 June 2012

Valerie Kupke, Peter Rossini and Stanley McGreal

The introduction of higher density housing development within suburban areas has been favoured by state governments in Australia as a means of improving the efficiency of…

Abstract

Purpose

The introduction of higher density housing development within suburban areas has been favoured by state governments in Australia as a means of improving the efficiency of land use, reducing the costs associated with the delivery of government services and promoting home ownership. However it has been hypothesised that such development may have a negative impact on neighbourhood social structure, for example reducing diversity as measured by economic status and family makeup or in local housing market performance as measured by price. This paper aims to test this hypothesis.

Design/methodology/approach

The methodology employs a quantitative approach with principal components analysis used to capture the main social structure of the Adelaide Statistical Division. Social constructs, the product of principal components analysis, are used to measure outcomes of higher density development as measured by community or household change.

Findings

The results in this paper show that densification has had significant impact on certain neighbourhoods in the Adelaide Statistical Division notably in relation to their built form but not necessarily in neighbourhood structure or housing market performance.

Research limitations/implications

The findings are significant in highlighting that increasing medium densities and improving tenure mix may not necessarily improve the opportunities for socio‐economic mix or for cultural diversity with implications for policy makers seeking to follow strategies based on the promotion of mixed communities.

Originality/value

This paper seeks to add new research on the outcomes of higher density development in Australia in three ways. First, social constructs, the product of principal components analysis, are used to measure outcomes of higher density development as measured by community or household change. Second, the paper investigates the development at the local level where impacts are likely to be most important. Third, the analysis identifies a before and after scenario for those suburbs where higher density development has been most significant.

Details

Property Management, vol. 30 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

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Article
Publication date: 16 August 2011

Valerie Kupke and Peter Rossini

This paper seeks to examine the opportunity for home ownership by first‐time buyers who are in occupations defined in the UK literature as key workers within four state…

Abstract

Purpose

This paper seeks to examine the opportunity for home ownership by first‐time buyers who are in occupations defined in the UK literature as key workers within four state capitals in Australia: Adelaide, Melbourne, Sydney, and Brisbane. Many of these workers are moderate or average income earners who deliver essential community services such as health, social services, education, safety and emergency services. This paper aims to explore access to home ownership for these workers for 2001 and 2009, a period which included the introduction and reintroduction of increased Australian government grants to first home buyers.

Design/methodology/approach

The study determines, for each year, the zones of each city able to be afforded on a moderate single income as well as the percentage of suburbs able to be afforded by key workers.

Findings

The paper identifies the pressure for multiple incomes in order to purchase as well as discussing the commuting distances some workers in Adelaide and Sydney may have to accommodate in order to afford a home.

Originality/value

The paper follows up 2001 work, conducted in Australia, on housing affordability for moderate income earners. Housing affordability continues to be a key housing issue in Australia, especially for first home buyers.

Details

Property Management, vol. 29 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Content available
Article
Publication date: 11 February 2014

Abstract

Details

Property Management, vol. 32 no. 1
Type: Research Article
ISSN: 0263-7472

Content available
Article
Publication date: 1 December 2001

Abstract

Details

Property Management, vol. 19 no. 5
Type: Research Article
ISSN: 0263-7472

Content available
Article
Publication date: 1 December 2001

Abstract

Details

Journal of Property Investment & Finance, vol. 19 no. 6
Type: Research Article
ISSN: 1463-578X

Content available
Article
Publication date: 1 December 2000

Professor Graeme Newell

Abstract

Details

Journal of Property Investment & Finance, vol. 18 no. 6
Type: Research Article
ISSN: 1463-578X

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