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Article
Publication date: 31 May 2011

Bob Hargreaves

Private sector residential property investors aiming to achieve optimal total returns need to be able to identify the best performing suburbs in a city. The purpose of this paper…

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Abstract

Purpose

Private sector residential property investors aiming to achieve optimal total returns need to be able to identify the best performing suburbs in a city. The purpose of this paper is to analyse the risk‐adjusted investment performance of 19 suburbs within Auckland City and provide some insight into the likely future performance of some of these suburbs.

Design/methodology/approach

The annual pre‐tax and unleveraged investment performance of a residential property is a function of the changes in the value of the property plus the net yield. House price data for the suburbs were taken from the Real Estate Institute of New Zealand. Rental information was obtained from the Department of Building and Housing.

Findings

Surprisingly, the suburb showing the highest average yields was also the suburb recording the greatest increase in house prices. This result appears to be a consequence of government intervention in the form of increased rental subsidies for renters, tax concessions for landlords and low‐deposit home loans aimed for first home buyers.

Research limitations/implications

It is all very well analysing the past performance of suburbs but investors are likely to be more interested in future performance, rather than past performance, when they make buying and selling decisions. In some cases, the characteristics of suburbs that have done well in the past can be useful in identifying suburbs likely to do well in the future.

Practical implications

The hypothesis advanced in this paper is that suburbs with lower than average household income to house price ratios and house income to rent ratios, combined with a trend for household incomes and rents to be increasing above the city‐wide average, are likely to be the best prospects for future residential investment.

Social implications

The main social implication appears to be the unintended consequences of rental subsidies increasing rents and house prices more than the average in the lower priced suburbs.

Originality/value

There has been very little published work comparing total returns on investor housing within a city, by suburb. This has been made possible by the combination of real estate sales information and a comprehensive rental database. In addition, census information on households' incomes at suburban level is also integrated into the study.The study also makes a novel contribution by suggesting variables likely to influence future total returns by suburb.

Details

International Journal of Housing Markets and Analysis, vol. 4 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 11 October 2011

Deborah Levy and Christina K.C. Lee

Previous research suggests that household location choice is determined by factors, such as affordability, family life cycle, distance from work and accessibility to the city…

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Abstract

Purpose

Previous research suggests that household location choice is determined by factors, such as affordability, family life cycle, distance from work and accessibility to the city centre. The purpose of this paper is to understand other psychological factors that may influence this decision, and specifically the effects of self identity and neighbourhood identity.

Design/methodology/approach

A qualitative methodology using an interpretive approach is adopted, seeking to understand the complex nature of reality. In‐depth interviews were carried out with eight experienced real estate agents working in two affluent suburbs close to Auckland's central business district in New Zealand.

Findings

Findings suggest that, subject to factors such as affordability and availability of appropriate accommodation, individual identity and suburb identity play an important role in determining neighbourhood choice. In addition to these findings, the paper proposes a conceptual model of the construction and manifestation of suburb identity incorporating both the results of the study and an understanding of the extant literature.

Research limitations/implications

The study is not an attempt to generalise its results and therefore further research into neighbourhood branding and how it links to suburb choice is recommended

Social implications

The study also adds a further behavioural dimension to the understanding of a collective interpretation of cities. Since part of the unique character of a city is reflected through its residents, planners need to understand what attracts different types of people to a city.

Originality/value

Whilst preliminary, the implications of this study emphasise the importance for valuers and real estate agents of understanding the type of people who are attracted to particular neighbourhoods, how these individuals perceive themselves and why they are attracted to specific locations.

Details

Journal of Place Management and Development, vol. 4 no. 3
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 14 November 2017

Jay Peter Blake and Behrooz Gharleghi

The purpose of this study is to investigate the Ripple Effect of house prices at an inter-suburban level of analysis in the Sydney metropolitan area. By doing this, more practical…

Abstract

Purpose

The purpose of this study is to investigate the Ripple Effect of house prices at an inter-suburban level of analysis in the Sydney metropolitan area. By doing this, more practical information of price transmission can be provided to improve residential real estate purchasing decisions of market participants. Equity from residential real estate is a major component of household wealth and is frequently used to improve and upgrade homes. With the ever-increasing prices of real estate in Sydney making more efficient purchasing decisions can grow this wealth quicker allowing a household to obtain financial related goals at a quicker pace.

Design/methodology/approach

Using a two-stage sampling technique strings of adjoining suburbs from different Sydney regions were analysed using a combination of price graphs, Engle–Granger and Johansen co-integration techniques and Granger causality tests.

Findings

Pairwise co-integration was lacking throughout the various suburb strings, whereas multivariate co-integration was found in the lower priced areas further from the central business district, as these areas also experience less price volatility. The geographical location of suburbs therefore plays an important role in the ability to predict an individual suburb’s price movements. For a prominent Ripple Effect to exist at this level the best conditions would consist of a singular demand centre with restricted geographical space to which this demand can spread. Causal pathways were subsequently mapped for each suburb string identifying price transmission pathways and confirming support that while the standard Ripple Effect does not exist at an inter-suburban level, it is still possible to predict price movements by considering the price behaviour of surrounding suburbs.

Originality/value

This paper adds to the literature by examining the Ripple Effect across different suburbs in Sydney. This is done via an extensive search through the literature and analysing recent real estate data.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 16 March 2015

Qiang (Steven) Lu and Yupin Yang

The purpose of this paper is to examine the impact of the Sydney 2000 Olympic Games on the residential real estate markets of the host city during the bidding, pre-Olympic and…

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Abstract

Purpose

The purpose of this paper is to examine the impact of the Sydney 2000 Olympic Games on the residential real estate markets of the host city during the bidding, pre-Olympic and post-Olympic periods.

Design/methodology/approach

This study uses a difference-in-differences model to analyze the transaction prices for all properties in New South Wales, Australia for the period from 1980 to 2007.

Findings

The paper finds that the impact on real estate markets varies across different suburbs in the host city and over time. The real estate markets of host suburbs experience substantially higher growth during the bidding and pre-Olympic periods but not during the post-Olympic period. However, the property prices in non-host suburbs in the host city increase at a higher rate during the pre- and post-Olympic periods but not during the bidding period.

Originality/value

This study offers insights into the long-term impact of the Olympic Games on host suburbs and non-host suburbs in the host city during different periods by analyzing a large longitudinal data set over a period of 27 years.

Details

International Journal of Event and Festival Management, vol. 6 no. 1
Type: Research Article
ISSN: 1758-2954

Keywords

Article
Publication date: 21 November 2008

Michael Rehm and Olga Filippova

The purpose of this paper is to explore and quantify the impact of geographically defined school zones on house prices in New Zealand.

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Abstract

Purpose

The purpose of this paper is to explore and quantify the impact of geographically defined school zones on house prices in New Zealand.

Design/methodology/approach

This paper develops a series of hedonic pricing models to analyse 10,000 house sales transactions over a 21‐year period within a compact group of inner Auckland suburbs, which represents the epicentre of the school zoning debate in New Zealand. The study diverts from past research, which mainly focuses on school quality measures such as standardised test scores, and instead analyses the comprehensive price impacts of access to popular state schools. Its unique approach employs a geographic information system to divide the study area into effective school zones and then further subdivide into suburbs, thus offering a vital indicator of internal validity.

Findings

The study's findings indicate that the influence of school zoning on house prices is not uniform and the variation in price effects is largely a function of the uncertainty of future zone boundary definitions. Although some “in‐zone” suburbs have enjoyed accelerated house price growth following the reintroduction of zoning in 2000, peripheral suburbs’ price premiums have diminished.

Originality/value

In contrast to standard hedonic studies on school quality, this paper offers an innovative approach that integrates geography to solve what is essentially a spatial economic problem.

Details

International Journal of Housing Markets and Analysis, vol. 1 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 27 September 2021

Morteza Moallemi, Daniel Melser, Ashton de Silva and Xiaoyan Chen

The purpose of this paper is on developing and implementing a model which provides a fuller and more comprehensive reflection of the interaction of house prices at the suburb…

Abstract

Purpose

The purpose of this paper is on developing and implementing a model which provides a fuller and more comprehensive reflection of the interaction of house prices at the suburb level.

Design/methodology/approach

The authors examine how changes in housing prices evolve across space within the suburban context. In doing so, the authors developed a model which allows for suburbs to be connected both because of their geographic proximity but also by non-spatial factors, such as similarities in socioeconomic or demographic characteristics. This approach is applied to modelling home price dynamics in Melbourne, Australia, from 2007 to 2018.

Findings

The authors found that including both spatial and non-spatial linkages between suburbs provides a better representation of the data. It also provides new insights into the way spatial shocks are transmitted around the city and how suburban housing markets are clustered.

Originality/value

The authors have generalized the widely used SAR model and advocated building a spatial weights matrix that allows for both geographic and socioeconomic linkages between suburbs within the HOSAR framework. As the authors outlined, such a model can be easily estimated using maximum likelihood. The benefits of such a model are that it yields an improved fit to the data and more accurate spatial spill-over estimates.

Details

International Journal of Housing Markets and Analysis, vol. 15 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 3 January 2022

Reza Tajaddini, Hassan F. Gholipour and Amir Arjomandi

The purpose of this study is to explain the potential long-term impacts of working from home on housing wealth inequality in large cities of advanced economies.

Abstract

Purpose

The purpose of this study is to explain the potential long-term impacts of working from home on housing wealth inequality in large cities of advanced economies.

Design/methodology/approach

This study is descriptive research and It supports the arguments by providing some emerging evidence from property markets in developed countries.

Findings

The authors argue that due to the unique nature of the COVID-19 crisis, it will have a different and long-term impact on housing wealth inequality. Changes in the working arrangements of many professionals will change the housing demand dynamic across different suburbs and may lead to a reduction of the housing wealth gap in the long term. In this paper, the authors propose five mechanisms that may impact housing wealth inequality.

Research limitations/implications

Long-term data is required to test the proposed conceptual model in this study and the effect of the COVID-19 pandemic on housing wealth across and within suburbs of large cities.

Practical implications

Policymakers and regulators may benefit from the discussions and suggestions provided in this study and consider the proposed avenues on how new changes in the working environment (remote working) may result in a reduction of housing wealth inequality.

Originality/value

This study presents a new perspective about the potential long-term impacts of working from home that is posed by the COVID-19 pandemic on housing wealth inequality in large cities of developed economies.

Details

International Journal of Housing Markets and Analysis, vol. 16 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 19 October 2010

Hugh Bartling

The purpose of this paper is to examine the ways in which suburban governments contend with market and citizen pressures to influence land use policy.

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Abstract

Purpose

The purpose of this paper is to examine the ways in which suburban governments contend with market and citizen pressures to influence land use policy.

Design/methodology/approach

The paper utilizes a comparative case study approach by analyzing primary documents and conducting open‐ended interviews.

Findings

It can be argued that the historical context of suburban development, the cultural conceptions of suburbia, and the extent of civil society's participation in decision making are important factors in understanding how suburbs are dealing with growth challenges.

Practical implications

The cases studied here likely have attributes that are typical of other suburbs in North America.

Originality/value

The paper emphasizes the importance of cultural conceptions of the landscape in influencing stakeholder attitudes – an element often neglected in public policy analysis.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 4 no. 4
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 14 February 2018

Xin Janet Ge

This paper aims to investigate the factors that contribute to the changes of house prices including ethnic factors. Australia is a multicultural country with diversified…

Abstract

Purpose

This paper aims to investigate the factors that contribute to the changes of house prices including ethnic factors. Australia is a multicultural country with diversified ethnicities. The median price of established houses (unstratified) in Sydney has reached a new record high of $910,000 in December 2015, increasing around 58.2 per cent from March 2011 [Australian Bureau of Statistics (ABS), 2015a]. However, the prices of some suburbs have increased more than prices of others.

Design/methodology/approach

Six suburbs that represent ethnic majority originally including White, India and China will be selected as pilot studies. Hedonic regression analysis will be applied for the analysis based on 2001, 2006 and 2011 census data.

Findings

It is found that the main drivers of house prices are the dwelling physical characteristics and accessibility to convenient transportation. The level of household income also plays an important role. However, the impact of changes of ethnic on changes of prices is not significant.

Research limitations/implications

The study adds to the growing literature on the ethnicity changes on dwelling prices and is important for understanding whether some of the clusters of ethnic concentration or segregation effects property markets. This study is significant in its understanding of the main characteristics of ethnic changes of suburbs in Sydney.

Practical implications

An implication is that policy makers can attract different ethnic groups and encourage multicultural communities when they formulate housing and planning policies.

Originality/value

The relationship between ethnicity and house price appreciation is not extensively studied in Australia. This research contributes to the literature on the effects of ethnic changes on house prices and implications of policy formulation to encourage multicultural communities.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 23 August 2013

Ian Smith, Katie Williams, Diane Hopkins, Jennifer Joynt, Catherine Payne and Rajat Gupta

This paper presents new research on the potential pathways for integrated adaptation that could make England's suburbs more resilient to future climate conditions. It focuses on…

Abstract

Purpose

This paper presents new research on the potential pathways for integrated adaptation that could make England's suburbs more resilient to future climate conditions. It focuses on the role of central government, local agencies and householders in making adaptations to the built and natural environment.

Design/methodology

This paper uses evidence from three facilitated workshops run with built environment and policy professionals associated with climate change adaptation in three cities in England: Oxford, Bristol and Stockport. The workshop contributions are presented in relation to the potential role that central government, local agencies and residents could play in adapting suburbs.

Findings

Central government, local agencies and householders form an interconnected network of agents responsible for adaptive action in suburbs. Professional and institutional stakeholders expect central government to take a lead and ensure planning policies and building regulations support effective adaptation. However, those local authorities and agencies that are expected to offer leadership locally do not have the resources to make adaptation happen on the ground. Overall, the stakeholders in this research believe that effective adaptation in suburbs may only happen once householders and government have experienced worsening climatic conditions. This could be a very costly stance in the long term.

Originality/value

This paper provides empirical evidence on how stakeholders engaged in suburban adaptation are making changes now, and on how they envisage change in the future. It reveals clearly the challenges involved in integrating mitigation and adaptation actions and highlight the complexities around implementation on the ground.

Details

Structural Survey, vol. 31 no. 4
Type: Research Article
ISSN: 0263-080X

Keywords

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