scholarly journals A hedonic model of the association between grocery brand provision and residential rental prices in England

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Clark ◽  
Nick Hood ◽  
Mark Birkin
Keyword(s):  
Housing Market ◽  
Consumer Choice ◽  
Service Provision ◽  
Hedonic Model ◽  
Property Market ◽  
Content Type ◽  
Highly Sensitive ◽  
Data Source ◽  
Retail Grocery ◽  
Web Platform

Purpose This study aims to measure the association between local retail grocery provision and private residential rental prices in England. Renting is an important sector of the housing market in England and local grocery provision is an important aspect of service provision and consumers are known to be highly sensitive to the branding of this type of retailing. Design/methodology/approach This research uses a novel data source from a property rental Web platform to estimate a hedonic model for the rental market. These models incorporate information on the nature of the properties and their neighbourhoods, with an emphasis on how different retail brands are associated with rental prices. This retail brand is captured on two scales: the provision of local branded convenience stores and the provision of larger stores. Findings The study finds clear differentials in how the local grocery brand is associated with rental prices. When controlling for commonly explored confounding factors, “Luxury” retailers such as Waitrose and Marks and Spencer are associated with higher rental prices, while “Discounter” retailers are associated with lower rental prices. This finding has many implications, particularly in relation to potential price changes in an already challenging housing market for many people. Research limitations/implications This is an observational study and as such only associations (not causation) can be implied by these findings. Originality/value The focus of this research is on the private residential property market, an important market in England but one that has enjoyed less scrutiny than the sales or socially rented markets. Rather than using general accessibility to retail, this research has differentiated the association by the retail brand and store size, two very important aspects of consumer choice.

scholarly journals A Priori Spatial Segmentation of Commercial Property Market using Hedonic Price Modelling

2021 ◽  
Vol 29 (2) ◽  
pp. 16-28
Author(s):  
Hamza Usman ◽  
Mohd Lizam ◽  
Burhaida Burhan
Keyword(s):  
Housing Market ◽  
Market Segmentation ◽  
A Priori ◽  
Model Fit ◽  
Hedonic Model ◽  
Hedonic Price ◽  
Property Market ◽  
Commercial Property ◽  
Spatial Segmentation ◽  
Property Price

Abstract The improvement of property price modelling accuracy using property market segmentation approaches is well documented in the housing market. However, that cannot be said of the commercial property market which is adjudged to be volatile, heterogeneous and thinly traded. This study, therefore, determines if the commercial property market in Malaysia is spatially segmented into submarkets and whether accounting for the submarkets improves the accuracy of price modelling. Using a 11,460 shop-offices transaction dataset, the commercial property submarkets are delineated by using submarket binary dummies in the market-wide model and estimating a separate hedonic model for each submarket. The former method improves the model fit and reduces error by 5.6% and 6.5% respectively. The commercial property submarkets are better delineated by estimating a separate hedonic model for each submarket as it improves the model fit by about 7% and reduces models’ error by more than 10%. This study concludes that the Malaysian commercial property market is spatially segmented into submarkets. Modelling the submarkets improves the accuracy and correctness of price modelling.

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Lo ◽  
Michael James McCord ◽  
John McCord ◽  
Peadar Thomas Davis ◽  
Martin Haran
Keyword(s):  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Main Property ◽  
Property Market ◽  
Important Indicator ◽  
Content Type ◽  
Rental Market ◽  
Price Series ◽  
The Relationship

Purpose The price-to-rent ratio is often regarded as an important indicator for measuring housing market imbalance and inefficiency. A central question is the extent to which house prices and rents form part of the same market and thus whether they respond similarly to parallel stimulus. If they are close proxies dynamically, then this provides valuable market intelligence, particularly where causal relationships are evident. Therefore, this paper aims to examine the relationship between market and rental pricing to uncover the price switching dynamics of residential real estate property types and whether the deviation between market rents and prices are integrated over both the long- and short-term. Design/methodology/approach This paper uses cointegration, Wald exogeneity tests and Granger causality models to determine the existence, if any, of cointegration and lead-lag relationships between prices and rents within the Belfast property market, as well as the price-to-rent ratios amongst its five main property sub-markets over the time period M4, 2014 to M12 2018. Findings The findings provide some novel insights in relation to the pricing dynamics within Belfast. Housing and rental prices are cointegrated suggesting that they tend to move in tandem in the long run. It is further evident that in the short-run, the price series Granger-causes that of rents inferring that sales price information unidirectionally diffuse to the rental market. Further, the findings on price-to-rent ratios reveal that the detached sector appears to Granger-cause those of other property types except apartments in both the short- and long-term, suggesting possible spill-over of pricing signals from the top-end to the lower strata of the market. Originality/value The importance of understanding the relationship between house prices and rental market performance has gathered momentum. Although the house price-rent ratio is widely used as an indicator of over and undervaluation in the housing market, surprisingly little is known about the theoretical relationship between the price-rent ratio across property types and their respective inter-relationships.

Residential property market determinants: evidence from the 2018 Australian market downturn

2019 ◽  
Vol 38 (2) ◽  
pp. 157-175
Author(s):  
Peng Yew Wong ◽  
Woon-Weng Wong ◽  
Kwabena Mintah
Keyword(s):  
Housing Market ◽  
Economic Conditions ◽  
Residential Property ◽  
Investment Fund ◽  
Property Market ◽  
Data Set ◽  
Content Type ◽  
Econometric Methods ◽  
Residential Market ◽  
Australian Bureau Of Statistics

Purpose The purpose of this paper is to validate and uncover the key determinants revolving around the Australian residential market downturn towards the 2020s. Design/methodology/approach Applying well-established time series econometric methods over a decade of data set provided by Australian Bureau of Statistics, Reserve Bank of Australia and Real Capital Analytics, the significant and emerging drivers impacting the Australian residential property market performance are explored. Findings Besides changes in the significant levels of some key traditional market drivers, housing market capital liquidity and cross-border investment fund were found to significantly impact the Australian residential property market between 2017 and 2019. The presence of some major positive economic conditions such as low interest rate, sustainable employment and population growth was perceived inadequate to uplift the Australian residential property market. The Australian housing market has performed negatively during this period mainly due to diminishing capital liquidity, excess housing supplies and retreating foreign investors. Practical implications A better understanding of the leading and emerging determinants of the residential property market will assist the policy makers to make sound decisions and effective policy changes based on the latest development in the Australian housing market. The results also provide a meaningful path for future property investments and investigations that explore country-specific effects through a comparative analysis. Originality/value The housing market determinants examined in this study revolve around the wider economic conditions in Australia that are not new. However, the coalesce analysis on the statistical results and the current housing market trends revealed some distinguishing characteristics and developments towards the 2020s Australian residential property market downturn.

Analysis of housing prices in Petaling district, Malaysia using functional relationship model

2019 ◽  
Vol 12 (5) ◽  
pp. 884-905
Author(s):  
Yun Fah Chang ◽  
Wei Cheng Choong ◽  
Sing Yan Looi ◽  
Wei Yeing Pan ◽  
Hong Lip Goh
Keyword(s):  
Housing Market ◽  
Functional Relationship ◽  
Housing Prices ◽  
Hedonic Model ◽  
Analysis Tool ◽  
Content Type ◽  
Proposed Model ◽  
Relationship Model ◽  
Housing Attributes ◽  
House Buyers

Purpose The purpose of this paper is to analyse and predict the housing prices in Petaling district, Malaysia and its six sub-regions with a set of housing attributes using functional relationship model. Design/methodology/approach A new multiple unreplicated linear functional relationship model with both the response and explanatory variables are subject to errors is proposed. A total of 41,750 housing transacted records from November 2008 to February 2016 were used in this study. These data were divided into 70% training and 30% testing sets for each of the selected sub-regions. Individual housing price was regressed on nine housing attributes. Findings The results showed the proposed model has better fitting ability and prediction accuracy as compared to the hedonic model or multiple linear regression. The proposed model achieved at least 20% and 40% of predictions that have less than 5% and 10% deviations from the actual transacted housing prices, respectively. House buyers in these sub-regions showed similar preferences on most of the housing attributes, except for residents in Shah Alam who preferred to stay far away from shopping malls, and leasehold houses in Sri Kembangan are more valuable. From the h-nearest houses indicator, it is concluded that the housing market in Sungai Buloh is the most volatile in Petaling District. Research limitations/implications As the data used are the actual housing transaction records in Petaling District, it represents only a segment of Malaysian urban population. The result will not be generalized to the entire Malaysian population. Practical implications This study is expected to provide insights to policymakers, property developers and investors to understand the volatility of the housing market and the influence of determinants in different sub-regions. The potential house buyers could also use the model to determine if a house is overpriced. Originality/value This study introduces measurement errors into the housing attributes to provide a more reliable analysis tool for the housing market. This study is the first housing research in Malaysia that used a large number of actual housing transaction records. Previous studies relied on small survey samples.

scholarly journals The securitization of residential rental revenue streams in Europe

2017 ◽  
Vol 10 (4) ◽  
pp. 503-518 ◽  
Author(s):  
Jaume Roig Hernando
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Risk Sharing ◽  
Rental Housing ◽  
Cash Flows ◽  
Property Market ◽  
Investment Funds ◽  
Content Type ◽  
The Usa ◽  
Residential Market

Purpose The purpose of this paper is to analyze the securitization of rental streams, a new investment and finance product introduced in the USA in 2013 that enables fundraising from large residential portfolios owned by major investment funds and investment banking. The securities are made up of non-performance loans as well as real estate portfolios of financial entities. Design/methodology/approach An academic analysis of the European securitization market is performed, as well as a broad overview of the state of the art of the rental housing market and investment property market. Moreover, a market study of Real Estate Owned (hereinafter, REOs) and Real Estate Debts is carried out to determine both the present framework and future trends. Various financial entities and real estate management companies are examined through interviews and data collection to assess the reality of distressed assets and residential portfolios owned by major investors. It introduced the Broker’s Price Opinion concept, de loan-to-value concept and the London Interbank Offered Rate. Findings REO-to-rental securitization is a step forward toward the democratization of finance through the globalization of the residential market, improving risk sharing for major and retail investors. The securitization of rental streams in Europe has not taken off, despite several issuances in the USA since 2013 with significant success where first tranches obtained a credit qualification of triple-A from the majority of the main rating agencies. Originality/value At the end of 2013, a global investment firm launched an innovative finance and investment vehicle that securitized the cash flows originating from leased residential properties. That issue resulted in considerable success and in the development of a new alternative and innovative financing source for real estate activity. Taking into account that housing is a primary need of our society, there is a strong motivation for improving the residential market, and thus, REO-to-rental securitization could help take a step forward in making the housing market more efficient.

Modelling energy retrofit investments in the UK housing market

2015 ◽  
Vol 4 (3) ◽  
pp. 251-267 ◽  
Author(s):  
Hassan Adan ◽  
Franz Fuerst
Keyword(s):  
Energy Efficiency ◽  
Housing Market ◽  
Empirical Test ◽  
Investment Decision ◽  
Property Market ◽  
Content Type ◽  
Energy Efficiency Measures ◽  
Energy Retrofit ◽  
Efficiency Measures ◽  
The Uk

Purpose – Improving the energy efficiency of the existing residential building stock has been identified as a key policy aim in many countries. The purpose of this paper is to review the extant literature on investment decisions in domestic energy efficiency and presents a model that is both grounded in microeconomic theory and empirically tractable. Design/methodology/approach – This study develops a modified and extended version of an existing microeconomic model to embed the retrofit investment decision in a residential property market context, taking into account tenants’ willingness to pay and cost-reducing synergies. A simple empirical test of the link between energy efficiency measures and housing market dynamics is then conducted. Findings – The empirical data analysis for England indicates that where house prices are low, energy efficiency measures tend to increase the value of a house more in relative terms compared to higher-priced regions. Second, where housing markets are tight, landlords and sellers will be successful even without investing in energy efficiency measures. Third, where wages and incomes are low, the potential gains from energy savings make up a larger proportion of those incomes compared to more affluent regions. This, in turn, acts as a further incentive for an energy retrofit. Finally, the UK government has been operating a subsidy scheme which allows all households below a certain income threshold to have certain energy efficiency measures carried out for free. In regions, where a larger proportion of households are eligible for these subsidies,the authors also expect a larger uptake. Originality/value – While the financial metrics of retrofit measures are by now well understood, most of the existing studies tend to view these investments in isolation, not as part of a larger bundle of considerations by landlords and owners of how energy retrofits might influence a property’s rent, price and appreciation rate. In this paper, the authors argue that establishing this link is crucial for a better understanding of the retrofit investment decision.

scholarly journals Arbitrage opportunities, efficiency, and the role of risk preferences in the Hong Kong property market

2016 ◽  
Vol 33 (4) ◽  
pp. 735-754 ◽  
Author(s):  
Chun-Kei Tsang ◽  
Wing-Keung Wong ◽  
Ira Horowitz
Keyword(s):  
Hong Kong ◽  
Housing Market ◽  
Small Body ◽  
Total Yield ◽  
Risk Preference ◽  
Empirical Literature ◽  
Primary Concern ◽  
Property Market ◽  
Content Type ◽  
Arbitrage Opportunities

Purpose This paper aims to investigate how a prospective buyer’s optimal home-size purchase can be determined by means of a stochastic-dominance (SD) analysis of the historical data of Hong Kong. Design/methodology/approach By means of SD analysis, the paper uses monthly property yields in Hong Kong over a 15-year period to illustrate how buyers of different risk preference may optimize their home-size purchase. Findings Regardless of whether the buyer eschews risk, embraces risk or is indifferent to it, in any adjacent pairing of five well-defined housing classes, the smaller class provides the optimal purchase. In addition, risk-averters focusing on total yield would prefer to invest in the smallest and second-smallest classes than in the largest class. Research limitations/implications As the smaller class provides the optimal purchase, the smallest class affords the buyer the optimal purchase over all classes in this important housing market – at least where rental yields are of primary concern. Practical implications The findings suggest that in the Hong Kong housing market, long-term investors may be better off purchasing smaller homes. For other type of investors, it depends on their risk preference. Originality/value There is a very small body of empirical literature on housing investment, especially if the focus is on the optimal home-size purchase.

Investigating defiant attitudes in keeping lease agreement obligations in private rental housing market in Nigeria

2016 ◽  
Vol 34 (3) ◽  
pp. 221-246 ◽  
Author(s):  
Job Taiwo Gbadegesin ◽  
Harry van der Heijden ◽  
Peter Boelhouwer
Keyword(s):  
Housing Market ◽  
Significant Relationship ◽  
Rental Housing ◽  
Property Market ◽  
Content Type ◽  
Rental Market ◽  
Code Of Practice ◽  
Professional Body ◽  
Rental Housing Market ◽  
Lease Agreement

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.

scholarly journals Residential Property Behavior Forecasting in the Metropolitan City of Milan: Socio-Economic Characteristics as Drivers of Residential Market Value Trends

2021 ◽  
Vol 13 (7) ◽  
pp. 3612
Author(s):  
Marzia Morena ◽  
Genny Cia ◽  
Liala Baiardi ◽  
Juan Sebastián Rodríguez Rojas
Keyword(s):  
Hedonic Model ◽  
Hedonic Price ◽  
Analysis Model ◽  
Property Market ◽  
Property Development ◽  
Price Performance ◽  
Real Estate Investments ◽  
Residential Properties ◽  
Asset Class ◽  
Residential Market

The phenomenon of urbanization of cities has been the subject of numerous studies and evaluation protocols proposing to analyze the degree of economic and social sustainability of development projects. Through careful research and synthesis of the theoretical framework regarding residential properties’ performance measurement and forecasting, this paper goes deeper into the proposition of property development as an asset class that represents the biggest share of the Italian property market and yet is avoided by the big portfolios. The analysis model was applied to the city of Milan and its Metropolitan Area. The method is based on the development of correlation indices to evaluate different behaviors, through time and a Geographic Information System (GIS) based on the Hedonic Price Method (HPM). Results from a hedonic model estimated for several recent years suggest that, depending on the particular view, the relation between the rent/price performance and the different external and intrinsic variables can represent a useful parameter for evaluating the feasibility of different real estate investments.

A biomimetic 3D airflow sensor made of an array of two piezoelectric metal-core fibers

Sensor Review ◽  
2017 ◽  
Vol 37 (3) ◽  
pp. 312-321 ◽  
Author(s):  
Yixiang Bian ◽  
Can He ◽  
Kaixuan Sun ◽  
Longchao Dai ◽  
Hui Shen ◽  
...  
Keyword(s):  
Design Methodology ◽  
Spherical Surface ◽  
Three Dimensional ◽  
Three Dimensions ◽  
Piezoceramic Cylinder ◽  
Metal Core ◽  
Content Type ◽  
3D Space ◽  
Highly Sensitive ◽  
Airflow Sensor

Purpose The purpose of this paper is to design and fabricate a three-dimensional (3D) bionic airflow sensing array made of two multi-electrode piezoelectric metal-core fibers (MPMFs), inspired by the structure of a cricket’s highly sensitive airflow receptor (consisting of two cerci). Design/methodology/approach A metal core was positioned at the center of an MPMF and surrounded by a hollow piezoceramic cylinder. Four thin metal films were spray-coated symmetrically on the surface of the fiber that could be used as two pairs of sensor electrodes. Findings In 3D space, four output signals of the two MPMFs arrays can form three “8”-shaped spheres. Similarly, the sensing signals for the same airflow are located on a spherical surface. Originality/value Two MPMF arrays are sufficient to detect the speed and direction of airflow in all three dimensions.

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