Analyzing the Influence of Metro Stations on Commercial Property Values in Delhi: A Hedonic Approach

The effect of proximity to a transit system on property values has become a key issue of debate regarding public infrastructure and economic development. This article aims to examine the impact of selected stations along the Blue line of Delhi Mass Rapid Transit System (MRTS) on commercial property prices. The research analyzed 1,413 commercial property parcels sold before and after the commissioning of Blue line in 2005. Hedonic Price Analysis (HPA) was used to estimate the effects of proximity to the metro rail on commercial property values. The method was applied to two time periods, i.e., from 2000-2004 and 2005-2008, coinciding with planning and construction (pre-commissioning phase and the operation phase (post-commissioning phase) of metro rail using actual sale prices of commercial units. The results indicate that a station node shows a negative trend during the planning and construction period. However, the operation period has produced a significant price premium associated with commercial properties, connected with improved accessibility. The coefficients indicate that MRTS has induced an increase in prices from INR 732.80 to INR 246.19, and its radius of impact covers an area of approximately 1/2 km from the stations. The methodology and results provide insight with a specific focus on commercial real estate values in other metropolitan cities developing and expanding MRTSs.

What determine the price of Bonga sheep at the market level in Southwestern Ethiopia? A hedonic price analysis

Background Bonga sheep is a mutton type breed with a long-fat-tail and better body weight at maturity. The breed is especially located in the Southwestern mid and highland land areas of Ethiopia. Currently, the breed was well known in Ethiopia and also its price is higher as compared to other sheep breeds in the country. However, empirical evidence is lacking on price determinants of the breed in Ethiopia. Therefore, this research aims at identifying sheep attributes and other factors that determine the market prices of Bonga sheep in Southwestern Ethiopia. Methodology Data from 300 traded sheep and sheep marketers were collected from five major sheep marketing centers in the Kaffa zone. A hedonic price model adjusted for heteroscedasticity was employed to analyze the observed price data. Results The model result showed that the attributes of the sheep are important guiding criteria in price formulation. Among the attributes age, sex (male), colour (red), body condition (good), tail type (very fat) and absence of horn significantly and positively determine the sheep price. As well, market place (Gojebi and Bonga) near to big cities and season (holiday) and purpose of purchase are also significant determinants of bong sheep price out of the sheep attributes in Southwestern Ethiopia. Conclusion Targeting in systematic improvement of the significant attributes which are demanded by the market and establishment of a breeding program to make sheep improvement in a sustainable way. Besides, effort should be geared to transform the system into a market-oriented system using a value chain framework by improving access to market information.

CONSTRUCTING HOUSING PRICE INDEX FOR TERRACED PROPERTIES IN JOHOR BAHRU, MALAYSIA

Housing is a country’s biggest asset. Hence, the pattern of the housing price index (HPI) is an important topic to gain insight into the housing market while identifying the prevailing housing issues. The determinants of housing price vary for each city and state based on the different characteristics in each location. Accordingly, HPI should consider the property’s quality differences. Besides, national HPI is insufficient and restricted to the housing price at the state level. Thus, the study focused on constructing a specified HPI model for different cities, districts, and states. Effective HPI can give parties a better idea of the current property market situation and act as an analytical tool in managing the sector. Specifically, the study aims to examine the relationship between the heterogeneity housing attributes and housing prices of the terraced properties in Johor Bahru, Malaysia. Additionally, the study provides detailed information on the key determinants of the housing price variation in Johor Bahru. Hedonic price analysis is useful in constructing HPI, expressing housing price as a function of vector property characteristics. Furthermore, HPI is constructed based on the yearly indices and by pooling the data into certain periods. The results show the percentage of variance explained by the factors of HPI for the terraced properties in Johor Bahru. Correspondingly, the underlying correlation between the tested housing attributes with the housing price is explained through the analysis results.

The structure of automotive nostalgia: a hedonic price analysis of classic car model value formation

PurposeFor several years, the classic car market has been attracting considerable media and public attention, but the research literature is virtually nonexistent. The purpose of this paper is to address the factors that determine the values of classic car models and explain the remarkable price differences among them.Design/methodology/approachThe paper develops and tests a set of research hypotheses about the effects of model characteristics on market values in the context of a generalized hedonic price model that also accounts for heterogeneity among classic car brands.FindingsIt is demonstrated that classic car model values reside at several levels and are determined by observable characteristics pertaining to aesthetics, rarity, engineering and performance. In addition, we show that classic car marques play a critical role in the determination of model values and account for considerable variation in values, even after controlling for observable model attributesOriginality/valueThis is one of the first empirical studies to address classic car model value formation. The findings reveal how measurable, observable factors determine classic car model values and augment our understanding of a very interesting but understudied market.

Increasing value through gear flexibility: A case study of U.S. West Coast Sablefish

This paper explores the potential economic gains of allowing additional flexibility in gear-choice, within rights-based management programs. A case study of U.S. West Coast sablefish (Anoplopoma fimbria) provides an example of a commercially important species where gear-switching is currently occurring within the IFQ program, allowing us to isolate the economic potential of gear flexibility along two important margins: size and quality. We conduct a hedonic price analysis of ex-vessel prices using panel fish ticket data and linear mixed-effect econometric models to examine the influences of gear, size, condition, fishing sector, port group, landing month and year on the price of sablefish. We generate a counter-factual scenario that represents the IFQ fishery where the use of fixed-gear is prohibited, by predicting what the size-composition of catch would have been if the sablefish had been caught with trawl gear. We find that the flexibility of targeting sablefish with fixed gear between 2011-2016 generated an annual average 10.45% increase in total revenue, or $1.17M, compared to the trawl-only scenario. These results show sablefish value increases through implementing gear flexibility, which contributes to a broader conversation of allocative efficiency.

Revisiting the Proximity Principle with Stakeholder Input: Investigating Property Values and Distance to Urban Green Space in Potchefstroom

Nature is essential to urban quality of life, yet green spaces are under pressure. In an attempt to strengthen the case for urban greening and to reclaim nature into cities, this research considered green spaces from an economic spatial perspective. The proximity principle, as part of hedonic price analysis, is employed to determine the impact of green spaces on property value in specifically selected residential areas within Potchefstroom, South Africa. Our statistical analysis indicated a rejection of the proximity principle in some areas, contradicting internationally accepted theory. To investigate local trends and possible reasons for the rejection, supporting quantitative data was gathered through structured questionnaires disseminated to local residents of Potchefstroom and Professional Planners in South Africa. Challenges pertaining to the planning of green spaces were emphasised, despite residents’ willingness to pay more for such green spaces in close proximity to residential areas, according to the cross-tabulations conducted. The research results contributed to the discourse on the economic benefits of green spaces and presented the trends of such benefits within the local context of Potchefstroom. The results emphasised the need to rethink the planning of green spaces within the local context, and provided recommendations on how to reclaim nature into cities from a spatial planning perspective.

Does Italian origin really determine a price premium for fluid milk? Evidences from a hedonic price analysis

The regulation 1169/2011, which aims to protect the consumers in relation to food information, stresses the fact that the country of origin is become a key attribute for consumers in their purchasing decision. In 2014, the Italian Ministry of Agricultural, Food and Forestry Policies, with the Decree of 9 December 2016 - based on art. 26 of Reg. 1169/2011 – introduced the obligation of labelling the country origin of milk used in all dairy products and therefore for the first time for uht milk. In this context, the aim of the study is to evaluate the price premium of different quality attributes on uht milk sold in Italy, with particular regard to the country of origin of milk.From the analysis, it emerges that Italian origin of milk has a significant and positive effect on price, together with the type of retailer (i.e. hypermarket), notorious brands, plastic packaging, high and middle placement on the shelves, organic attribute and the enrichment with omega 3, phosphorus or fibre.