Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb’s Impact on Housing Prices in Sydney

Over the last decade, the emergence and significant growth of home-sharing platforms, such as Airbnb, has coincided with rising housing unaffordability in many global cities. It is in this context that we look to empirically assess the impact of Airbnb on housing prices in Sydney—one of the least affordable cities in the world. Employing a hedonic property valuation model, our results indicate that Airbnb’s overall effect is positive. A 1% increase in Airbnb density is associated with approximately a 2% increase in property sales price. However, recognizing that Airbnb’s effect is geographically uneven and given the fragmented nature of Sydney’s housing market, we also employ a GWR to account for the spatial variation in Airbnb activity. The findings confirm that Airbnb’s influence on housing prices is varied across the city. Sydney’s northern beaches and parts of western Sydney experience a statistically significant value uplift attributable to Airbnb activity. However, traditional tourist locations focused around Sydney’s CBD and the eastern suburbs experience insignificant or negative property price impacts. The results highlight the need for policymakers to consider local Airbnb and housing market contexts when deciding the appropriate level and design of Airbnb regulation.

A Capability Approach to Real Estate Valuation and Value Enhancement

There are numerous financial metrics available in the academic and commercial world to estimate real estate value. Appraisers often use such metrics when advising on the purchase or sale of real estate at a point in time. The first part of this paper proposes a new metric, based on the capability approach, to make an ex-post single period valuation. Further, appraisers often give advice to their clients on actions to take in order to enhance the value of their real estate. This area of value enhancement has received scant attention in the academic literature. In practice, this advice is often based ad-hoc, anecdotal recommendations. The second part of the paper develops seven real estate strengths that can be targeted and provides an ex-ante approach to building real estate value. The valuation model presented in this paper is a pragmatic approach to enhancing both the values of tangible and intangible capabilities of a property by utilizing Expense Leveraged Value Indexes (ELVI).

An Automatic Tool for the Determination of Housing Rental Prices: An Analysis of the Italian Context

In the last decades, some global events such as the economic crisis of 2008 and the COVID-19 emergency of 2020, have generated more attention towards the housing rental market and its capacity to meet several social needs. In order to study the existent demand for houses, then define the interventions on the residential assets to make them more affordable for the most fragile population groups, adequate evaluation tools are required. With reference to the residential property segment of five metropolitan cities located in the Italian territory, the present research is aimed at analyzing the contribution of the most influencing factors on rental prices. In particular, this research refers to the rented properties of the second half of 2019, with a set of variables that represent the intrinsic and extrinsic factors of the local market. The implementation of an automated valuation model allows the determination of the most significant factors and the functional relationships that they have with housing rental fees. The outputs obtained could support the improvement of equitable public housing policies or could guide private investment decisions, such as refurbishment interventions of certain significant factors that could increase the market rental value. This study is the first step in wider research that is currently in progress, which aims to investigate the effects of the existing COVID-19 pandemic on the residential rental market.

Value and Quality in the Dialectics between Human and Urban Capital of the City Networks on the Land District Scale

This contribution proposes an inter-scalar and multi-polar analysis evaluation model of the territory of the Enna district, aimed at providing a robust axiological representation of the salient aspects of the general issue of internal areas, and therefore of the set of criticalities affecting them from the perspective of the human and urban capital they express. In the prospect of investigating the relations between urban and life quality – corresponding to the “city effect” – in the territorial context of each of the 20 municipalities of the Enna district, a hierarchical descriptive-valuation model was created, which coordinates a relevant amount of information units (data) and the corresponding attributes, indicators and indices that have been turned in aggregate value judgments attributed to each administrative land unit, from the perspectives of the criteria referred to as the main forms of the territorial capital. This is a multi-dimensional valuation model based on the Multi-Attribute Value Theory. Each survey and processing is mapped with different levels of detail at the scale of municipalities, census sections and cadastral land units. The outcome of this complex process of analysis and assessment provides multiple comparisons, revealing unexpected and sometimes counter-intuitive aspects in several municipalities, some of which are characterised by innovative prospects and opportunities for redevelopment of their historic centers. Correlations between information units at the different levels of the dendrogram have also indicated interesting trends and attitudes, whose comparisons can address territorial policies on both a local and provincial scale. Furthermore, the focus on the “cities network” is here assumed and proposed as the privileged point of observation of territory and the related aspects of the quality of life.

Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb's impact on Housing Prices in Sydney

Over the last decade, the emergence and significant growth of home sharing platforms such as Airbnb has coincided with rising housing unaffordability in many global cities. It is in this context that we look to empirically assess the impact of Airbnb on housing prices in Sydney - one of the least affordable cities in the world. Employing a hedonic property valuation model, our results indicate that Airbnb’s overall effect is positive. A 1% increase in Airbnb density is associated with approximately a 2% increase in property sales price. However, recognising that Airbnb’s effect is geographically uneven and given the fragmented nature of Sydney’s housing market, we also employ a GWR to account for the spatial variation in Airbnb activity. The findings confirm that Airbnb’s influence on housing prices is varied across the city. Sydney’s northern beaches and parts of western Sydney experience a statistically significant value uplift attributable to Airbnb activity. However, traditional tourist locations focused around Sydney’s CBD and the eastern suburbs experience insignificant or negative property price impacts. The results highlight the need for policymakers to consider local Airbnb and housing market contexts when deciding the appropriate level and design of Airbnb regulation.

The Valuation and Analysis of Apple Inc

In order to define a reasonable value of Apple’s stocks, a number of valuation models can be considered, including FCFF model, DDM, VC method, FCFE model and multiples valuation model. In the research, we use WACC and DCF calculation to evaluate the Apple company’s further value, and judging whether it is undervalued or overvalued based on historical data and market direction. As different models and data provide various results, they have different limitations and uses. For DCF, although some of the data used in its calculations are based on people's subjective analysis of the future, its valuation serves as a baseline for the target price, making its results relatively conservative and reasonable. Based on the results generated by valuation models, we think Apple still has a great potential to develop, and we advise customers to buy or hold the stock.

Real options analysis of revenue risk sharing in post-disaster housing reconstruction

Purpose Post-disaster housing reconstruction (PDHR) demands a considerable percentage of global property investment, yet the post-disaster environment presents intricate challenges to reconstruction financing for governments and at the same time, revenue uncertainty for private investors. The purpose of this study is to develop a methodology for tackling land shortage and the financial challenges of PDHR in the aftermath of a disaster. Design/methodology/approach This study developed a methodology based on a combined minimum revenue guarantee and maximum revenue cap model using a well-established real options analysis (ROA) for revenue risk sharing in PDHR projects and land readjustment (LR) for finance. The applicability of the purported model is demonstrated through an illustrative example. Findings The results show that flexibility in the options could increase the PDHR contractor’s risk profile by increasing the expected value of the contractor investment and reducing the probability of investment loss. On the other side, a cap on the contractor revenue stream would allow the government to benefit from any excess in revenue and would counterbalance the value of the option. Practical implications The framework proposed in this study could serve as a practical risk-revenue sharing in PDHR projects. Governments and policymakers could use the findings to enable the successful delivery of PDHR projects and consequently bring the quality of life of affected people to pre-disaster conditions. Originality/value This study can be considered as a first attempt toward the use of the Australian barrier style options structure, and the trinomial lattice valuation model in PDHR projects, which incorporates LR, public-private partnerships, governmental guarantees and PDHR concepts in one ROA-based framework.

Methodology and problems of collecting initial market information for cadastral valuation of real estate objects

В статье отмечено, что при формировании модели кадастровой оценки эксперты сталкиваются с необходимостью обработки и анализа больших массивов исходной информации, достаточность и достоверность которых отображает степень соответствия полученной информации реальным показателям рынка и оцениваемых объектов недвижимости, а также возможность их использования для построения адекватной оценочной модели. На основе анализа действующей законодательной и нормативно-правовой базы рассмотрена методология сбора исходной рыночной информации при кадастровой оценке. Выполненные в статье анализ и оценка отчётов и проектов отчётов об итогах государственной кадастровой оценки земельных участков и объектов капитального строительства в составе земель населенных пунктов в регионах страны позволили выявить существующие проблемы, сформулировать пути их решения, а также привести прогноз ожидаемых результатов. The article notes that when forming a cadastral valuation model, experts are faced with the need to process and analyze large amounts of initial information, the sufficiency and reliability of which reflects the degree of compliance of the information obtained with the real indicators of the market and the estimated real estate objects, as well as the possibility of using them to build an adequate valuation model. Based on the analysis of the current legislative and regulatory framework, the methodology for collecting initial market information for cadastral valuation is considered. The analysis and evaluation of reports and draft reports on the results of the state cadastral assessment of land plots and capital construction projects as part of the lands of settlements in the regions of the country made it possible to identify existing problems, formulate ways to solve them, and also provide a forecast of the expected results.