Jonathan Torres-Tellez and Alberto Montero Soler
The aim of this paper is to analyse the relationship of crime on housing prices during the economic recovery of the housing sector in Spain (2014–2019).
Abstract
Purpose
The aim of this paper is to analyse the relationship of crime on housing prices during the economic recovery of the housing sector in Spain (2014–2019).
Design/methodology/approach
For this purpose, it is used a regional panel data in first differences for the period 2014–2019 in order to control the endogeneity and multicollinearity that these models usually present in the empirical literature.
Findings
The results show that it takes between one and two years for housing prices in Spain to respond negatively to an increase in crime. Of the eight types of crime analysed, only four of them establish statistically significant relationships with housing prices, while robbery with violence (−2.2%) and burglary with forced entry (−0.5%) have the greatest negative impact on housing prices. Lastly, the results highlight the fact that the category “other crimes against property” – which includes squatting – is the only crime typology that has an immediate effect on housing prices (−1.7%).
Practical implications
These results demonstrate that the more serious property crimes have a greater quantitative negative impact on housing prices. These crimes combine both a violent nature and the fact that they affect property, thus generally causing greater harm to individuals’ emotional well-being and perception of criminality. These findings have direct implications for crime prevention strategies, as the housing market in Spain appears to be more affected by this type of criminal activity. Consequently, public institutions should focus their efforts on mitigating these crimes.
Originality/value
This is the first study that examines the role of crime in the recovery of the real estate sector in Spain following the economic crisis of 2008. It is also one of the pioneering works for the European context, utilizing a panel data approach with first differences and incorporating various types of criminal activities within the same model.
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Masresha Belete Asnakew, Melkam Ayalew Gebru, Wuditu Belete, Takele Abebe and Yeshareg Baye Simegn
This study aims to identify determinants of single-family residential property values and fill the gap by analyzing respondents’ willingness to pay/receive data alongside real…
Abstract
Purpose
This study aims to identify determinants of single-family residential property values and fill the gap by analyzing respondents’ willingness to pay/receive data alongside real transaction data. Ordinal logistic regression and ordinal least square regression were used.
Design/methodology/approach
Ordinal logistic regression effectively analyzes willingness-to-pay/receive data, accommodating the ordered nature of property value responses while incorporating multiple influencing factors. Ordinal least square regression quantifies the impact of continuous and categorical predictors on real transaction data.
Findings
Findings revealed strong associations between property values and several variables. Analysis of willingness-to-pay/accept data from 232 respondents showed significant impacts of factors such as the number of rooms, site area, construction material, property orientation, property age and proximity to bus stations and the central business district (p < 0.05). Similarly, ordinal least square regression analysis of transaction data confirmed the significance of most of these factors, except for property orientation, which indicates the difference of preference in the local market or reporting inconsistencies, demand further investigation. Variables such as views, proximity to wetlands, roads, green areas, religious institutions and schools were statistically insignificant across both data sets (p > 0.05).
Practical implications
It provides a robust basis for housing and urban development strategies. The stakeholders such as real estate developers, urban planners and policymakers are encouraged to incorporate these findings into housing policies, land value capture initiatives and urban planning frameworks to enhance residential property value and align with sustainable urban development goals.
Originality/value
This study contributes original insights into single-family residential property valuation by integrating willingness-to-pay and transaction data, substantiating the determinants of property value.
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The purpose of this study is to reveal the dynamics of house prices and sales in spatial and temporal dimensions across British regions.
Abstract
Purpose
The purpose of this study is to reveal the dynamics of house prices and sales in spatial and temporal dimensions across British regions.
Design/methodology/approach
This paper incorporates two empirical approaches to describe the behaviour of property prices across British regions. The models are applied to two different data sets. The first empirical approach is to apply the price diffusion model proposed by Holly et al. (2011) to the UK house price index data set. The second empirical approach is to apply a bivariate global vector autoregression model without a time trend to house prices and transaction volumes retrieved from the nationwide building society.
Findings
Identifying shocks to London house prices in the GVAR model, based on the generalized impulse response functions framework, I find some heterogeneity in responses to house price changes; for example, South East England responds stronger than the remaining provincial regions. The main pattern detected in responses and characteristic for each region is the fairly rapid fading of the shock. The spatial-temporal diffusion model demonstrates the presence of a ripple effect: a shock emanating from London is dispersed contemporaneously and spatially to other regions, affecting prices in nondominant regions with a delay.
Originality/value
The main contribution of this work is the betterment in understanding how house price changes move across regions and time within a UK context.
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Melkam Ayalew Gebru, Tadesse Amsalu and Worku Nega
The paper aims to estimate the house rental values for the purpose of customizing mass appraisals in Bahir Dar City, Ethiopia. It seeks to identify the critical factors affecting…
Abstract
Purpose
The paper aims to estimate the house rental values for the purpose of customizing mass appraisals in Bahir Dar City, Ethiopia. It seeks to identify the critical factors affecting the rental values of residential properties and customize a mass appraisal model for such properties. The study focuses on identifying attributes that significantly affect house rental values.
Design/methodology/approach
The paper adopted a survey research design, utilizing a survey questionnaire, expert group discussion and document analysis. The data were analyzed using thematic, descriptive and inferential statistical analysis, including correlation and hedonic regression analysis.
Findings
Among the variables included in the model, the number of rooms, availability of schools, land value grading, type of nearest road, housing typology, built-up area, plot area, walling material, traveling cost and fencing materials were the most significant factors for predicting the annual rental value of residential properties in the city.
Research limitations/implications
The findings of this study will provide valuable insights to tax assessors, property owners and local government authorities, including municipalities, concerning the key determinants of the rental values of residential properties. Besides, these findings will serve as a useful tool for valuers and researchers in the field of property value modeling.
Originality/value
This study represents the first attempt to develop a framework for mass appraisal of residential properties using annual rental values in the Ethiopian context.