Shopping center redevelopment is inevitable to remain attractive for consumers. In this paper, we investigate the external effects of shopping center redevelopment on nearby residential property ...prices. Using a difference‐in‐difference empirical framework, we find the redevelopment has positive external effects on nearby property prices. We find the price of a property located next to a redeveloped shopping center increases by 1.43% on average just after redevelopment. Our results indicate that these positive external effects wear off rather rapidly across space and over time. This suggests that shopping center redevelopment plays a substantial, but limited, role in combating neighborhood deprivation.
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BFBNIB, DOBA, FZAB, GIS, IJS, IZUM, KILJ, NLZOH, NUK, OILJ, PILJ, PNG, SAZU, SBCE, SBMB, UILJ, UKNU, UL, UM, UPUK
Tenant Mix and Retail Rents in High Street Shopping Districts Zhang, Song; van Duijn, Mark; van der Vlist, Arno J.
Journal of real estate finance and economics/The Journal of real estate finance and economics,
07/2023, Volume:
67, Issue:
1
Journal Article
Peer reviewed
Open access
Urban areas have long had shopping districts in which retail properties are concentrated. It is argued that the diversity of retail tenants, often called tenant mix, contributes to the image and ...attractiveness of the high street shopping district. These districts are characterized by fragmented ownership and therefore the tenant mix is outside the control of individual property investors. We aim to explore the relationship between tenant mix and retail rents by studying high street shopping districts in the Netherlands. We start with delineating high street shopping districts using granular data on the spatial distribution of retail jobs. Within each shopping district, tenant mix is measured using detailed information on SBI sector classification and the number of retail properties. We find shopping districts with greater tenant mix show higher retail rents compared to districts with lower tenant mix.
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CEKLJ, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
In segmented markets for heterogeneous goods, prices reflect a mixture of demand for characteristics, bargaining power and market segmentation. This article integrates bargaining into the search ...model to investigate bargaining for housing across investors and owner‐occupiers when the investment housing segment is also subject to a rental property discount. It provides a framework for empirically identifying separate price effects of property type and bargaining power. We exploit homestead exemption information to empirically identify sellers and buyers as investors or owner‐occupiers. Data from Orange County, Florida, over 2000–2012 show a greater rental discount when controlling for investor bargaining power than when estimated in the conventional manner. In addition, investor relative bargaining power is not the same when selling to an owner‐occupier as when buying from an owner‐occupier. The results are robust across market phases and across neighborhoods.
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FZAB, GIS, IJS, IZUM, KILJ, NLZOH, NUK, OILJ, PILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
4.
After the Boom: Transitory and Legacy Effects of Foreclosures Turnbull, Geoffrey K.; van der Vlist, Arno J.
Journal of real estate finance and economics/The Journal of real estate finance and economics,
02/2023, Volume:
66, Issue:
2
Journal Article
Peer reviewed
Open access
Foreclosures lead to lower house prices in the short run. However, whether or not foreclosures also have long-run or legacy price effects has not been addressed extensively. Do neighborhoods with a ...greater number of past foreclosures exhibit long lasting house price discounts? This paper examines both transitory and legacy foreclosure price effects. We use almost 20 years of data from one of the epicenters of the foreclosure crisis: Orange County, Florida. We measure the number of recent and past foreclosures within narrowly defined neighborhoods for each house sold during 2016–2019:Q2. We compare transaction prices with different numbers of recent and past foreclosures, while controlling for differences in observed property characteristics and taking measures to reduce the impact of unobserved heterogeneity. We find that greater numbers of recent and past foreclosures are associated with lower house prices. We find strong transitory effects consistent with the existing literature. We also find significant but modest legacy effects on surrounding prices. These long-run discounts are about 0.41 percent to 0.79 percent in Orange County, Florida.
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CEKLJ, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
This paper measures the extent to which effects of foreclosures vary across neighborhoods. It offers a simple empirical framework for decomposing the spillover effects on neighboring property prices. ...Data from Orange County, Florida, reveal that the effects systematically vary across neighborhoods by morphology. The results indicate that older, homogeneous age structure, and non-gated neighborhoods with high vacancy rates are most in jeopardy when foreclosures are present, as these neighborhoods show the greatest neighborhood house price effects.
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EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
China has implemented a series of socioeconomic reforms since 1978. One of the reforms allows urban residents to purchase their own houses rather than renting houses from state institutions which has ...resulted in a rapid increase in home ownership. This paper estimates the impact of home ownership on life satisfaction in urban China on the basis of the 2010 wave of the China General Social Survey. Special attention is paid to the methodological problem of confoundedness between the determinants of home ownership and life satisfaction. Propensity score matching (PSM) is applied to control it. The results show that PSM reduces upward estimation bias caused by confoundedness and that it is more appropriate to control confoundedness than ordered probit regression. The estimates furthermore indicate that home ownership has a significant positive impact on life satisfaction of medium- and high income urban residents. For low income urban residents, the impact is also positive, though insignificant. The outcomes connect to the objectives of national development policy and thus have several important policy implications. First, the central and local governments, especially in provinces where it is still low, may want to continue stimulating home ownership as it enhances life satisfaction. Secondly, specific programs may be designed to make home ownership financially affordable for low income groups. Thirdly, local governments may want to initiate or intensify urban (renewal) programs to improve poor public facilities including public transportation, green space and sports accommodations in the immediate vicinity of depressing low income neighborhoods.
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CEKLJ, DOBA, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, IZUM, KILJ, KISLJ, MFDPS, NLZOH, NUK, OBVAL, ODKLJ, OILJ, PILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, SIK, UILJ, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
Uninformed buyers may pay more when purchasing complex assets, such as houses. This paper compares local house buyers who are later foreclosed with those not foreclosed for various buyer-types, ...namely, owner-occupier households, investor-companies, second-home buyers, and small-scale investors. Data from one of the foreclosure epicenters, Orange County, Florida, reveal that subsequent foreclosures are associated with higher prices for comparable housing at the time of purchase. The premium paid by buyers between 2000 and 2007 who experience foreclosure after 2007 is larger closer to the 2007 market peak, approaching 3 percent. We find considerable heterogeneity across buyer-types. In particular, foreclosed second-home buyers and small-scale investors systematically pay more, while investor-companies and owner-occupiers do not. The pattern is consistent with the hypothesis that the premium paid by foreclosed households reflects poor information or limited financial acumen.
•This paper compares buyers who are later foreclosed with those not foreclosed.•Buyer include investor-companies, owner-occupiers, second-home buyers, and small-scale investors.•Data cover one of the foreclosure epicenters, Orange County, Florida.•We find that buyers who experience foreclosure after 2007 pay more for comparable housing.•We find considerable heterogeneity across buyer-types.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This paper estimates the effect of attractive natural space on Dutch residential property prices. We operationalize attractive natural spaces by combining land use data with unique data on the ...perceived attractiveness of natural spaces. In our main results, the effect of attractive natural space on property prices falls from 16.0% for properties within 0.5 km, to 1.6% for properties up to 7 km away. Our findings advance existing hedonic studies by verifying that economic benefits of living near natural space extend over a larger distance. This has important implications for public policy regarding investment in natural space near residential areas.
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BFBNIB, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
Urbanization, industrialization and real estate reform have led to a vast growth of the real estate–construction sector in China. Using the 2002 and 2007 provincial input–output tables, this paper ...examines the importance of the real estate–construction sector in the Chinese economy by applying the hypothetical extraction method. The results show that for the 30 studied provinces, the weighted average impact of the real estate–construction sector accounts for 21 % of total output and for approximately 14 % of all jobs in 2002. For 2007, these figures are 23 and 22 %, respectively. The impact of the real estate–construction sector on total output and employment varies across regions. In 2007, the direct and indirect output and employment of real estate–construction sector accounted for around 15 % of total regional output and employment in Shandong and Henan, and for 40 % in Tianjin, Jilin, Shaanxi, Ningxia and Xinjiang. Our results also indicate that the real estate–construction sector is strongly own final demand oriented and regional economies which highly rely on it are particularly vulnerable to a fall in its demand.
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EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
This paper examines the efficiency of the 1998 irrigation management reform in the Guanzhong Plain, Shaanxi, China, at farm and canal level. Stochastic frontier analysis is applied to estimate ...irrigation water use efficiency, based on panel data for 800 farmers, spread over 80 irrigation canals, for the period 1999–2005. Analysis of determinants of water use efficiency shows that at farm level, water price and disclosure are important factors. Compared to the base case of unreformed, management reform has a positive impact with water user association having the largest effect, followed by joint‐stock co‐operative and private company. The canal model is in line with the farm level model, although estimates are less significant.
Resumen
Este artículo examina la eficacia de la reforma de 1998 de la gestión del riego en la llanura de Guanzhong (Shaanxi, China), a escala de finca agrícola y de canal de riego. Se aplica un análisis de frontera estocástica para calcular la eficiencia del uso del agua de riego, a partir de datos de panel de 800 agricultores distribuidos en 80 canales de riego, para el período 1999–2005. Un análisis de los determinantes de la eficiencia del uso del agua muestra que, a nivel de finca, el precio del agua y la difusión son factores importantes. En comparación con el caso base de la gestión no reformada, la reforma tiene un impacto positivo, teniendo la asociación de usuarios de agua el mayor efecto, seguido de cooperativas de accionistas y finalmente empresas privadas. El modelo de canal coincide en los resultados con el modelo de fincas, aunque las estimaciones son menos significativas.
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DOBA, FZAB, GEOZS, GIS, IJS, IMTLJ, IZUM, KILJ, KISLJ, NLZOH, NUK, OILJ, PILJ, PNG, SAZU, SBCE, SBJE, SBMB, UILJ, UKNU, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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