IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v33y2016i4p309-331.html
   My bibliography  Save this article

Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments

Author

Listed:
  • Ilir Nase
  • Jim Berry
  • Alastair Adair

Abstract

This paper estimates the impact of quality design attributes on real estate value through empirical investigation of the owner-occupied multifamily residential sector. The methodological design is based on spatiotemporal modelling using a unique data-set of 424 Belfast City Centre apartments sold during the period 2000–2008. The key findings indicate that urban scale aspects of quality such as connectivity and vitality associated with building density add to real estate value. At the building level, quality features highly valued by home buyers are namely appropriateness of material quality, fenestration and massing to the surroundings. These key criteria are considered to have a significant visual perception compared to more complex concepts such as identity, material choice and overall condition. The contribution to knowledge involves extending the hedonic model to incorporate a wider selection of design quality variables; and improving estimation through the use of spatiotemporal modelling.

Suggested Citation

  • Ilir Nase & Jim Berry & Alastair Adair, 2016. "Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments," Journal of Property Research, Taylor & Francis Journals, vol. 33(4), pages 309-331, October.
  • Handle: RePEc:taf:jpropr:v:33:y:2016:i:4:p:309-331
    DOI: 10.1080/09599916.2016.1258588
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09599916.2016.1258588
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09599916.2016.1258588?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pace, R. Kelley & Barry, Ronald & Gilley, Otis W. & Sirmans, C. F., 2000. "A method for spatial-temporal forecasting with an application to real estate prices," International Journal of Forecasting, Elsevier, vol. 16(2), pages 229-246.
    2. Ilir Nase & Jim Berry & Alastair Adair, 2015. "Urban design quality and real estate value: in search of a methodological framework," Journal of Urban Design, Taylor & Francis Journals, vol. 20(5), pages 563-581, December.
    3. James P. LeSage & R. Kelley Pace, 2014. "The Biggest Myth in Spatial Econometrics," Econometrics, MDPI, vol. 2(4), pages 1-33, December.
    4. Jean Dub� & Di�go Legros, 2014. "Spatial econometrics and the hedonic pricing model: what about the temporal dimension?," Journal of Property Research, Taylor & Francis Journals, vol. 31(4), pages 333-359, December.
    5. Hough, Douglas E. & Kratz, Charles G., 1983. "Can "good" architecture meet the market test?," Journal of Urban Economics, Elsevier, vol. 14(1), pages 40-54, July.
    6. Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(1), pages 99-119, spring.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    9. Luc Anselin & Daniel Arribas-Bel, 2013. "Spatial fixed effects and spatial dependence in a single cross-section," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 3-17, March.
    10. Neil Dunse & Sotirios Thanos & Glen Bramley, 2013. "Planning policy, housing density and consumer preferences," Journal of Property Research, Taylor & Francis Journals, vol. 30(3), pages 221-238, September.
    11. Tony Smith & Peggy Wu, 2009. "A spatio-temporal model of housing prices based on individual sales transactions over time," Journal of Geographical Systems, Springer, vol. 11(4), pages 333-355, December.
    12. Hua Sun & Yong Tu & Shi-Ming Yu, 2005. "A Spatio-Temporal Autoregressive Model for Multi-Unit Residential Market Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 31(2), pages 155-187, September.
    13. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    14. Ilir Nase & Jim Berry & Alastair Adair, 2013. "Hedonic modelling of high street retail properties: a quality design perspective," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 31(2), pages 160-178, March.
    15. Gwilym Pryce & Kenneth Gibb, 2006. "Submarket Dynamics of Time to Sale," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 34(3), pages 377-415, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean Dubé & Diègo Legros & Sotirios Thanos, 2018. "Past price ‘memory’ in the housing market: testing the performance of different spatio-temporal specifications," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(1), pages 118-138, January.
    2. Ilir Nase & Nick van Assendelft & Hilde Remøy, 2019. "Rent Premiums and Vertical Sorting in Amsterdam’s Multi-Tenant Office Buildings," The Journal of Real Estate Finance and Economics, Springer, vol. 59(3), pages 419-460, October.
    3. Skripkiūnas Tomas & Navickas Valentinas, 2023. "Architectural Factors Influencing a Housing Market Value: A Theoretical Framework," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 25-35, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thanos, Sotirios & Dubé, Jean & Legros, Diègo, 2016. "Putting time into space: the temporal coherence of spatial applications in the housing market," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 78-88.
    2. Ilir Nase & Nick van Assendelft & Hilde Remøy, 2019. "Rent Premiums and Vertical Sorting in Amsterdam’s Multi-Tenant Office Buildings," The Journal of Real Estate Finance and Economics, Springer, vol. 59(3), pages 419-460, October.
    3. Jean Dubé & Diègo Legros & Sotirios Thanos, 2018. "Past price ‘memory’ in the housing market: testing the performance of different spatio-temporal specifications," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(1), pages 118-138, January.
    4. Sunak, Yasin & Madlener, Reinhard, 2016. "The impact of wind farm visibility on property values: A spatial difference-in-differences analysis," Energy Economics, Elsevier, vol. 55(C), pages 79-91.
    5. Gabriel M. Ahfeldt & Alexandra Mastro, 2011. "Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois," SERC Discussion Papers 0084, Centre for Economic Performance, LSE.
    6. Jean Dubé & Diègo Legros, 2013. "Dealing with spatial data pooled over time in statistical models," Letters in Spatial and Resource Sciences, Springer, vol. 6(1), pages 1-18, March.
    7. Filippova, Olga & Sheng, Mingyue, 2020. "Impact of bus rapid transit on residential property prices in Auckland, New Zealand," Journal of Transport Geography, Elsevier, vol. 86(C).
    8. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    9. Paliska, Dejan & Drobne, Samo, 2020. "Impact of new motorway on housing prices in rural North-East Slovenia," Journal of Transport Geography, Elsevier, vol. 88(C).
    10. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.
    11. Gabriel Ahlfeldt & Alexandra Mastro, 2012. "Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois," Housing Studies, Taylor & Francis Journals, vol. 27(8), pages 1079-1099, November.
    12. Mai, Nhat Chi, 2018. "도이모이 이후 베트남의 주거 이동, 선택, 가격 결정요인 연구: 호치민시 사례 중심으로," OSF Preprints 6kdfy, Center for Open Science.
    13. Sanglim Yoo & John E. Wagner, 2016. "A review of the hedonic literatures in environmental amenities from open space: a traditional econometric vs. spatial econometric model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 20(1), pages 141-166, March.
    14. Biel E. Metz, 2015. "Effect of Distance to Schooling on Home Prices," The Review of Regional Studies, Southern Regional Science Association, vol. 45(2), pages 151-171, Fall.
    15. Dubé, Jean & Legros, Diègo & Devaux, Nicolas, 2018. "From bus to tramway: Is there an economic impact of substituting a rapid mass transit system? An empirical investigation accounting for anticipation effect," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 73-87.
    16. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.
    17. Radosław Trojanek, 2016. "The impact of green areas on dwelling prices: the case of Poznań city," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 27-35.
    18. Olaru, Doina & Mulley, Corinne & Smith, Brett & Ma, Liang, 2017. "Policy-led selection of the most appropriate empirical model to estimate hedonic prices in the residential market," Journal of Transport Geography, Elsevier, vol. 62(C), pages 213-228.
    19. Marta Sylla & Tadeusz Lasota & Szymon Szewrański, 2019. "Valuing Environmental Amenities in Peri-Urban Areas: Evidence from Poland," Sustainability, MDPI, vol. 11(3), pages 1-15, January.
    20. Amarin Siripanich & Taha Hossein Rashidi & Emily Moylan, 2019. "Interaction of Public Transport Accessibility and Residential Property Values Using Smart Card Data," Sustainability, MDPI, vol. 11(9), pages 1-24, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:33:y:2016:i:4:p:309-331. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.