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Why the market value of residential premises and the costs of its purchase differ: The examples of Belarus and Poland

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  • Manzhynski, Siarhei
  • Źróbek, Sabina
  • Batura, Olga
  • Zysk, Elżbieta

Abstract

The purpose of this study is to investigate features of transaction costs (fees and taxes) regarding real estate deals and to analyze transaction costs in the real estate market in emerging and established economies in order to research the link between the extent of market development and transaction costs. The authors’ methodological approach to estimation of transaction costs consists of qualitative and quantitative stages and is based on descriptive, normative and statistical information, which allows estimation and comparison of transaction costs as well as their structure and sources of occurrence by types. The two cases were chosen for practical implementation of the method: a transition economy of Belarus and a relatively established market economy of Poland. In order to measure transaction costs, the authors use the example of a residential property in order to provide a comparable basis for further analysis. Application of the method to the most prevalent pattern of real estate deals shows sufficient comparability of transaction costs (ca. 2.5%) and a slight difference (ca. 4%) caused by the absence of transaction tax in Belarus.

Suggested Citation

  • Manzhynski, Siarhei & Źróbek, Sabina & Batura, Olga & Zysk, Elżbieta, 2018. "Why the market value of residential premises and the costs of its purchase differ: The examples of Belarus and Poland," Land Use Policy, Elsevier, vol. 71(C), pages 530-539.
    • Handle: RePEc:eee:lauspo:v:71:y:2018:i:c:p:530-539
    DOI: 10.1016/j.landusepol.2017.11.012
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    Citations

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    Cited by:

    1. Grover Richard & Walacik Marek, 2019. "Property Valuation and Taxation for Fiscal Sustainability – Lessons for Poland," Real Estate Management and Valuation, Sciendo, vol. 27(1), pages 35-48, March.
    2. Brzezicka, Justyna & Łaszek, Jacek & Olszewski, Krzysztof & Waszczuk, Joanna, 2019. "Analysis of the filtering process and the ripple effect on the primary and secondary housing market in Warsaw, Poland," Land Use Policy, Elsevier, vol. 88(C).
    3. Santos Eulália & Tavares Fernando, 2021. "The Profile of Portuguese People when Choosing an Apartment," Real Estate Management and Valuation, Sciendo, vol. 29(2), pages 38-51, June.
    4. Melnychenko Oleksandr & Osadcha Tetiana & Kovalyov Anatoliy & Matskul Valerii, 2022. "Dependence of Housing Real Estate Prices on Inflation as One of the Most Important Factors: Poland’s Case," Real Estate Management and Valuation, Sciendo, vol. 30(4), pages 25-41, December.
    5. Sabina Źróbek & Elżbieta Zysk & Mirosław Bełej & Natalija Lepkova, 2020. "Do Women Affect the Final Decision on the Housing Market? A Case Study," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    6. Petcharat, Thanatchaphan & Jattamart, Aungkana & Leelasantitham, Adisorn, 2023. "A conceptual model to imply a negative innovation assessment framework on consumer behaviors through the electronic business platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    7. Kazak Jan K. & Hendricks Andreas & Simeunović Nataša, 2019. "Hidden Public Value Identification of Real Estate Management Decisions," Real Estate Management and Valuation, Sciendo, vol. 27(4), pages 96-104, December.

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    More about this item

    Keywords

    Transaction costs; Residential market; Security of real estate acquisition;
    All these keywords.

    JEL classification:

    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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