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Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach

Author

Listed:
  • Rita Yi Man Li

    (Sustainable Real Estate Research Center/HKSYU Real Estate and Economics Research Lab, Department of Economics and Finance, Hong Kong Shue Yan University, Hong Kong, China)

  • Ka Yi Cheng

    (Sustainable Real Estate Research Center/HKSYU Real Estate and Economics Research Lab, Department of Economics and Finance, Hong Kong Shue Yan University, Hong Kong, China)

  • Muhammad Shoaib

    (Department of Construction Engineering and Management, School of Civil and Environmental Engineering, National University of Science and Technology, Islamabad 44000, Pakistan)

Abstract

Various researchers have explored the adverse effects of walled buildings on human health. However, few of them have examined the relationship between walled buildings and private housing estates in Hong Kong. This study endeavors to fill the research gap by exploring the connections among walled-building effects, housing features, macroeconomic factors, and housing prices in private housing estates. Specifically, it reveals the relationship between walled buildings and housing prices. Eight privately owned housing estates are selected with a total of 11,365 observations. Results are analyzed to study the factors that affect the housing price. Firstly, unit root tests are carried out to evaluate if the time series variables follow the unit root process. Secondly, the relationship between walled buildings and housing price is examined by conducting an artificial neural network. We assumed that the housing price reduces due to walled-building effects, given that previous literature showed that heat island effect, and blockage of natural light and views, are common in walled-building districts. Moreover, we assume that housing price can also be affected by macroeconomic factors and housing features, and these effects vary among private housing estates. We also study these impacts by using the two models. Recommendations and possible solutions are suggested at the end of the research paper.

Suggested Citation

  • Rita Yi Man Li & Ka Yi Cheng & Muhammad Shoaib, 2018. "Walled Buildings, Sustainability, and Housing Prices: An Artificial Neural Network Approach," Sustainability, MDPI, vol. 10(4), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1298-:d:142630
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    References listed on IDEAS

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    Cited by:

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    2. Zhijiao Qin & Yan Yu & Dianfeng Liu, 2019. "The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    3. Rita Yi Man Li & Kwong Wing Chau & Frankie Fanjie Zeng, 2019. "Ranking of Risks for Existing and New Building Works," Sustainability, MDPI, vol. 11(10), pages 1-26, May.
    4. Rita Yi Man Li & Yi Lut Li & M. James C. Crabbe & Otilia Manta & Muhammad Shoaib, 2021. "The Impact of Sustainability Awareness and Moral Values on Environmental Laws," Sustainability, MDPI, vol. 13(11), pages 1-26, May.
    5. Yujiao Chen & Zhengbo Luo, 2022. "Hedonic Pricing of Houses in Megacities Pre- and Post-COVID-19: A Case Study of Shanghai, China," Sustainability, MDPI, vol. 14(17), pages 1-21, September.
    6. Alice Barreca & Rocco Curto & Giorgia Malavasi & Diana Rolando, 2022. "Energy Retrofitting for the Modern Heritage Enhancement in Weak Real Estate Markets: The Olivetti Housing Stock in Ivrea," Sustainability, MDPI, vol. 14(6), pages 1-24, March.
    7. Suna Ozyuksel & Yavuz Bacak, 2020. "Impact of Engineering Insurances on the Growth of Turkish Construction Sector," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(8), pages 1-28, August.
    8. Yingchao Lin & Zhili Ma & Ke Zhao & Weiyan Hu & Jing Wei, 2018. "The Impact of Population Migration on Urban Housing Prices: Evidence from China’s Major Cities," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    9. Lili Kusumawati & Erni Setyowati & Agus Budi Purnomo, 2021. "Practical-Empirical Modeling on Envelope Design towards Sustainability in Tropical Architecture," Sustainability, MDPI, vol. 13(5), pages 1-23, March.

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