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The influence of characteristics of estate developer’s apartments on the chance of selling them

Author

Listed:
  • Arkadiusz Kuświk

    (WSB University in Wrocław; Narodowy Bank Polski, Regional Branch in Opole)

  • Łukasz Mach

    (Opole University of Technology, Faculty of Economics Management; Narodowy Bank Polski, Regional Branch in Opole)

  • Łukasz Mikołajczyk

    (WSB University in Wrocław; Narodowy Bank Polski, Regional Branch in Opole)

  • Marian Drymluch

    (University of Opole)

Abstract

This article examines the influence of characteristics of new apartments in Opole on the chance of selling them within 83 days following putting them up for sale. The proposed period of the apartments’ availability on offer was determined as the lower quartile of their selling time. The research was conducted on a sample of 520 transactions concluded in Opole on the market of estate developer’s apartments in the years 2018–2019. In order to accomplish the goal, properties of logistic regression were used. Out of all the variables used, three quantitative features proved statistically significant: unit price of the apartment, price of one square metre and time necessary to cover the distance from the apartment to the city centre (the Town Hall). None of the qualitative variables used in the modelling, despite their significance for preferences on the part of purchasers, satisfies the assumptions on the level of significance. Although the quantitative and qualitative characteristics that were not included in the model are not specified, they find their reflection in the transaction price of one square metre.

Suggested Citation

  • Arkadiusz Kuświk & Łukasz Mach & Łukasz Mikołajczyk & Marian Drymluch, 2021. "The influence of characteristics of estate developer’s apartments on the chance of selling them," Bank i Kredyt, Narodowy Bank Polski, vol. 52(2), pages 167-190.
    • Handle: RePEc:nbp:nbpbik:v:52:y:2021:i:2:p:167-190
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    References listed on IDEAS

    as
    1. L. Li & K. W. Chau, 2019. "What Motivates a Developer to Sell before Completion?," The Journal of Real Estate Finance and Economics, Springer, vol. 59(2), pages 209-232, August.
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    8. John R. Knight, 2002. "Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 213-237.
    9. Lukasz Mach & Dariusz Zmarzly & Ireneusz Dabrowski & Pawel Fracz, 2020. "Comparison on Subannual Seasonality of Building Construction in European Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 241-257.
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    Cited by:

    1. Krzysztof Olszewski & Jacek Łaszek & Joanna Waszczuk, 2023. "An unequal reaction of housing starts to house prices in different regions of Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 54(4), pages 437-458.

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    More about this item

    Keywords

    housing market; estate developer’s market; logistic regression; TOM (time on market);
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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