rss_2.0Real Estate Management and Valuation FeedSciendo RSS Feed for Real Estate Management and Valuation Estate Management and Valuation Feed of the Apartment’s Window Exposure to World Directions on Transaction Price<abstract> <title style='display:none'>Abstract</title> <p>The purpose of the study is to econometrically estimate the effect of the direction of window exposure on the unit price of housing. The research hypothesis according to which the exposure of windows to the east increases the unit price of apartments is verified, and is based on observations of the market for units in buildings with exposure to two sides of the world (east and west). Research into the various characteristics that affect real estate prices is being conducted around the world. The main focus is on the impact of features which we are certain about, i.e. date, area, number of rooms, etc., i.e. non-contentious and reasonably easy to identify as to the condition of the feature. The results of the study are to capture certain regularities that will give a glimpse of how the exposure of the apartment’s windows to a given direction of the world affected prices. Through the implementation of the survey, it can be determined whether a particular side of the world is better perceived by buyers. The study was conducted on data 2015-2023 in one of Poland’s largest cities - Szczecin, where the exposure of the windows of the apartments was to the east or west.</p> </abstract>ARTICLEtrue the Current Status of Real Estate Appraisal Methods<abstract> <title style='display:none'>Abstract</title> <p>Real estate appraisal, also known as property valuation, plays a crucial role in numerous economic activities and financial decisions, such as taxation assessment, bank lending, and insurance, among others. However, the current methods used in real estate appraisal face several challenges related to fundamental aspects such as accuracy, interpretation, data availability, and evaluation metrics. Therefore, the purpose of this research is to identify the current status of real estate appraisal methods, highlighting challenges and providing guidance for scholars to undertake further research in addressing them. The methodology retrieves the most recent papers published in the Scopus database over the past five years, covering the period from 2019 to the end of 2023, with an emphasis on empirical studies. These retrieved papers serve as references to capture the current status of real estate appraisal methods. The research findings confirm a clear trend towards increased utilization of artificial intelligence techniques, especially machine learning, but with unfinished work regarding related challenges. Artificial intelligence techniques enhance the accuracy of real estate appraisal, paving the way for improved decision support systems in business, financial, and economic sectors.</p> </abstract>ARTICLEtrue Market Attributes and Housing Affordability: Gaining Perspective on Future Value Trends<abstract> <title style='display:none'>Abstract</title> <p>This study fills a significant research gap in Malaysian government-led homeownership and affordability. Centered on crucial market attributes influencing these initiatives, insights from low-income groups were obtained. The primary aim of this study was to assess the importance of various market attributes on government homeownership initiatives in Malaysia. The data were collected from low-income groups using a structured questionnaire, providing valuable insights into the unique challenges faced by this demographic. A Relative Importance Index (RII) was employed to analyze the data, revealing that Financial Market Factors, Household Financial Capacity, Housing Affordability and Accessibility, and Government Housing Policies were the market attributes of the highest importance in shaping government homeownership efforts. The results of the exploratory factor analysis demonstrated that the Financial Market Factor was the most influential component, as indicated by its mean rank. This study sought to incorporate the valuable perspectives of respondents regarding integrating future value into financing models. Respondents' opinions reflected a significant level of support for such innovative approaches. This study examines the crucial market attributes influencing government homeownership initiatives in Malaysia. The findings underline the potential of incorporating future value into financing models to enhance housing affordability for low-income groups and promote broader homeownership objectives.</p> </abstract>ARTICLEtrue Rate and Real Estate Risk Factors: An Analysis of the Relationships for the Residential Market in the City of Rome (Italy)<abstract> <title style='display:none'>Abstract</title> <p>The assessment of income-producing properties - considered as the bulk of the existing assets - has rapidly increased. An efficient assessment of the market value of this kind of properties requires an adequate involvement of the main risk factors of the local real estate market for the determination of the capitalization rate for the income approach application. The aim of the work is to identify the most significant local real estate risk factors related to the market, the tenant and the context on the residential capitalization rate. The development of a regressive methodological approach applied to the residential sector of the city of Rome (Italy) is proposed. The obtained results show the susceptibility of the analyzed capitalization rate to the variation of the local real estate risk factors, in particular the per capita income and the variation of the rental values, by also considering the influences of the exogenous shocks and the expectation of the investors. The practical implications of the work consist in the possibility for evaluators to assess the likely changes in the capitalization rate in different residential contexts if variations occur in the most influential local risk factors identified by the proposed model.</p> </abstract>ARTICLEtrue Effect of Anchoring Bias on the Estimation of Asking and Transaction Prices in the Housing Market<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates the anchoring bias in the real estate market, focusing on the impact of uninformative random values on price estimations. Through a randomized controlled trial, the study examines whether selective accessibility contributes to the anchoring effect and to what extent the bias is transmitted from estimated asking prices to transaction prices on the primary housing market. The study was conducted in 2023 among Krakow University of Economics students on the example of the Krakow housing market in Poland. A multiple regression model indicates that randomly assigned numbers serve as cues affecting price estimations, with potential differences of up to 10.5% of the asking price offered by a developer. Additionally, gender and decision-making competencies influence estimation patterns, suggesting varying attitudes towards price-setting strategies that can be implemented by developers. These findings contribute to understanding the complexities of decision-making in real estate markets and highlight avenues for further research.</p> </abstract>ARTICLEtrue Modelling of Average Housing Prices in Local Markets and the Price Anchoring Effect<abstract> <title style='display:none'>Abstract</title> <p>This paper employs the econometric models of relationships over time to evaluate the change in the unit prices of apartments on the local secondary markets in Warsaw and Szczecin, depending on various socioeconomic factors. Indicators reflecting the influence of socioeconomic aspects in these cities and the lagged values of housing prices, acting as so-called anchors in this model, were used as the independent variables.</p> <p>The results obtained from this analysis indicate that it is the lagged prices of housing that have the strongest influence on the formation of price levels in the market. The study confirms the presence of the so-called price anchoring effect, which can be understood as the tendency of market participants to accept prices at levels that can be justified not only by socio-economic factors, but also by the price levels established in their minds.</p> <p>The main purpose of the research presented here is to show that there is no close relationship between quoted housing prices and their objective factors. The quality of models reflecting these relationships clearly improves when lagged housing prices are introduced as the explanatory variables, which may confirm the price anchoring effect derived from behavioral economics, meaning that the heuristics of anchoring and adjustment can be applied to the analysis of the behavior of a collective of individuals - many market participants.</p> </abstract>ARTICLEtrue and Valuation in Real Estate Cyclea Decade of Experience<abstract> <title style='display:none'>Abstract</title> <p>The issues of “real estate management” (REM) and “real estate valuation” (REV) are very important from the perspective of the economic development of any country. This is because they refer to one of the most important factors of production, which is real estate. The article assumes that REV is all the processes that allow for valuation, while REM is all the processes that allow for the management and administration of real estate. Both of these processes were referred to the “real estate market cycle” (REMC) and the “real estate lifecycle” (REL). The article analyzed 365 articles published in the Journal of Real Estate Management and Valuation (REMV) (eISSN: 2300-5289). The article is a review paper and has been prepared as part of a summary of scientific research carried out between 2013 and 2022.</p> </abstract>ARTICLEtrue Impact of the Flight to Quality on Office Rents and Vacancy Rates in Tokyo<abstract> <title style='display:none'>Abstract</title> <p>With the rapid spread of telecommuting since the COVID-19 pandemic, companies have been relocating to high-end business centers, thereby enhancing the workplace experience for employees, a phenomenon called the "flight to quality." However, this trend’s impact on rents and vacancy rates in individual office buildings has not been extensively studied. To determine the effects of the flight-to-quality phenomenon on individual buildings, we examine the impact of modern amenities, which directly influence employee lifestyles, on rents and vacancy rates in the Tokyo office market. Using a propensity score-based quasi-experimental method, we find that commercial properties with such modern amenities command higher rents and experience lower vacancy rates than those without. The difference in vacancy rates has increased since 2020. However, the significance of these amenities diminishes for properties less competitive in age, size, and location. The results indicate that the "flight to quality" may further polarize the office real estate market into two categories: one for high-end buildings experiencing increasing demand, and another for those with modest amenities experiencing decreasing demand. The findings have implications for office building owners/investors and the government, make educated decisions as to whether to invest in modern amenities, join the quality competition, or encourage urban restructuring.</p> </abstract>ARTICLEtrue for Establishing Transmission Line Easement: Parts of Land Affected and Persons Involved<abstract> <title style='display:none'>Abstract</title> <p>The identification of the scope of the limited property law (that is transmission easement), as well as the taking of appropriate actions, has become difficult. The far from sufficient implementation of rules has led to numerous disputes, the resolution of which has been sought in court. Very generalized legal bases, interpretation of regulations and the acceptance of the rulings of common courts have made the development of operating procedures possible and have determined the persons participating in performing work related to transmission easement.</p> <p>The specifics and the multidimensionality of the subject requires cooperation from several experts. The methodological bases are limited, and the regulations unclear. The goal of the research is the standardization of designations of component parts and activities associated with transmission easement. The entire process is made easier by a set procedure proposed in the form of an outline. This study draws attention to individual activities and the order in which they are performed. This allows individual specialists to carry out the next stages of work, which in turn leads to sanctioning the rights of the grantee, while determining fair and satisfactory compensation for the grantor.</p> </abstract>ARTICLEtrue in Transition to Homeownership in Household Life Cycle<abstract> <title style='display:none'>Abstract</title> <p>The housing situation changes with the household formation cycle. Age, marital status and having children are key to explaining the tenure status of households. However, the question of what factors differentiate owners and tenants if they are at the same stage of household formation arises. Using the logit model method, the determinants of tenure status of Polish households in the same life cycle stages were compared. The study used EU-SILC data for 2018. It showed that both the determinants of housing choices and the strength of their impact differ. At the household formation stage, income and the size of the city are important determinants. At this stage, housing choice is limited due to the availability of the rental market and the need for young people, who migrate to larger cities, to become independent. At the stabilization stage, the source of inequality was the gender of the household head, education, health and marital status. It has been observed that entering into an informal relationship by divorced persons does not equalize their chances of homeownership.</p> </abstract>ARTICLEtrue of Hedonic Model to Determine Residential Land Valuation in Suburban Areas: The Case of Hue City, Vietnam<abstract> <title style='display:none'>Abstract</title> <p>The paper aims to promote a model for determining residential land prices within a suburb of Hue city, Vietnam to improve the efficiency of land price determination and management. The study conducted surveys of 27 variables of 200 residential land plots in order to run the hedonic model using SPSS 26.0 software. The result developed a model that explained 78% of the change in land prices by incorporating five factors: area of land, width of road attached to the land plot, distance to hospital, ability to generate cash flow and planning information. Meanwhile, the writers also produced a map of residential land prices in the 2022 suburban areas of Hue city, Vietnam. This is a helpful tool in land market consulting and land valuation procedures.</p> </abstract>ARTICLEtrue Public Interest in Limited-Use Areas and Compensation from Airports in Poland: A Google Trends Analysis<abstract> <title style='display:none'>Abstract</title> <p>This article evaluates online social behavior regarding the establishment of limited-use areas (LUAs) around the airports in Warsaw and Gdansk. The study relied mainly on an analysis of Google Trends statistics, in particular the dynamics of keyword searches. The article suggests that assessments of online behavior can provide a deeper understanding of social behavior. The study involved an OLS regression analysis and a causal impact analysis of the intervention based on a Bayesian structural time-series model. This article analyses different phases of an information society's activity, from the introduction of LUAs around airports to the deadline for submitting compensation claims. The results indicate that the number of searches for the keyword "compensation" increased significantly after the introduction of LUAs and that RSV decreased after the end of the compensation process, which confirms that the intervention significantly influenced the analyzed time series.</p> </abstract>ARTICLEtrue Model for Transit-Oriented Developments in Kuala Lumpur, Malaysia<abstract> <title style='display:none'>Abstract</title> <p>The idea of Transit Oriented Development (TOD) was to foster urban development around railway networks and has been strategically built and applied since the late 19th and early 20th centuries. Previous studies reported positive, negative, or irrelevant impact of TOD on prices of surrounding real estate. The study aims to evaluate the impact of TOD on property prices in Kuala Lumpur. It utilizes secondary data obtained from the National Property Information Centre (NAPIC), Malaysia, after data cleaning, Nine Thousand Five Hundred and Forty-Nine (9549) Housing Transactions between the periods 2009 and 2018 were used. The research design was quantitative, and the Hedonic Price Model (log-log model) was used for data analysis. The model revealed a multiple correlation coefficient (R) of 0.891 and an adjusted R2 value of 0.794, indicating that 79.4% of the house price variation is explained by the model. The F value of 996.921, which is statistically significant, indicates that the predictors significantly combine to predict the price of TOD areas in Kuala Lumpur. The coefficient for LnTrainsta is 0.056, indicating that there was a positive relationship between residential house prices and TOD in Kuala Lumpur; this explains that house prices increase by 5.6% for every 100 meter closer to the rail transit station.</p> </abstract>ARTICLEtrue Megacities: Value and Impacts of Mixed-Use Developments with Multi-Criteria Decision-Making<abstract> <title style='display:none'>Abstract</title> <p>This research article explores the valuation of mixed-use developments and their impact on urban planning and city regeneration. The study introduces a Multi-Criteria Decision Making (MCDM) methodology to analyze complex buildings developed in Shanghai from 2009 to 2019. Two MCDM appraisals are offered in different developments using three groups of key indicators that served as benchmarks for other Chinese clusters and global megacities. The article addresses two primary research questions: how mixed-use assets can be assessed using MCDM, and what the key performance indicators and factors contributing to the success of mixed-use developments are. The findings highlight the importance of connectivity, previous real estate experience, ESG strategies, international branding, architectural design, financial metrics, and adaptability of the real estate industry in evaluating mixed-use assets. The study provides insight to stakeholders involved in real estate development, including urban planners, developers, and investors, enabling them to make informed decisions and improve sustainable practices. The research also highlights the importance of considering ESG principles, community benefits, and long-term strategies when assessing mixed-use developments to drive social change and contribute to urban regeneration.</p> </abstract>ARTICLEtrue Hedonic Models Really Quality-Adjusted? The Role of Apartment Quality in Hedonic Models of Housing Rental Market<abstract> <title style='display:none'>Abstract</title> <p>In micro-level data concerning the housing market, the apartment quality may be signaled via textual statements or the attached descriptions/photos. It may be done using hard information related to the easier-to-measure structural characteristics or soft information related to the apartment condition and design - <italic>soft quality</italic>. This paper checks whether the choice of the approach to handling the issue of soft quality of apartments influences the properties of hedonic models and the course of hedonic rent indices. The study shows that hedonic models that account for soft quality have better statistical properties than those without soft-quality-related variables. Among them, the models that include the information on quality extracted from descriptions of apartments prove to be the best. Still, considerable differences in the indicated course of hedonic rent indices have not been detected. However, the paper concludes that utilizing information on apartments’ soft quality may be crucial to understanding the market adjustment process to economic shocks. It has been proven that the price reaction of the Poznań (Poland) rental market to the COVID-19 pandemic and the Russian aggression on Ukraine has been diversified in the quality-related market segments.</p> </abstract>ARTICLEtrue Effect, Information Asymmetry, and Real Estate Market Decisions: Willingness to Pay and Willingness to Accept Disparities<abstract> <title style='display:none'>Abstract</title> <p>The endowment effect has gained dominance over the decades due to its ability to explain behavioral instincts portrayed by individuals when making decisions and its inconsistency with standard economic theories. It has been extensively applied in different fields of study, however its applicability to the housing market has been limited since its establishment. The study seeks to investigate whether the endowment effect exists in the housing market and whether the disclosure of information, increased affordability and agent evaluation significantly reduce the endowment effect. Using data obtained from a survey conducted between January and August 2022 in the Eastern Cape Province of South Africa, the study found that the disclosure of information eliminates the gap between buyers’ valuations and market values, while the gap between sellers’ valuations and market prices is reduced but not eliminated by information disclosure. The study has further concluded that increased affordability and agent evaluations significantly reduce the endowment effect in the housing market. Therefore, the study recommends that private and public entities should establish laws and regulations which promote the disclosure of information to reduce the gap between the willingness to pay (WTP) and the willingness to accept (WTA) that exists in the market.</p> </abstract>ARTICLEtrue Assessment of the Effect of Construction of the Southern Warsaw Ring Road on the Quality of Life and Residential Real Estate Market in the Wilanów District<abstract> <title style='display:none'>Abstract</title> <p>Every road investment has both positive and negative consequences in spatial, economic, environmental, and social terms. The objective of the article is the social assessment of the effect of construction of the Southern Warsaw Ring Road (WRR) on: (i) the quality of life of the local community, and (ii) the residential real estate market. The analyses employed the method of quantitative analysis with the application of the survey technique. The questionnaire was made publicly available to residents of the Wilanów district in Warsaw. Results obtained in the scope of the study render decision making models of respondents depending on the distance of the place of residence from the WRR. The results reveal that responses given by the group of respondents living nearer the ring road are the most variable, particularly in the context of assessing the effect of the investment on the quality of life, including nuisance related to the express road and plans to change the place of residence. The same group of respondents provided the highest share of responses supporting the claim that housing prices increased due to the construction of the ring road.</p> </abstract>ARTICLEtrue of Environmentally Certified Residential Developments in Poland<abstract> <title style='display:none'>Abstract</title> <p>The scale of environmental pressure caused by the construction sector has prompted a search for new technical solutions to minimize the negative impact of this part of the national economy on the environment. The drive to evaluate the adopted solutions has led to the creation of building assessment systems - environmental certificates.</p> <p>The aim of the article is both to introduce the certification processes used in the Polish residential property market and to indicate the locations of residential investments that have obtained the certificates in question. The paper takes a closer look at environmental certification using multi-criteria building assessment systems, i.e. BREEAM, LEED and HQE. The time scope of the presented research covered the years 2016 to the first quarter of 2022.</p> <p>The research carried out allowed an upward trend to be observed in the number of environmental certificates awarded, indicating the use of green building principles for residential properties. It is certain that there has been a development of this type of investment in Poland in the recent years. An analysis of the spatial distribution of the surveyed investments shows that location clusters have formed - green (low-emission) residential investments are distributed in the largest cities in Poland, which are characterized by a strictly defined consumer profile.</p> </abstract>ARTICLEtrue Size of the Rental Housing Segment in Poland and its Main Determinants<abstract> <title style='display:none'>Abstract</title> <p>Our research into the fast-growing segment of the rental market fits perfectly with the current wave of excitement. In this research, we attempt to answer a fundamental question: how large is the rental segment in Poland? To our surprise, the answer to this key question remains wrapped in mystery, with an absence of continuous studies disclosing its true size.</p> <p>Undaunted, in this paper we took up the challenge to develop a method that would give us a clear answer. Using Eurostat statistics, we develop a methodological framework for estimating the size of the rental segment. We acknowledge that Eurostat data possesses certain limitations, yet serves as a valuable resource for fulfilling our goal under the proposed methodology. In our approach, we determine the size of Polish rental segment between 2007 and 2021. To validate our findings, we dived into the complex relationship between the size of the rental segment and households. Applying linear regression, we sought to unravel the main determinants influencing not only the overall housing market but also the dimensions of the puzzling rental segment. The proposed method proves to be successful and answers the research question. However, it is important to emphasize that the presented results are estimates that give an impression of the elusive size of the rental housing segment and not exact measurements. Moreover, the flexibility of the proposed methodology is promising and allows similar studies to be conducted in different geographical contexts.</p> </abstract>ARTICLEtrue Potential of Residential Property in Poland as an Inflation Hedge Investment<abstract> <title style='display:none'>Abstract</title> <p>The research objective of the article was to assess the potential of residential property in Poland as an inflation hedge investment. The study was conducted using innovative measures of the level of inflation hedging. The study was made for Poland’s six largest local residential markets, for two types of investments, for different investment horizons (from 6 to 15 years). The research period adopted was: 3Q2006-4Q2022. In all cities, investments providing only capital gains allowed an attractive inflation hedging level to be achieved. Investments that additionally included rental offered a high inflation hedging level. The variation in the six cities studied in terms of inflation hedging through housing investment was found to be very low. The question of how extending the investment horizon affected the inflation hedging ability was not firmly answered. Frequently, the extension of the investment horizon has been accompanied by an increase in the level of hedging.</p> </abstract>ARTICLEtrue