Pub Date : 2019-10-02DOI: 10.1080/09599916.2019.1687572
Abdul-Rasheed Amidu, D. Boyd, F. Gobet
ABSTRACT There is widespread acceptance that both intuition and rationality can play significant roles in valuation decision-making. However, a study that specifically examines how intuitive and rational approaches interact is still missing. This study addresses this gap by applying cognitive theories of information processing and using a very detailed analysis of verbal protocols to propose a model of cognitive structure that identifies and describes the reasoning of property valuers during a commercial valuation task. The empirical data suggest that valuers start with an established goal and then engage in analytical and intuitive thinking until a valuation outcome has been reached. It is argued that a major reason for effective valuation decision-making, in a real-world context, is that the cognitive processes required by experts’ analytical and intuitive thinking demonstrate greater degree of cohesiveness and interrelatedness. The ability of valuers to integrate more intuition into their largely rational decision-making process suggests the need for valuation professional organisations to formally acknowledge intuition as an important component of valuation professional competence and skill requirement and to customise professional valuers’ training and development programmes to facilitate the development of appropriate intuitive approaches for effective valuation decision-making.
{"title":"A Study of the Interplay between Intuition and Rationality in Valuation Decision Making","authors":"Abdul-Rasheed Amidu, D. Boyd, F. Gobet","doi":"10.1080/09599916.2019.1687572","DOIUrl":"https://doi.org/10.1080/09599916.2019.1687572","url":null,"abstract":"ABSTRACT There is widespread acceptance that both intuition and rationality can play significant roles in valuation decision-making. However, a study that specifically examines how intuitive and rational approaches interact is still missing. This study addresses this gap by applying cognitive theories of information processing and using a very detailed analysis of verbal protocols to propose a model of cognitive structure that identifies and describes the reasoning of property valuers during a commercial valuation task. The empirical data suggest that valuers start with an established goal and then engage in analytical and intuitive thinking until a valuation outcome has been reached. It is argued that a major reason for effective valuation decision-making, in a real-world context, is that the cognitive processes required by experts’ analytical and intuitive thinking demonstrate greater degree of cohesiveness and interrelatedness. The ability of valuers to integrate more intuition into their largely rational decision-making process suggests the need for valuation professional organisations to formally acknowledge intuition as an important component of valuation professional competence and skill requirement and to customise professional valuers’ training and development programmes to facilitate the development of appropriate intuitive approaches for effective valuation decision-making.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"387 - 418"},"PeriodicalIF":1.9,"publicationDate":"2019-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1687572","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42309340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-02DOI: 10.1080/09599916.2019.1690028
N. Crosby, P. Wyatt
ABSTRACT In the UK, contributions from landowners towards the provision of affordable housing are obtained through a process of negotiation that centres on the financial viability of each development proposal. National Planning Practice Guidance, first published in 2014 and recently revised in 2018 and 2019, provides the Government framework for these negotiations and sets parameters for the financial viability appraisals. Failure to achieve levels of affordable housing set out in local plans has been attributed to ‘gaming’ strategies employed by landowners and developers within viability negotiations. This paper examines how planning guidance has influenced financial viability appraisals. A key issue within these appraisals is the determination of a suitable return to the landowner, known as Benchmark Land Value. Using a case study approach to investigate two planning appeals and a subsequent High Court decision concerning a residential development site in London, this paper demonstrates how planning policy and practice guidance on viability can lead to reduced planning obligations being delivered. It identifies the technical concerns that need to be addressed to enable appraisals to determine land prices that are fair to landowners, whilst delivering policy-compliant levels of affordable housing, and discusses whether the revised National Planning Guidance has made those changes.
{"title":"What is a ‘competitive return’ to a landowner? Parkhurst Road and the new UK planning policy environment","authors":"N. Crosby, P. Wyatt","doi":"10.1080/09599916.2019.1690028","DOIUrl":"https://doi.org/10.1080/09599916.2019.1690028","url":null,"abstract":"ABSTRACT In the UK, contributions from landowners towards the provision of affordable housing are obtained through a process of negotiation that centres on the financial viability of each development proposal. National Planning Practice Guidance, first published in 2014 and recently revised in 2018 and 2019, provides the Government framework for these negotiations and sets parameters for the financial viability appraisals. Failure to achieve levels of affordable housing set out in local plans has been attributed to ‘gaming’ strategies employed by landowners and developers within viability negotiations. This paper examines how planning guidance has influenced financial viability appraisals. A key issue within these appraisals is the determination of a suitable return to the landowner, known as Benchmark Land Value. Using a case study approach to investigate two planning appeals and a subsequent High Court decision concerning a residential development site in London, this paper demonstrates how planning policy and practice guidance on viability can lead to reduced planning obligations being delivered. It identifies the technical concerns that need to be addressed to enable appraisals to determine land prices that are fair to landowners, whilst delivering policy-compliant levels of affordable housing, and discusses whether the revised National Planning Guidance has made those changes.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"367 - 386"},"PeriodicalIF":1.9,"publicationDate":"2019-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1690028","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44712038","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-02DOI: 10.1080/09599916.2019.1688851
M. McCord, D. Lo, J. McCord, P. Davis, M. Haran
ABSTRACT The primary purpose of this paper is to examine the dynamic and Granger causal (inter) relationships between house prices and to empirically assess the co-movement in-house prices across different property types within Northern Ireland (NI). The Johansen cointegration, Granger causality tests and vector error correction model are applied to quarterly house price data for the NI housing market between Q1 1995 and Q2 2018 to determine whether price transmissions are propagated contemporaneously into both short-term and long-term price adjustments. The findings show the stylised facts of lead–lag relationships across property types in NI using long-term Granger causality tests that the performance of the Apartment sector systematically and consistently lagged behind all other residential property segments over the period. Indeed, the results indicate that there are obvious market filtration transmission pricing signals in operation in a Granger-causal fashion. Property price signals are observed to be transmitted from the more liquid owner-occupier-led Detached and Semi-detached segments to the Apartment segment, but not vice versa.
{"title":"Measuring the cointegration of housing types in Northern Ireland","authors":"M. McCord, D. Lo, J. McCord, P. Davis, M. Haran","doi":"10.1080/09599916.2019.1688851","DOIUrl":"https://doi.org/10.1080/09599916.2019.1688851","url":null,"abstract":"ABSTRACT The primary purpose of this paper is to examine the dynamic and Granger causal (inter) relationships between house prices and to empirically assess the co-movement in-house prices across different property types within Northern Ireland (NI). The Johansen cointegration, Granger causality tests and vector error correction model are applied to quarterly house price data for the NI housing market between Q1 1995 and Q2 2018 to determine whether price transmissions are propagated contemporaneously into both short-term and long-term price adjustments. The findings show the stylised facts of lead–lag relationships across property types in NI using long-term Granger causality tests that the performance of the Apartment sector systematically and consistently lagged behind all other residential property segments over the period. Indeed, the results indicate that there are obvious market filtration transmission pricing signals in operation in a Granger-causal fashion. Property price signals are observed to be transmitted from the more liquid owner-occupier-led Detached and Semi-detached segments to the Apartment segment, but not vice versa.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"343 - 366"},"PeriodicalIF":1.9,"publicationDate":"2019-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1688851","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"59503302","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-27DOI: 10.1080/09599916.2019.1653955
Claudia Ascherl, Liesa Schrand, Wolfgang Schaefers, Sofia Dermisi
ABSTRACT The paper examines whether executive compensation packages within the US REIT industry are determined merely by performance or also by CEO power mechanisms that have an essential influence on board-level negotiations. We offer original insights into management compensation arrangements during and after the financial crisis. The relative importance of cash bonuses in CEO compensation contracts has more than halved after the crisis. Simultaneously, after the financial crisis, equity-based compensation became increasingly important. Concerning the pay-for-performance link, our results show no relationship during the financial crisis. However, after the crisis, we find a strong significant link between remuneration packages and corporate success.
{"title":"The Determinants of Executive Compensation in US REITs: Performance vs. Corporate Governance Factors","authors":"Claudia Ascherl, Liesa Schrand, Wolfgang Schaefers, Sofia Dermisi","doi":"10.1080/09599916.2019.1653955","DOIUrl":"https://doi.org/10.1080/09599916.2019.1653955","url":null,"abstract":"ABSTRACT The paper examines whether executive compensation packages within the US REIT industry are determined merely by performance or also by CEO power mechanisms that have an essential influence on board-level negotiations. We offer original insights into management compensation arrangements during and after the financial crisis. The relative importance of cash bonuses in CEO compensation contracts has more than halved after the crisis. Simultaneously, after the financial crisis, equity-based compensation became increasingly important. Concerning the pay-for-performance link, our results show no relationship during the financial crisis. However, after the crisis, we find a strong significant link between remuneration packages and corporate success.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"313 - 342"},"PeriodicalIF":1.9,"publicationDate":"2019-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1653955","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43091849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/09599916.2019.1650802
Riëtte Carstens, J. Freybote
ABSTRACT We investigate the response of institutional REIT investors to the abnormally (net) positive tone in REIT financial statements. For non-REIT firms, sophisticated investors have been found to respond negatively to an abnormally positive tone due to managerial incentives to take advantage of information asymmetries and use a positive tone to manipulate investor perception. However, institutional REIT investors have an informational advantage as they either directly invest in commercial real estate as part of their portfolio management strategy or, at a minimum, have access to commercial real estate market data. Thus, they are able to evaluate the abnormally positive tone in REIT financial statements against their perception of conditions in the commercial real estate and derivative REIT market. For a sample of US REITs over the period of 2001 to 2017, we find that the response of institutional investors to the abnormally positive tone in REIT financial statements is time-varying and non-linear, irrespective of whether we use variables in levels or changes. In particular, in periods of institutional REIT investor optimism (pessimism), institutional REIT investors respond positively (negatively) to an abnormally positive tone and behave as net buyers (net sellers).
{"title":"Tone in REIT financial statements and institutional investments","authors":"Riëtte Carstens, J. Freybote","doi":"10.1080/09599916.2019.1650802","DOIUrl":"https://doi.org/10.1080/09599916.2019.1650802","url":null,"abstract":"ABSTRACT We investigate the response of institutional REIT investors to the abnormally (net) positive tone in REIT financial statements. For non-REIT firms, sophisticated investors have been found to respond negatively to an abnormally positive tone due to managerial incentives to take advantage of information asymmetries and use a positive tone to manipulate investor perception. However, institutional REIT investors have an informational advantage as they either directly invest in commercial real estate as part of their portfolio management strategy or, at a minimum, have access to commercial real estate market data. Thus, they are able to evaluate the abnormally positive tone in REIT financial statements against their perception of conditions in the commercial real estate and derivative REIT market. For a sample of US REITs over the period of 2001 to 2017, we find that the response of institutional investors to the abnormally positive tone in REIT financial statements is time-varying and non-linear, irrespective of whether we use variables in levels or changes. In particular, in periods of institutional REIT investor optimism (pessimism), institutional REIT investors respond positively (negatively) to an abnormally positive tone and behave as net buyers (net sellers).","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"227 - 244"},"PeriodicalIF":1.9,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1650802","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42184105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/09599916.2019.1642370
Danielle Sanderson, Farazia Shakurina, Jolene Lim
ABSTRACT This research evaluates the impact of Sale and Leaseback (SLB) on UK commercial property prices and yields, compared with arms-length transactions. Data on 357 SLB deals and 1266 non-SLB deals are extracted from CoStar and EGI. Hedonic regressions and comparative analysis with the risk-free rate are undertaken. In addition to the SLB dummy variable, explanatory variables include building size, quality, age, sector, location and year of transaction. SLB transactions are found to occur at a statistically significant price premium, with the greatest premium occurring in the office sector. SLB properties achieve a 4.5 percentage point premium compared with the risk-free rate. The net initial yield of the SLB transaction sample is around 2 percentage points lower than for the non-SLB sample in every sector. Reasons for these differences are probed by considering the effect of WAULT and tenant covenant strength. From a vendor’s perspective, the results give an indication of the price premium they might be able to negotiate for their property compared with market prices. This will help them assess whether SLB is worthwhile compared with other available financing options. The findings of a yield reduction should help investors decide whether to engage in SLB investment.
{"title":"The impact of sale and leaseback on commercial real estate prices and initial yields in the UK","authors":"Danielle Sanderson, Farazia Shakurina, Jolene Lim","doi":"10.1080/09599916.2019.1642370","DOIUrl":"https://doi.org/10.1080/09599916.2019.1642370","url":null,"abstract":"ABSTRACT This research evaluates the impact of Sale and Leaseback (SLB) on UK commercial property prices and yields, compared with arms-length transactions. Data on 357 SLB deals and 1266 non-SLB deals are extracted from CoStar and EGI. Hedonic regressions and comparative analysis with the risk-free rate are undertaken. In addition to the SLB dummy variable, explanatory variables include building size, quality, age, sector, location and year of transaction. SLB transactions are found to occur at a statistically significant price premium, with the greatest premium occurring in the office sector. SLB properties achieve a 4.5 percentage point premium compared with the risk-free rate. The net initial yield of the SLB transaction sample is around 2 percentage points lower than for the non-SLB sample in every sector. Reasons for these differences are probed by considering the effect of WAULT and tenant covenant strength. From a vendor’s perspective, the results give an indication of the price premium they might be able to negotiate for their property compared with market prices. This will help them assess whether SLB is worthwhile compared with other available financing options. The findings of a yield reduction should help investors decide whether to engage in SLB investment.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"245 - 271"},"PeriodicalIF":1.9,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1642370","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44774409","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-07-03DOI: 10.1080/09599916.2019.1651755
Gaetano Lisi
ABSTRACT By using two of the main evaluation methods, namely the sales comparison approach and the multiple regression analysis, this paper points out the key role of implicit prices of housing characteristics in real estate appraisal. Firstly, this paper confirms the close link existing between the sales comparison approach and the multiple regression analysis. Furthermore, unlike examples in the related literature, this paper highlights the difference between marginal and implicit prices of housing characteristics. Although the related literature expresses awareness of the methodology for calculating marginal and implicit prices, there appears to be less awareness that implicit prices can: 1) lead to an estimate of the house price that is different from the regression model-predicted price; 2) replace the crucial and non-trivial phase of adjustment and reconciliation that characterises the main appraisal method, namely, the popular Sales Comparison Approach. Finally, an empirical analysis provides evidence of the key role of implicit prices in estimating house value.
{"title":"Sales comparison approach, multiple regression analysis and the implicit prices of housing","authors":"Gaetano Lisi","doi":"10.1080/09599916.2019.1651755","DOIUrl":"https://doi.org/10.1080/09599916.2019.1651755","url":null,"abstract":"ABSTRACT By using two of the main evaluation methods, namely the sales comparison approach and the multiple regression analysis, this paper points out the key role of implicit prices of housing characteristics in real estate appraisal. Firstly, this paper confirms the close link existing between the sales comparison approach and the multiple regression analysis. Furthermore, unlike examples in the related literature, this paper highlights the difference between marginal and implicit prices of housing characteristics. Although the related literature expresses awareness of the methodology for calculating marginal and implicit prices, there appears to be less awareness that implicit prices can: 1) lead to an estimate of the house price that is different from the regression model-predicted price; 2) replace the crucial and non-trivial phase of adjustment and reconciliation that characterises the main appraisal method, namely, the popular Sales Comparison Approach. Finally, an empirical analysis provides evidence of the key role of implicit prices in estimating house value.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"272 - 290"},"PeriodicalIF":1.9,"publicationDate":"2019-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1651755","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46368367","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-05-20DOI: 10.1080/09599916.2019.1615977
Anders Eika
ABSTRACT This paper investigates what makes developers and municipal planning authorities more (or less) likely to cooperate. It borrows methods from behavioural economics for eliciting the propensity of cooperation in different groups under different circumstances. Participants from private development companies, public planning, and related fields have played simple games in which they chose whether to cooperate in an urban transformation scenario (N = 269). By altering minor details, we learn about what makes people cooperate. The paper is able to quantify some human biases affecting the actions we observe in development projects: The findings indicate that people tend to be more cooperative towards people from the same sector, are less likely to cooperate in riskier scenarios, and in situations where some group members have fewer resources to contribute to the cooperative effort. Hopefully, the novelty of using economic experiments on planning and property development decision making could serve as an inspiration for other researchers in the field, although the methodology does carry limited external validity.
{"title":"Urban development and cooperation games","authors":"Anders Eika","doi":"10.1080/09599916.2019.1615977","DOIUrl":"https://doi.org/10.1080/09599916.2019.1615977","url":null,"abstract":"ABSTRACT This paper investigates what makes developers and municipal planning authorities more (or less) likely to cooperate. It borrows methods from behavioural economics for eliciting the propensity of cooperation in different groups under different circumstances. Participants from private development companies, public planning, and related fields have played simple games in which they chose whether to cooperate in an urban transformation scenario (N = 269). By altering minor details, we learn about what makes people cooperate. The paper is able to quantify some human biases affecting the actions we observe in development projects: The findings indicate that people tend to be more cooperative towards people from the same sector, are less likely to cooperate in riskier scenarios, and in situations where some group members have fewer resources to contribute to the cooperative effort. Hopefully, the novelty of using economic experiments on planning and property development decision making could serve as an inspiration for other researchers in the field, although the methodology does carry limited external validity.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"291 - 311"},"PeriodicalIF":1.9,"publicationDate":"2019-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1615977","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42816018","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-03DOI: 10.1080/09599916.2019.1589554
William G. Hardin, Gow-Cheng Huang, Kartono Liano, Ming-Shiun Pan
ABSTRACT Conveyance of information associated with REIT FFO announcements is investigated by decomposing stock returns into three components: firm-specific, industry-level and market-wide. The relative importance of firm-specific and industry information is evaluated around and following FFO announcements. The initial market reaction to REIT FFO announcements is primarily driven by the firm-specific return component. The underreaction to firm-specific information appears in drift after the announcement, especially for negative FFO surprises. FFO surprises explain the firm-specific return component, but not the industry-level return component which further suggests that FFO announcements only convey firm-specific information.
{"title":"Firm and industry informational content from REIT FFO announcements","authors":"William G. Hardin, Gow-Cheng Huang, Kartono Liano, Ming-Shiun Pan","doi":"10.1080/09599916.2019.1589554","DOIUrl":"https://doi.org/10.1080/09599916.2019.1589554","url":null,"abstract":"ABSTRACT Conveyance of information associated with REIT FFO announcements is investigated by decomposing stock returns into three components: firm-specific, industry-level and market-wide. The relative importance of firm-specific and industry information is evaluated around and following FFO announcements. The initial market reaction to REIT FFO announcements is primarily driven by the firm-specific return component. The underreaction to firm-specific information appears in drift after the announcement, especially for negative FFO surprises. FFO surprises explain the firm-specific return component, but not the industry-level return component which further suggests that FFO announcements only convey firm-specific information.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"131 - 152"},"PeriodicalIF":1.9,"publicationDate":"2019-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1589554","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49599727","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-03DOI: 10.1080/09599916.2019.1602844
Jaime Armengot, B. Williams, J. F. Padial
ABSTRACT This article explores the relationship between new housing and the existing housing stock in terms of an urban market value hierarchy, considering the importance of the concept of depreciation, as influenced by three factors: the age, location and quality of the building. Based on a sample from the Almond area of Madrid City Centre, the research considers many variables and applies an adapted appraisal approach termed differential depreciation to analyse the evidence of real estate values and the influence of spatial and temporal location factors. The study of the role of depreciation in the value of housing used in this research provides researchers with objective criteria on the functioning of the urban land market. This shows that the relationship between depreciation and the need for renovation is not linear, but instead follows identifiable patterns linked to the era of construction rather than solely the age of the building.
{"title":"Spatial and temporal impacts on building depreciation","authors":"Jaime Armengot, B. Williams, J. F. Padial","doi":"10.1080/09599916.2019.1602844","DOIUrl":"https://doi.org/10.1080/09599916.2019.1602844","url":null,"abstract":"ABSTRACT This article explores the relationship between new housing and the existing housing stock in terms of an urban market value hierarchy, considering the importance of the concept of depreciation, as influenced by three factors: the age, location and quality of the building. Based on a sample from the Almond area of Madrid City Centre, the research considers many variables and applies an adapted appraisal approach termed differential depreciation to analyse the evidence of real estate values and the influence of spatial and temporal location factors. The study of the role of depreciation in the value of housing used in this research provides researchers with objective criteria on the functioning of the urban land market. This shows that the relationship between depreciation and the need for renovation is not linear, but instead follows identifiable patterns linked to the era of construction rather than solely the age of the building.","PeriodicalId":45726,"journal":{"name":"Journal of Property Research","volume":"36 1","pages":"206 - 225"},"PeriodicalIF":1.9,"publicationDate":"2019-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/09599916.2019.1602844","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47772256","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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