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Testing Housing Price Drivers in Santiago de Chile: A Hedonic Price Approach

Testing Housing Price Drivers in Santiago de Chile: A Hedonic Price Approach

Hedonic modelling is an empirical analysis technique that is widely used to review the housing market and unpack the main determinants of price. A correct determination of housing price drivers allows a weighted prediction of the value of each dwelling for sale or rent. This paper reviews the fundamental determinants of housing prices that have been published in the literature to see which ones have a better predictive fit for the case of the housing market in the city of Santiago, Chile. From a record of 456,000 property transactions, a dataset composed of 11 explanatory variables is elaborated. Through a semi-logarithmic regression, 4 variables that contribute to explaining the formation of housing prices in Santiago, Chile, are identified. The results indicate that the socioeconomic characterisation of urban areas where housing is traded, the price of copper on the London Metal Exchange, the mortgage interest rate, the age of residential buildings are the main drivers for the main drivers of prices in Santiago. Given the crisis of access to housing in Chile, the article provides relevant information for decision-makers in housing policy.

26.10.2023 | Francisco Vergara-Perucich | Volume: 10 | Issue: 2 | Pages: 44-57 | 10.13060/23362839.2023.10.2.558

Vertical Integration & Performance in Residential Real Estate

Vertical Integration & Performance in Residential Real Estate

Vertical integration is a growth strategy whereby a firm engages in multiple stages of the value chain. Although the benefits of vertical integration are well documented, few studies have examined its relevance in real estate. In response to this lack of research, this paper explores tenant perceptions of property managers’ vertical integration and effectiveness. The results of this international study show the benefits of vertical integration extend to residential real estate, such that renters are more trusting, loyal, committed, and desirable when they perceive their property manager as vertically integrated. This paper also uncovers a concering finding that many tenants are living in unaffordable rental accomodations, requiring further research. This study contributes to a large body of vertical integration literature and extends the empirical examinations to real estate and property management.

30.3.2023 | Grant Alexander Wilson, Jason Jogia, Gabriel Millard | Volume: 10 | Issue: 1 | Pages: 1-13 | 10.13060/23362839.2023.10.1.549

Housing as a Political Tool: Gender Inequality in Student Accommodation in Iran

Housing as a Political Tool: Gender Inequality in Student Accommodation in Iran

This paper studies the gender inequalities in university-provided student accommodation in Babolsar, Iran, in relation to the role of the dominant political power and its approach in shaping the physical form of public dormitories and the living conditions of students. Secondary data analysis based on a questionnaire survey is utilised, and the results show that in numerous physical and non-physical ways women’s public dormitories are designed and controlled in favour of the dominant political power and against the wishes of their residents. This research examines how the ideological and cultural background permeates institutional practices in housing and affects the living conditions of a disadvantaged social group, which can open a discussion on the role of housing in social exclusion.

1.12.2021 | Parian Hoseini, Pooriya Mohseni | Volume: 8 | Issue: 2 | Pages: 16-33 | 10.13060/23362839.2021.8.2.535

Investigating Green Marketing Implementation with the Hedonic Price Model in Residential Projects: The Case of Istanbul

Investigating Green Marketing Implementation with the Hedonic Price Model in Residential Projects: The Case of Istanbul

The strategic importance of green marketing (GM) in value creation for the end customer (VCEC) and the contribution of the spatial and structural characteristics of a residential project (RP) to the final price have been acknowledged in the literature. However, GM features that can lead to price increases have not been evaluated from the VCEC perspective. This study examines the impacts of GM strategies on RPs. This study applies Hedonic Price Modelling to newly built RPs in Istanbul and evaluates the results from the perspective of the Attractive Quality Attributes Theory. The results showed that the total price of the RPs was affected more by design-related sustainable features of RPs and revealed that there is a relationship between GM and sustainable design. The study highlights the importance of GM, which companies can use to operate effectively in a competitive market and increase the satisfaction of end customers through value creation. The study’s findings can be considered useful information for policies on creating a sustainable built environment.

16.6.2021 | Ahmet Tuz, Begum Sertyesilisik | Volume: 8 | Issue: 1 | Pages: 85-100 | 10.13060/23362839.2021.8.1.525

The Impact of the COVID-19 Pandemic on the Private Rental Housing Market in Poland: What Do Experts Say and What Do Actual Data Show?

The Impact of the COVID-19 Pandemic on the Private Rental Housing Market in Poland: What Do Experts Say and What Do Actual Data Show?

The aim of the article is to determine the impact of the COVID-19 pandemic on the level of housing rents using the example of the City of Krakow. This study is based on objective data on rental prices and subjective information obtained from real estate agents using a questionnaire survey. The research revealed that the first wave of the COVID-19 pandemic actually led to a 6-7% decrease in prices in the rental market in Krakow, while at the same time the surveyed real estate agents had estimated that rents would drop by about 13%. With the second wave of the pandemic, it is possible to see that its immediate impact, i.e. between the third and fourth quarter of 2020, has led to a further 6.25% drop in rents. It should be noted that the latter decrease was very accurately predicted, both by the survey respondents and by the econometric models used. Finally, the results of the analysis also indicated that the worsening of the pandemic in the last quarter of 2020 will have a significant impact on rent levels in Krakow for all of next year. Regardless of how the economy develops, rental prices are forecast to fall further in 2021q1. However, in the subsequent quarters of 2021, rents are projected to increase, but ultimately their level will not return to pre-pandemic values even in 2021q4. The latter is likely to happen only in the second half of 2022.

18.3.2021 | Mateusz Tomal, Bartłomiej Marona | Volume: 8 | Issue: 1 | Pages: 24-35 | 10.13060/23362839.2021.8.1.520

The Spatial Correlation between the Spread of COVID-19 and Vulnerable Urban Areas in Santiago de Chile

The Spatial Correlation between the Spread of COVID-19 and Vulnerable Urban Areas in Santiago de Chile

This article identifies the spatial correlation between the social determinants of health in the housing area (housing prices, overcrowding, poor-quality building materials, and household socioeconomic vulnerability) and the spread of COVID-19 in Santiago de Chile. The research used data from the 2017 Census conducted by the National Institute of Statistics of Chile and data on confirmed cases of COVID-19 (PCR) by communes provided by/obtained from Chile’s Ministry of Health. The article provides a two-fold examination/analysis of the spatial correlation using the Pearson measure to observe how the virus spread from areas with high-quality housing in the early stage of the contagion to then become concentrated in areas with low-quality of housing. The second examination/analysis is a multiple linear regression to identify the housing factors that inform virus propagation. The test results show that of the four social determinants of health relating to housing assessed here, housing prices is the variable that best predicts how the social determinants of health based on housing explain the progress of the pandemic for the Santiago case, following the collinearity factors according to the data used in this study. The conclusions suggest that public policy should treat housing quality as a factor in public health and health risks that needs to be addressed with a transdisciplinary approach to urban planning in Chile.

29.10.2020 | Francisco Vergara-Perucich, Juan Correa-Parra, Carlos Aguirre-Nuñez | Volume: 7 | Issue: 2 | Pages: 21-35 | 10.13060/23362839.2020.7.2.512

Kindred Campers: The Alternative Pre-Bridgeheader Migration Stage of Low-Income Migrants in Jakarta, Indonesia

Kindred Campers: The Alternative Pre-Bridgeheader Migration Stage of Low-Income Migrants in Jakarta, Indonesia

The Government of Indonesia (GoI) has been facing problems in providing affordable houses for Indonesian low-income peoples. Research on the housing preferences of low-income people is important in order for the GoI to understand and be able to provide affordable housing that meets the needs of low-income people. According to Turner (1968a), the housing preferences of low-income migrants is largely influenced by economic factors, so Turner divides low-income migration into three stages: namely the bridgeheader, land consolidator, and status seeker. But the question arises as to whether it is possible for first time low-income migrants to arrive and live in the city centre directly, without any prior experience? If not, then is there a stage before the bridgeheader stage? If it is, then what are the first-housing preferences of low-income migrants? This paper critiques Turner’s theory of the low-income’s migration stage, that there is a possibility of stage before bridgeheader, we call it ‘kindred campers’.

21.2.2019 | Joko Adianto, Rossa Turpuk Gabe, Coriesta Dian Sulistiani, Chotib Hasan, Antony Sihombing, Cut Sannas Saskia | Volume: 6 | Issue: 1 | Pages: 1-8 | 10.13060/23362839.2019.6.1.444
Special issue on Nature-Home-Housing: Greening and Commoning of Urban Space

Post-Soviet Housing: “Dacha” Settlements in the Tashkent Region

Post-Soviet Housing: “Dacha” Settlements in the Tashkent Region

The post-Soviet period has been witness to a rather difficult process of establishing a new socio-economic and political system in Uzbekistan. The housing question was significantly resolved within the U.S.S.R., while currently the issue of housing has become exacerbated mainly due to the privatisation of the existing housing stock. However, as more young people now enter adulthood, the need for affordable housing once again comes to the forefront in Uzbekistan - namely in Tashkent, a place attracting the youth from all other regions. This research paper focuses on one of the housing solutions in the Tashkent Region: particularly the reconstruction of summer houses, or dachas, into permanent homes for year-round living. The findings are based on several observations from the field and expert interviews with local dacha residents during the summers of 2015 and 2016. The revival of a traditional lifestyle, combined with the modernisation and “Euro-style” of Uzbek houses, represents a case of “indigenous modernities”.

26.12.2016 | Hikoyat Salimova | Volume: 3 | Issue: 2 | Pages: 43-51 | 10.13060/23362839.2016.3.2.297

Effects of Housing Prices on Income Inequality in Urban China

Effects of Housing Prices on Income Inequality in Urban China

This paper explored the effects of housing prices on income inequality in China. By using China''s inter-provincial panel data from 1995 to 2011, we find that both housing prices and long-term mortgage rates are associated with the Gini coefficient of the income of urban residents, and the coefficients of correlation are significant positive. Moreover, a series of housing price control policies promulgated by the Chinese government has worsened the situation and has caused considerable interaction effects on long-term mortgage rates since 2003.

28.12.2015 | Chuanyong Zhang, Fang Zhang | Volume: 2 | Issue: 2 | Pages: 11-18 | 10.13060/23362839.2015.3.2.237