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Consumption preferences and environmental externalities: A hedonic analysis of the housing market in Guangzhou
Abstract
The urban housing market of China has been transformed since the 1980s from a centrally-planned to a free-market system. This study aimed to (1) investigate the position of outdoor environmental quality in house-buyers’ preferences; (2) assess monetary values attributed to environmental externalities by the hedonic pricing method (HPM); and (3) test the applicability of HPM in China. The study area was Guangzhou, the major city of south China with a booming real-estate market. A questionnaire survey was conducted with households in new residences sold in 2004. The main buying motives were improving living quarters and floor area. Security concerns and a preference for high-rise buildings were somewhat unexpected. Good outdoor environment, including green space provision, proximity to parks, and views of green space and water, carried significant hedonic values. Differences between the submarkets of old and new towns were found; new town households expected apartments in high-rise blocks, exclusive residential land use, and views of green space, while old town households preferred proximity to shopping areas and workplaces, green space within the development and proximity to nearby parks. The findings could help to fine tune the developing housing market to match supply with demand in quality terms. Values accorded to environmental attributes could justify funding for urban green spaces and nature conservation. The study verified the applicability of HPM to the housing context in China.
... The second aspect that was also considered in choosing a house was public facilities such as public transportation (Wang and Li, 2016), educational facilities (Wu, 2010;Jim and Chen, 2007;Gupta and Malhotra, 2016) and health facilities (Jiboye and Omoniyi, 2013). The third aspect that is considered by a household is the internal characteristics of the dwelling itself, such as building area, the number of bedrooms and the number of bathrooms, are also significant factors in the process of choosing a housing (Mcfadden, 1978;Moghimi and Jusan, 2015;Opoku and Abdul-Muhmin, 2010;Fierro et al., 2009). ...
... The control variables used are including individual economic characteristics (Tu and Goldfinch, 1996;Borsch-Supan and Pitkin, 1988;Han, 2010;Clark and Onaka, 1983) and locational-specific characteristics (Wang and Li, 2016;Wu, 2010;Jim and Chen, 2007;Gupta and Malhotra, 2016;Jiboye and Omoniyi, 2013). Furthermore, we also add the policy aspects that affect the probability of an individual in buying or renting the house, for example, the subsidy of down payment. ...
... Meanwhile, some variables that can be classified into locational-specific characteristics include the distance or travel time from the house to the workplace and various nearby public facilities, such as health facilities (Jiboye and Omoniyi, 2013) and school (Wu, 2010;Jim and Chen, 2007;Gupta and Malhotra, 2016). Besides, as public transportation is an important aspect for choosing a house as stated by Wang and Li (2016), we add the dummy variable that is far or near the house with the public transportation (1 for near and 0 for far). ...
Purpose
High numbers of housing backlogs as well as inadequate housing for low-income are one of the Indonesian government’s major concerns, especially in urban areas where the price of house is high. This study aims to identify low-income communities’ preferences on house ownership status, renting or buying and house provider, public or private, in Jakarta and surrounding areas.
Design/methodology/approach
This study adapts Longley multistage choice model in the Indonesian context to analyze people’s preferences in choosing a place to live in urban areas. This study analyzes two choices of models which are aspects of homeownership (buying or renting) and aspects of residential types (private or public).
Findings
Using data collected through a survey of 1,000 households in greater Jakarta (Jakarta, Bogor, Depok, Tangerang, and Bekasi), this study found that households which have fixed employment status, an older age, a larger number of family members, higher level of education and literacy in housing policy, accessible house location and more affordable to own house have a higher probability to choose to own a house. In addition, education level, age, and family size are major determinants of a household’s decision to occupy a public house rather than a private house. The findings provide basic input to government development programs in designing housing policy for low-income people.
Originality/value
There are only a few studies related to house-ownership preferences in low-income people, especially in developing countries, including Indonesia. This study contributes to the housing studies literature by strengthening empirical evidence from developing countries that have large populations and mostly live in urban areas.
... These externalities arise from the presence or absence of certain features, amenities, or conditions in a specific location that affect the utility or costs experienced by individuals beyond the immediate participants in market transactions. They can be positive or negative and play a crucial role in shaping various aspects of the housing market and urban development (Jim & Chen, 2007;Rossi-Hansberg & Sarte, 2012;Rossi-Hansberg et al., 2010). Examples of positive location externalities include proximity to amenities, good access to transportation networks, employment opportunities, safety and security and good environmental quality. ...
... A significant number of externalities are considered to belong to the category of technical externalities, meaning that their indirect effects fall on the consumption as well as the production activities of other parties without affecting the prices of products. Consequently, differences emerge between private marginal benefit and private social cost (Jim & Chen, 2007). ...
Location externalities refer to the effects of a particular location on the value, desirability, or quality of neighbouring properties and the well-being of residents in the area. This study investigates the influence of significant location externalities on residential rental values in Nairobi City, Kenya. The methodology employed is a questionnaire survey on a sample of 347 residential tenants within 36 suburbs in Nairobi city. The data are analysed using quantitative methods and presented in tables. According to the study results, residential rental value is significantly influenced by clusters of factors related to the environment, social as well as economic aspects. Specifically, air pollution, crime and insecurity, anthropogenic noise pollution, access to internet connectivity, urban traffic congestion, and inappropriate domestic solid waste disposal are significant location externalities influencing residential rental values in Nairobi City, Kenya. The study recommends regulation and enforcement as well as pricing mechanisms as strategies for managing location externalities in urban areas in Kenya
... The price of an apartment unit i ( = 1, 2, …), Pi is determined by various factors Xij (j = 1, 2, …), such as structural, locational, neighborhood, and environmental characteristics [51][52][53]. A view comprises a combination of various elements, including the sky, natural objects such as mountains, oceans, rivers, and parks, and man-made buildings that can be considered obstructions. ...
... In contrast to G2 and O1, A appears to be priced according to the number of floors based on the conventional belief that higher floors offer a better view, instead of considering the visible extent of the view. Specifically, the findings in G2, where mountains are predominantly visible, differ from Jim and Chen's evaluation of mountains, which reveals a negative premium when utilizing hedonic analysis with view as a dummy variable [52,56,57]. Although these differences could be accounted for by varying cultural and regional outlooks on the view object, the significance of utilizing an objective measure of view quantity in valuation should also be taken into consideration. ...
This study addresses the challenge of objectively quantifying the value of specific views, known to provide psychological and physical benefits, from city center apartments. Unlike subjective evaluations, objective measurement is hindered by limited research and methodology. The research focuses on quantifying visibility by projecting rays from measurement points and determining whether they intersect with unobstructed views, such as the sky and natural elements. Two metrics are proposed to evaluate visibility: the number of view rays and the ratio of view rays to windows. The study analyzed 17 types of residential units in 12 complexes in northern Seoul, South Korea, with the aim of isolating the effect of views on housing prices from other factors. Correlation coefficients were used to assess the relationship between view and housing prices. The results indicated that valuations based on average visibility are more favorable than those based on maximum visibility. The amount of visibility showed a stronger correlation with apartment prices than the number of floors, suggesting the need to measure views across the entire space. The study's methodology can be applied to analyze views in different buildings and urban areas.
... Transportation accessibility and neighborhood and structural characteristics are the key variables in determining housing prices [20][21][22][23]. In recent years, the positive effects of air quality on residents' choice of residential location have drawn considerable attention [24]. Its attraction has grown with the rising concern about environment pollution. ...
... Air quality has increasingly become an important factor influencing housing choices [18,19,24,45]. In confronting serious air pollution, it is common and efficient to control pollution from the source. ...
The Smog Free Tower (SFT) in the city of Xi’an, China, is the world’s first outdoor architecture that uses solar energy and filtration technology to purify polluted air. It provides a unique opportunity to explore residents’ willingness to pay for air quality and their related behaviors. Drawing on data collected after the establishment of the SFT, this paper reveals the characteristics of changes in people’s willingness to pay for clean air. We found that, prior to the release of an assessment report on the SFT, housing prices had an inverted U-shaped relationship with the distance to the SFT, which indicated people tended to purchase houses a certain distance away from the SFT. The threshold value of distance was inversely related to the greening ratio of the residential area. However, after the publication of the experimental report on the SFT, housing prices decreased as the distance to the SFT increased, indicating the closer the house was to the SFT, the more likely people were to buy it. These changes confirmed that people are willing to pay for clean air. The convenience of transportation had a significant moderating effect on the willingness to pay for clean air, however. In other words, people may buy houses with lower air quality if they have better transportation accessibility. The findings of this paper may have practical implications for environmental governance, urban planning, residential satisfaction, and real estate market regulation.
... The population density increase has been accompanied by a substantive increase of open green spaces in many Chinese cities because the Chinese government had invested in green space construction and development combined with supporting planning and policies for decades (Yang et al., 2014;Zhao et al., 2013). Thus, how to provide better housing with open green spaces in a densely populated environment that residents prefer becomes an important issue for both academics and professionals (Jim & Chen, 2007;. ...
... Urban and natural amenities and disamenities play a major role in shaping the spatial distribution of housing prices (Rappaport, 2008;Ridker & Henning, 1967;Waltert & Schläpfer, 2010). Some studies found negative effects of central business district (CBD) on housing prices, reflecting negative externalities associated with localized congestion, noise, crimes, or urban decay (Fauria & Mathur, 2012;Kain & Quigley, 1970;Mahan et al., 2000;Ridker & Henning, 1967;Waddell, 2000), while others found that proximity to the CBD is positively correlated to the housing prices because of the commuting convenience of CBD to the workplaces and shopping areas (Chen & Hao, 2008;Hu et al., 2016;Huh & Kwak, 1997;Jim & Chen, 2007;Qin & Han, 2013;Wen & Tao, 2015;Wu et al., 2017). Besides CBD, the positive effects of schools and hospitals as urban amenities on housing prices have been identified in previous studies since accessibility to quality educational and medical facilities are valued by residents (Black & Machin, 2011;Chin & Foong, 2006;Gibbons & Machin, 2008;Haurin & Brasington, 1996;Li et al., 2019;Wen et al., 2019). ...
Along with China’s rapid urbanization in major cities, how to provide better housing with amenities that residents prefer in a high‐density environment becomes an important issue for both academia and policy practitioners. The compact city debate on residents’ preferences related to density and amenities is a hot topic in China. This research investigates the moderating effects of density on natural amenity premium and housing prices in Wuhan, China. By collecting housing data through web crawling techniques, we develop regression models with interaction terms and geographically weighted regression models to find that housing prices in Wuhan are a result of the interaction of density and amenities. Negative impacts of density and positive impacts of proximity to the Yangtze and Han Rivers on housing prices lead to the moderating effects of density on the river proximity premium within 800 meters from the rivers. In addition, the results show the positive impacts of urban amenities of schools, CBDs, and metro stations on housing prices beyond 800 meters from the rivers. These findings help planners develop the density approaches and amenity‐oriented land use strategy.
... Buyers are more concerned about the adaptation of housing in terms of attributes and social conditions of the residence before making a decision. Therefore, the housing market is focused on understanding the key needs of customers towards the various features and designs of housing on offer (Jim and Chen, 2007). ...
... Studies based on manual-subjective approaches utilized photo evaluations (Felsten 2009;van Esch et al. 2019;Lindemann-Matthies et al. 2021), questionnaires (Kaplan Mintz et al. 2021;Kley and Dovbishchuk 2021;Mihandoust et al. 2021), door-todoor household surveys Brace et al. 2020), and face-to-face interviews (Jim and Chen 2007;Van Renterghem and Botteldooren 2016;Torres Toda et al. 2020). Due to the subjective bias of the evaluation process, these approaches may not always provide comparable results for window views. ...
Context
Providing accessible urban green spaces is crucial for planning and ensuring healthy, resilient, and sustainable cities. The importance of visually accessible urban green spaces increases due to inner urban development processes.
Objectives
This article proposes a new index, the Green Window View Index (GWVI) for analyzing and assessing visible vegetation, that promotes an integrated planning of urban green spaces and buildings at different scales and levels. It is defined as the proportion of visible vegetation area in a field of view when looking out of a specific window with a defined distance to the window.
Methods
The method for estimating GWVI consists of three steps: (a) the modeling of the three-dimensional environment, (b) the simulation of the two-dimensional window views using modern rendering engines for three-dimensional graphics, (c) the computation of the GWVI. The method is proposed and tested through a case study of the urban area of Bonn, Germany, using a Digital Terrain Model (DTM), CityGML-based semantic 3D City Model at level of detail (LoD) 2, airborne Light Detection and Ranging (LiDAR) data, and 2D land use data from the official German property cadaster information system (ALKIS).
Results
With an average processing time of 0.05 s per window view, an average GWVI of 26.00% could be calculated for the entire study area and visualized in both 2D and 3D.
Conclusion
The proposed engine generates multi-scale visibility values for various vegetation shapes. These values are intended for use in participatory citizenship and decision-making processes for analysis by architects, real-estate appraisers, investors, and urban as well as landscape planners.
... Shanghai is widely considered as a city with a single-center structure [22], and is divided into three concentric rings according to the inner and outer rings, including the inner city, expanded inner city and suburbs [23,24]. Our study area is the inner city, popularly known as Urban Shanghai, including districts of Yangpu, Hongkou, Putuo, Changning, Xuhui, Huangpu and Jing'an (see Figure 1). ...
This study explores the impact of accessibility on property pricing and land economies by advanced spatial analysis techniques, focusing on Shanghai as a representative metropolis. Despite the impact of metro systems on residential property values, which has been frequently assessed, a research gap exists in understanding this phenomenon in Asian, particularly Chinese, urban contexts. Addressing this gap is crucial for shaping effective urban land use policy and improving the land economy rationally in China and similar settings facing urban challenges. To assess the impact of metro station accessibility on property prices in Shanghai, with extensive rail transit, and to deeply explore the overall impact of land value varieties driven by metro on urban development, we conducted a comprehensive analysis, with discussion about future aspirations for land planning and management along with landscape and facility design, and measures to improve land economy. The procedures involved creating neighborhood centroids to represent accessibility and using the Euclidean distance analysis to determine the shortest paths to metro stations. Our evaluation incorporated a hedonic pricing model, considering variables like neighborhood characteristics, housing attributes, and socio-economic factors. Advanced spatial analysis encompassing Ordinary Least Squares (OLS) regression and XGBoost analysis were employed to explore spatial effects, and Geographically Weighted Regression (GWR) helped examine spatial patterns and address autocorrelation challenges. Results revealed a negative association between distance to metro station and property prices, indicating a non-linear and spatially clustered relationship and heterogeneous spatial pattern. We dissected the non-linear results in detail, which complemented the conclusion in existing research. This study provides valuable insights into the dynamic interplay between metro accessibility and housing market behaviors in a significant Asian urban context, offering targeted suggestions for urban planners and governors to decide on more reasonable land use planning and management strategies, along with landscape and infrastructure design, to promote not only the healthy growth of the real estate market but also the sustainable urban development in China and similar regions.
... The decision to purchase a home is a significant investment choice for households, representing social and economic symbols that shape individuals' perceptions of their environment. Both home ownership and renting have positive and negative aspects, making the decision complex and multidimensional (Cirman, 2004;Jim & Chen, 2007;Opoku & Abdul-Muhmin, 2010). ...
This paper examines how generational cohorts influence households’ choices regarding housing tenure and considers the diverse preferences and socio-economic factors that shape decisions—using survey data on 425 families in Ho Chi Minh City, Vietnam. The data is analyzed using a multinomial logit model. The results indicate that generation significantly positively affects housing tenure choice, such that, unlike older cohorts, younger generations are more inclined to rent houses as their preferred housing option. Furthermore, permanent income plays a significant role in shaping housing tenure choices. On the other hand, social-economic variables, namely education, gender of references, family structures, and area of residence, were significant in influencing housing tenure decisions. This finding highlights the importance of housing policies prioritizing affordable and accessible rental options in large cities.
... Critically evaluate alternative policy strategies determining where new amenities are provided or existing amenities are improved. 34 ...
Environmental amenities provide a range of direct and indirect benefits in cities, and amenity provision often figures within policy portfolios to advance sustainability in urban areas. As environmental pressures and urban populations increase, it will be necessary to find ways to ensure that environmental policies do not contribute to existing inequalities in these areas. This report synthesises empirical research on the impact of environmental amenities on housing prices, examines implications on housing affordability, and offers perspectives on how negative impacts can be mitigated. The report finds that the provision of environmental amenities tends to raise housing prices, which reduces affordability, especially among renters and low-income households with reduced access to mortgages. The report concludes that there is scope to accompany amenity provision with complementary measures to mitigate distributional impacts and outlines policy avenues in that regard.
... Therefore, the hedonic method is suitable for the housing market and presents the implicit prices and characteristics of the goods relative to the total price. Thus, this method considers the demand for a good as a function of its features (Jim and Chen, 2007). ...
The housing market and related issues are nowadays global matters that have attracted the attention of planners and policymakers. So housing price estimation is fundamental for public and private investors. The environmental characteristics of a place, such as green space, are one of the determining factors in housing prices. Therefore, this research was conducted to investigate the effect of green space on the price of surrounding houses in the Ghadir park of Yazd in central Iran. The sample size was determined using Cochran relation. The data have been collected by a questionnaire, referring to real estate agencies and maps. The ordinary least squares regression method and Eviews 9 software were used to analyze the data. Then, a model was proposed for estimating the hedonic price function of the study area. According to the results, from 15 independent variables, reconstruction, number of floors, number of bedrooms, distance to the main street, distance to the city center, and distance to park have a significant relationship with the price of housing units (P≤0.05). The adjusted coefficient of determination (R 2) was equal to 0.918. Using the hedonic method, it is concluded that although environmental goods such as parks and green spaces are not exchanged in the market, families pay for them in reality.
... Theoretically, the functional form of the hedonic price equation is not limited. In the literature, linear-linear [41], linear-log [42], log-linear [43], log-log [44], and Box-Cox transformation [35,45,46] models have been used as functional forms of the hedonic price equation. Among them, the Box-Cox transformation model is sometimes preferred because it has more flexibility and robustness than other models [47]. ...
The South Korean government plans to switch from a centralized power generation method to a distributed one. However, due to opposition from local residents, construction of distributed power plants is frequently delayed or suspended. This study attempts to investigate whether proximity to a power plant negatively affects housing property values, using the hedonic pricing technique and quantitatively analyzing the level of impact. To this end, 2291 apartment sales data from a specific city in the South Korean Seoul Metropolitan area with a power plant were used. As a result of the analysis, it was found that proximity to a power plant had a negative effect on apartment prices, which was statistically significant at the significance level of 5%. The difference in apartment prices per 1 km direct distance from the power plant to the apartment was derived as KRW 8 million (USD 7.1 thousand). This value is about 0.7% of the average price of apartments in the area (KRW 1102 million = USD 0.98 thousand). The results of this study can be used as a useful reference when the government determines the size of subsidies for local residents near power plants.
... Two functional forms of the hedonic pricing model were employed to assess the associations between housing price per square meter and the accessibility of the green space and its size and shape (LSI), namely, the linear regression [42] and semi-log regression [43,44]. Accordingly, it is not only feasible to interpret the implicit property value [45] but also to identify the percentage of change in the property value. ...
This study aimed to examine the association between housing prices and green space characteristics with a special focus on exploring the effects of the shape pattern index. The research was based on a hedonic price model across two main distance buffers from residential properties to urban green spaces. Green spaces were characterized by size and shape measured by a landscape shape index (LSI). This study was based on 16,222 housing transaction data obtained from the website of real estate agencies during December 2019 in the Metropolitan Area of Beijing. Linear regression and semi-log regression analysis were used to examine the associations between independent housing and neighborhood characteristic variables and housing prices. The results suggested that a one-unit increase in the natural logarithm of the landscape shape index (LSI) can increase housing prices by 4% (5543 CNY ≈ 826 USD). Such marginal effects were more pronounced for residences located close to urban green spaces and tended to decay as the distance from residences to green spaces increased. Additional analysis captured the marginal effects of the natural logarithm of the landscape shape index (LSI > 1.3) on achieving the maximum monetary evaluation of the property. The findings of this study suggest that the effects of specific green space characteristics on housing prices should be taken into account in landscape and urban design.
... On the other hand, social and environmental factors also contribute to land prices. It includes open space (Espey and Owusu-Edusei, 2017;Jim and Chen, 2007;Kong et al., 2007;Wu and Dong, 2014), urban forests (Tyrväinen, 1997;Tyrväinen and Miettinen, 2000), and demographic variables (Reed, 2001). Existed studies determined how open space influence land prices through distance to green facilities (Cho et al., 2008;Kestens et al., 2004;Shultz and King, 2001), the area's landscape (Kadish and Netusil, 2012;Melichar and Kaprová, 2013). ...
In Vietnam, the central Government issues land price brackets, and people's committees promulgate land price tables for five years. The published land prices are always lower than transaction prices in the market, resulting in many problems such as loss of state budget, inequality in charge of compensation, and land clearance for citizens. The study aims to uncover factors that influence land prices to build optimal land valuation models for land valuation. Using the Bayesian Model Average, the findings show that several factors strongly influence urban residential land prices in Hanoi's outskirts (Quoc Oai district), such as road type, hospitals, and industrial areas. Other factors as green space and schools, are insignificant in land purchases. The finding also indicated that the optimal model in this study showed a slight difference in valuation prices from the actual market prices. The study also determined that the mass land valuation model would be promising in Vietnam and dual-price countries.
... Thus, either owning a house or renting a house has positive and negative aspects. Therefore, the decision to own or rent a house is complex and multidimensional, involving a variety of factors such as preferences for home attributes, location and environment, and occupancy (Opoku & Abdul-Muhmin, 2010;Wang and Li, 2016;Wu, 2010;Jim and Chen, 2007;Gupta and Malhotra, 2016). Not only that, households that want to find a solution to decisions related to homeownership immediately are also limited by at least three constraints, namely the availability of houses (purchase or rent, flow of housing vacancies); regulations from the homeowners regarding the access to housing vacancies (for example, rules related to criteria for buying or renting a house; type of payment); and the economic limitations of prospective buyers or tenants (Cirman, 2004). ...
This study aims to identify the preferences of low-income people in making housing tenure choices within the next 5 years. Each person has the right to have a place to live in. However, the options available for low-income people to own a home are limited. Therefore, information on the preferences of low-income people in purchasing houses needs to be identified so that the government can formulate effective and efficient intervention policies. A sample of 1030 samples was obtained using the stratification sampling method, of which 638 are households had rental status (taking households with the lowest level of welfare between 10-40%) in the Regency and City. Discrete choice models were used to determine the preferences in owning a home. The study revealed that demographic variables and household characteristics variables (household size and length of stay) had consistent negative relationships with preferences for buying a house in the future. Also, the government needs to take action so that the socialization of housing policy becomes more optimal, effective and targeted. The goal of the policy socialization should be directed to newly married couples.
... The hedonic pricing model is also widely adopted in Chinese studies to estimate the valuation of urban amenities in the context of housing market. Some provide the estimated value of urban green space (Kong et al., 2007;Jim & Chen, 2007). Scenic views are considered as desirable environmental amenity that can be priced using hedonic pricing model (Jim & Chen, 2009). ...
As an important environmental amenity, sunlight brings us a large number of benefits and improves the quality of our daily lives, and its welfare measurement depends on concrete living conditions. The purpose of this article is to empirically document the non-marketed value of sunlight in light of the view orientation of an apartment in the context of the housing market. Using a hedonic pricing model estimated with the real estate transaction data over 40,000 housing units in 2019–2021 in Shanghai, it is found that: (1) homeowners, on average, are willing to pay an extra 7.2% to choose the apartments with a high level of sunshine (facing south), relative to those with no direct access to sunlight (facing north); (2) the value of sunlight shrinks with pollution and becomes larger if living in a higher apartment; (3) residents living in higher units have a larger willingness to pay for the sunlight and environmental quality improvement. These empirical findings shed light on the welfare measurement of sunlight and have profound implications for the capitalization of environmental amenities reflected in housing prices.
... The review on HPM has received wide attention from many previous researchers (Usman et al., 2020;Owusu-Ansah, 2013;Herath & Maier, 2010;Xiao, 2017). The applications of HPM are popular due to their simplicity, successfully decomposed price attributes as well, and identification of how people are willing to pay for each of the property's features (Jim & Chen, 2007;Jim & Chen, 2009;Jiang & Chen, 2015;Hu et al., 2011). However, the neglection of spatial dependence and heterogeneity has become a crucial issue due to the theory that each property may vary over space (Wen et al., 2017;Anselin, 2001), and the significance of spatial dependence has been empirically proven in terms of neighbourhood spillover (Skevas et al., 2018) and the existence of clustered market segment rather than randomly distributed Ozyurt, 2014). ...
... The property location and house structure are the most explored attributes, and scholars from different continents have found contrasting conclusions. In eastern countries such as China, Malaysia, and Indonesia, the house location, environment, neighborhood safety, and location accessibility were considered more critical than structural housing attributes (i.e., number of bedrooms, living area) and home amenities (Kam & et al. 2018;Jim & Chen, 2007). By contrast, studies conducted in Australia revealed that the interior design and house structure were considered more important than the affluence and prestige of the neighborhood (Ratchatakulpat et al., 2009). ...
Vacation homes emerged as an alternative accommodation sector with strong growth potential in small island destinations. As tourists scrutinize vacation home features, bundling their best attribute sets materializes as a critical strategy for vacation home developers. This study examined tourist preferences for vacation homes in Aruba, employing a choice experiment analysis. The experiment centered on location, price, unit type, amenities, and services. Based on identified preferences, the study applied a market simulator to uncover which combination of attributes carries the most impact on a vacation home purchase. The results suggest that the best combination involves location and price, which reveals a polynomial function anchoring a direct negative relationship between location and price. As the location moves further away from the tourist core area (i.e. the beach), the price elasticity of potential vacation owners also increases. Location seems to be a product-differentiating characteristic, which influences consumer utility and shapes demand.
... At the beginning stage (1994)(1995), economy and commitment are the main focuses (King & Borchardt, 1994;Oskamp, 1995). In the middle age (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011), policy, technology, innovation, and consumption choices become the main hotspots in the cluster of the economy (Arkesteijn & Oerlemans, 2005;Jim & Chen, 2007;Press & Arnould, 2009;Rivera, 2002), proving the discussions of the economic aspect of green marketing in sustainable consumption have shifted from pure economic theories to various complex factors affecting the economy. Recently (2012-2019), the implementation and business model of the economy in this research domain has become the hotspot (Bastas & Liyanage, 2019;Nilsson & Nykvist, 2016). ...
The involvement of green marketing in sustainable consumption is becoming a hot topic in recent decades. However, the co-themed studies of these two terms are relatively less sufficient, and more detailed integrated research should be processed. This study uses CiteSpace to do bibliometric analysis regarding the knowledge structure and evolution of green marketing in sustainable consumption with visualization. Results show that green marketing in sustainable consumption is a prosperous topic with increasing annual publications. Besides, there are relatively complicated collaboration networks among institutions and strong extensive cross-regional collaborations, and the most productive authors may not be highly cited, which contradicts with former results of other studies. Furthermore, “green,” “consumption,” “sustainability,” and “consumer” are more welcomed in this research domain and are at the dominating status in the recent studies; some new research directions have emerged, and research focuses are more diversified, implying the multidisciplinary and comprehensiveness nature of this research domain. This study enjoys novelties by combining green marketing and sustainable consumption, constructing a knowledge framework of this domain, revealing current gaps, and proposing key research directions in the future, which cover the deficiencies of former studies and enrich the knowledge system, and are significant references for scholars to explore the research of this domain in the future more effectively and efficiently.
... UGS supply several regulating ES, key to human well-being, such as air quality (Nowak, 1994;Scott et al., 1998;Su et al., 2011), climate (Dentamaro et al., 2010;Gill et al., 2007;Jim & Chen, 2007;Lafortezza et al., 2009), noise, (Fang & Ling, 2005;Gidlöf-Gunnarsson & Ö hrström, 2007;Margaritis & Kang, 2017) and flood regulation (Higgins et al., 2019). UGS are also known to supply provisioning ES such as food, biomass, and edible plants (e.g., von Hoffen & Säumel, 2014;Chan et al., 2015;Russo & Cirella, 2020;Helen & Gasparatos, 2020) and cultural ES, e.g., recreation (Bijker & Sijtsma, 2017), social cohesion and bonds (Coley et al., 1997;Jennings & Bamkole, 2019;Kuo, 2003;Maas et al., 2009;Hanson et al., 2021;Peters et al., 2010). ...
Urban green spaces (UGS) supply several ecosystem services (ES) key to human wellbeing. In this article, we conducted a systematic review focused on identifying UGS's ES and wellbeing dimensions. From the 3626 articles screened, 218 were used in this review. Most studies were conducted in Europe, China, the United States of America (USA) and South Africa. Among all UGS, parks and gardens were the most investigated, with less of a focus on urban trees, forests, coastal mangroves, golf courses, roadside vegetation, and brownfields/unmanaged urban greenery. Cultural ES were the most studied, although it is well known that UGS also supply many provisioning and regulating ES. Health (mental and physical) and good social relations were the most investigated wellbeing dimensions, and food security received the least attention. Regarding the methodologies used to investigate the UGS contribution to human wellbeing, surveys, indicators, and surveys combined with statistical methods were the most common. Only a few works focusing on spatial modelling were validated, which is critical to ensure the reliability of the spatial models applied to UGS ES studies. Overall, this work identified the research gaps and future perspectives in ES and wellbeing dimensions provided by UGS, key to improving further research.
... Studies have found that scenic sights could attract premiums on residential property, with people willing to pay for it. Scenic sights such as water bodies, harbour views, natural parks and open spaces, garden vistas attracted premiums of between 3 percent and 23 percent in various countries [44][45][46]. Guen and Tan [43] note that demand for property located in hillside areas is due to impressive view, lack of suitable flat area, beautiful scenery, and fresh air. Living on higher ground exposes one to better views, natural ventilation and natural lighting. ...
This study aims to investigate and discuss the factors that influence buyers’ and investors’ decision in buying and investing in property in hill land areas. A sequential mixed methods approach, which involved extensive literature review, questionnaire survey and semi-structured interview was used. Literature review to identify influencing factors was followed by a questionnaire survey. A total of 373 valid questionnaires were analysed. Ten (10) semi-structured interviews were performed thereafter to clarify and validate the survey findings. The study found that only a slight majority were aware of the risk of landslide owing largely to the fact that, not every neighborhood had experienced landslide incidents. Understanding on the relationship between factors that influencing buyers/investors to acquire property in hillside area and provides useful insights that that the combination of influencing factors and a vibrant residential property market relatively outweighs the risks associated with landslide occurrence in the study area.
... A number of prominent examples can be identified globally including Vancouver, Sydney and Liverpool where investment in river and harbor front developed with significant GI elements (Couch and Karecha, 2006). Moreover, major cities in China and India, i.e., Guangzhou and New Delhi, have also placed an emphasis on riverfront development within their strategic development plans (Jim and Chen, 2007;Nandi, 2014;Mell, 2016a). The use of GI in riverfront areas supports the delivery of a number and socio-economic benefits, for example: property uplift, the relocation of commercial businesses to prime real estate locations, and increased use by local communities and visitors. ...
The alignment of Green Infrastructure (GI) planning principles with urban regeneration mandates can have a significant impact on the long-term socioeconomic and ecological functionality of an area. As a mechanism to address landscape dereliction GI has been promoted as offering a suite of options to revitalize denuded spaces. This can take many forms including tree planting, waterfront redevelopment, the regeneration of former industrial sites, and a rethinking of spaces to make them more ecologically diverse. However, the successes seen in GI-led regeneration need to be considered in terms of the geographical, political, and socioeconomic context. The following provides a review of regeneration projects that have integrated GI into development principles, examining whether these have led to positive change. Through a reflection on the scale, focus and location of these projects we discuss the factors that have shaped investment before identifying key factors that influence the inclusion of GI in regeneration works. The paper concludes that we have a growing catalogue of projects that can be used as a "green print" to align GI with regeneration to successfully delivery landscape rehabilitation and socioeconomic revitalization.
... On the other hand, Troy and Grove (2008) have estimated a positive variation in prices of +5% in the situation in which a house is adjacent to an urban park, compared to another, ceteris paribus and in the same conservative state, is 1 km away from the same park. Similar results have been obtained in numerous analysis aimed at examining the impact on real estate prices of the houses direct view towards a green space -+23.1% (Jim and Chen, 2007), +18% (Damigos and Anyfantis, 2011), +7.1% (Jim and Chen, 2006), +4.9% (Tyrvainen and Miettinen, 2000). ...
... In the Netherlands, a house with a picturesque view of water bodies may attract a premium of 8-10%, whereas open spaces may result in a premium of 6-12% (Luttik, 2000). Similar findings were reported in a study conducted in Guangzhou, China (Jim and Chen, 2007), which showed that flats with a view of a garden earned a premium of 23.1%. In the US, the estimated prices of homes adjacent to nature parks and open spaces are usually 8-20% higher than the prices of comparable properties without such amenities (Crompton, 2001). ...
Please cite this article as: Gałecka-Drozda A, Wilkaniec A, Szczepańska M,Świerk D, Potential nature-based solutions and greenwashing to generate green spaces: Developers' claims versus reality in new housing offers, Urban Forestry and amp; Urban Greening (2021), Abstract The implementation of nature-based solutions (NbS) largely depends on the strategic planning of urban green infrastructure (UGI) and the measures adopted for planning and maintaining urban green areas under investment pressure. UGI planning is highly important for housing areas, and its elements are often used in selling campaigns for developers' investments. In many cases, when developers refer to ecological values and greenery in promotional campaigns, these are often considered as greenwashing (GW). The aim of the present study was to determine the frequency and mechanism of providing greenery and ecological solutions in renderings, the types of vegetation presented, and the approach of the developers to the existing greenery and other ecological values. The authors selected and analysed 73 development offers from 25 developers in Poznań, which is a major city in Poland with intensive development of housing investments. All the investments were analysed for the contents of advertisements and illustrations (plans and renderings). In the first stage of the study, analyses were conducted according to three groups of criteria: 1) creating an image of a green estate, 2) types of green spaces, and 3) approach to the existing green resources. The results revealed the importance of greenery in developers' strategies. In the second stage, another four criteria for NbS and four indicators of GW were identified. The analysis helped us in assessing whether the offers met the NbS or GW assumptions. Statistical analyses showed that offers with the largest amount of GW indicators, indicating near and accessible green spaces, were primarily located distantly. The study verified that most of the marketing strategies of selected developers in Poznań should be considered as GW, and only a few estates exhibited NbS characteristics. However, the indicators of GW are often observed in the same cases. Further, the question arises whether NbS would be implemented in housing estates, in the absence of systemic regulations mandating the use of environmentally friendly solutions.
... In the Netherlands, a house with a picturesque view of water bodies may attract a premium of 8-10 %, whereas open spaces may result in a premium of 6-12 % (Luttik, 2000). Similar findings were reported in a study conducted in Guangzhou, China (Jim and Chen, 2007), which showed that flats with a view of a garden earned a premium of 23.1 %. In the US, the estimated prices of homes adjacent to nature parks and open spaces are usually 8-20 % higher than the prices of comparable properties without such amenities (Crompton, 2001). ...
The implementation of nature-based solutions (NbS) largely depends on the strategic planning of urban green infrastructure (UGI) and the measures adopted for planning and maintaining urban green areas under investment pressure. UGI planning is highly important for housing areas, and its elements are often used in selling campaigns for developers’ investments. In many cases, when developers refer to ecological values and greenery in pro-motional campaigns, these are often considered as greenwashing (GW). The aim of the present study was to determine the frequency and mechanism of providing greenery and ecological solutions in renderings, the types of vegetation presented, and the approach of the developers to the existing greenery and other ecological values. The authors selected and analysed 73 development offers from 25 developers in Pozna ́n, which is a major city in Poland with intensive development of housing investments. All the investments were analysed for the contents of advertisements and illustrations (plans and renderings). In the first stage of the study, analyses were conducted according to three groups of criteria: 1) creating an image of a green estate, 2) types of green spaces, and 3) approach to the existing green resources. The results revealed the importance of greenery in developers’ stra-tegies. In the second stage, another four criteria for NbS and four indicators of GW were identified. The analysis helped us in assessing whether the offers met the NbS or GW assumptions. Statistical analyses showed that offers with the largest amount of GW indicators, indicating near and accessible green spaces, were primarily located distantly. The study verified that most of the marketing strategies of selected developers in Pozna ́n should be considered as GW, and only a few estates exhibited NbS characteristics. However, the indicators of GW are often observed in the same cases. Further, the question arises whether NbS would be implemented in housing estates, in the absence of systemic regulations mandating the use of environmentally friendly solutions.
... There is consensus over the fact that, broadly speaking, green areas imply benefits in six different areas [6]: 1) they help to fight pollution [7] and contribute to microclimate normalization [8,9]; 2) reduce noise [10]; 3) improve the population's emotional wellbeing and psychophysiological balance by increasing the feeling of security [11]; 4) they improve mental and physical health [12]; 5) promote outdoor life and social meetups [13] and 6) and they increase citizens' environmental awareness. So, urban green areas regulate the temperature and humidity, produce oxygen and filter radiation; also, they absorb pollutants and muffle noise; and, in addition, they are a place for going for a walk, an area for relaxing and for leisure. ...
There is consensus over the fact that urban green areas contribute to the quality of life of their inhabitants. So, efficient city management must assess whether the population has access to green areas and their quality in relation to vegetation, facilities or furnishings, for example. Therefore, the objective set is to establish the environmental justice of urban parks in Tarragona (Spain) by developing a Park Quality Index (PQI) and the sociodemographic characteristics (level of studies, Human Development Index [HDI], home sale and rental prices) of the population living within 300 metres of a park. To prepare this, a GIS-integrated Multi-Criteria Evaluation (MCE) has been produced. The results show that the green areas have low accessibility and availability and that most parks obtain an average-low PQI, with the best- valued aspect being the vegetation and the worst the facilities. As for the degree of environmental justice, a casual relationship emerges between the PQI and the indicators used. The average value of the home sale prices is the one that shows the greatest correlation. These results can be used together with participatory procedures as a basis for identifying places with greater inequality, and for selecting the more effective actions that enable increasing environmental justice with respect to green areas.
... Residential preferences: Some researches consider the impact of demographic background on respondents to be the touchstone of their preferences. On a large scale, residential preferences include time, place, money, and social relationships (Heaton, et al, 1979) Size of living space (Wang & Li,2006;Sirgy, et al, 2005;Hempel & Tucker, 1979;Hwang & Albrecht, 1987), functional compatibility (Lindberg, et al, 1989), and neighborhood characteristics (Devlin, 1994;Jim & Chen, 2007). Housing preferences factors for accommodation include the quality of the outdoor environment (Thamaraiselvi & Rajalakshmi, 2008), location (Wu, 2010;Karsten, 2007;Devlin, 1994), neighborhood characteristics (Sirgy, et al, 2005), surrounding landscape (Beals, 2010), feeling of security and proximity to the city, public transport, closeness to the workplace, safety, medical and educational facilities (Ghani & Suleiman, 2016). ...
Researchers believe that the architecture of residential halls has a significant impact on various aspects of students’ lives, especially on the quality of their education. The purpose of this study was to extract and evaluate residential preferences affecting the architecture of dormitories for students in dormitories at University of Mohaghegh Ardabili in Iran. The seven extracted indicators formed the basis of the researcher-made questionnaire with 35 questions. Pre-tests were performed at University of Mohaghegh Ardabili and its Cronbach’s alpha was obtained with a coefficient of 0.930. The size of the study sample was 250 students from among students, which was confirmed by Kaiser-Meyer-Olkin (KMO) method. The analysis of the exploratory factors was examined by two software 8.8 Lisrel and 26 SPSS and by the factor model test of the second order and the binomial test (ratio). We concluded that students’ residential preferences in the case study include indicators of dimensions, service and welfare, location, privacy, landscape, flexibility, and materials with a positive and direct impact. Statistical analysis showed that flexibility is the most important indicator and landscape is the least important indicator for students.
To understand the suburban living and its health effects in China, the housing development that is companied with suburbanization should be paid attention to, which is important to the creation of health-promoting environment. Although the quality of commodity housing has improved greatly after more than three decades’ development, little attention has been paid to the health implications of living in commodity housing estates, especially in suburban areas. Market-led suburbanization may have neglected the health of residents during urban expansion; moreover, the suburban lifestyle shaped by suburbanization and suburban housing planning and design may have various impacts on human health. Thus, it is necessary to know what are the empirical issues in housing development in terms of promoting health benefits of its residents, and what are the most popular health issues in urban residents of China.
The previous chapter established the IAD framework as an analytical tool for dissecting and examining the quality of CPR governance cases in empirical settings. This research applies the IAD framework to understand three Urban green spaces governance cases in Guangzhou, China. It is used in three ways.
Externalities cover the impacts that one party’s activities have on the welfare of others. They arise whenever the actions of one economic agent directly affect another economic agent outside the market mechanism. Externalities affect the quality of residential neighbourhoods either positively or negatively and have a profound effect on residents’ locational decisions. This study investigates significant location externalities that influence tenants’ locational decisions in Nairobi City, Kenya. Data were obtained from primary and secondary sources. A questionnaire survey on a sample of 347 residential tenants in Nairobi city was carried out and data was analysed using quantitative methods. Findings reveal that environmental, social, and economic factors are the most significant location externalities in the case study area. In particular, anthropogenic noise pollution, crime and insecurity, air pollution, development of shopping malls and urban traffic congestion play a dominant role in influencing tenants’ location decisions in Nairobi. The study recommends that the government should develop and implement zoning regulations that separate incompatible land uses. There should be strict enforcement of environmental standards and regulations to control pollution and protect natural resources. Implementing and enforcing strict emission standards for vehicles, industrial facilities, and power plants can significantly reduce the release of pollutants into the air. Shopping mall development should contribute to sustainable urban growth and enhance the overall wellbeing of residents. There is a need to address vehicular traffic in urban areas by investing in and expanding public transportation networks, implementing dedicated bus lanes and priority signalling, and developing safe and well-maintained pedestrian and cycling infrastructure, including sidewalks, bike lanes, and bike-sharing programs to encourage walking and cycling as viable commuting options. The establishment of a strong relationship between the police force and the community can help build trust, improve communication, and create a collaborative approach to addressing social and environmental hazards in residential neighbourhoods in Nairobi. The study contributes to the overall debate towards improving policy on residential real estate development, environmental protection, and social wellbeing within residential communities in urban areas in Kenya
Environmental valuation is the practice of assigning monetary values to nature and its associated functions. Because environmental “goods” and “services” are not normally traded on markets, economists have designed various methods, including stated and revealed preference, for arriving at monetary values that reflect what individuals are willing to pay. Environmental valuation is primarily undertaken with the aim of (i) incorporating environmental goods and services into cost–benefit analyses; (ii) internalizing environmental costs in market transactions; (iii) setting up markets in environmental services; and (iv) assessing compensation for environmental losses or for maintaining an ecosystem service. Human geographers have only recently engaged with environmental valuation. Some suggest that valuation practices should incorporate spatial elements such as scale and proximity, while others criticize the practice for its oversimplification of complex processes and ecologies and for its role in the commodification of nature.
Studying spatial‐temporal change in residential land prices (RLP) can help implement real estate regulations to promote the healthy development of the residential land market. This study applied the urban scaling law to explore the spatial‐temporal pattern of RLP from 2010 to 2019 in China. We found rapid growth in RLP across China from 2010 to 2019, with a growth rate of 179.12%. Among them, the Eastern Region had the highest RLP and growth rates. Furthermore, differences in RLP between large cities and small‐medium cities widened, indicating a trend of the Matthew effect in prefecture‐level cities. Moreover, the scale‐adjusted metropolitan indicator (SAMI) indicated urban agglomerations including Beijing‐Tianjin‐Hebei (BTH), Yangtze River Delta (YRD), Guangdong‐Fujian‐Zhejiang Coastal (GFZ), and Pearl River Delta (PRD) located in the Eastern Region had higher RLP than urban agglomerations with the same population size. In addition, the SAMI also highlighted disproportionately high RLP in some small‐medium cities compared to equivalent cities, warranting regulatory policy attention.
The skyrocketing housing prices in Chinese metropolises have generated broad concerns. Recent studies have moved beyond hedonic approaches considering housing attributes, location, and neighborhood by introducing urban structure and amenities as factors in housing prices. However, the role of amenities is often simplified, and the influence of urban structure is explored mainly using distance to CBD or concentric rings. This study more carefully examines the role of amenities in determining housing prices through a case study of Nanjing, China, adopting the self-organizing map and spatial regime modeling using remote sensing and point-of-interest data. We find that the regime of urban structure sways the hedonic factors' significance and positivity. Amenities play a double role in housing markets, as they act both as a determinant of housing price and an indicator of urban structure. Our study provides an improved framework of housing prices, which is applicable to studies of other cities. It also suggests that public policies should consider amenities more carefully to make cities more polycentric and livable.
The restrictions and requirements imposed by historic preservation regulations bring about many changes to the rights of property owners. They might impose additional costs, most notably by prohibiting the demolition of designated buildings and thus decreasing property-development opportunities. The objective of this study is to examine what happens following world heritage designations; specifically, if and how such designations impact the property values of historic buildings. Using the hedonic price method, we measure the value of the option to demolish and rebuild that is denied to owners of designated buildings. We also measure the value of preservation regulations, expressed in the prices of apartments in designated buildings. The study area is the “White City” of Tel Aviv, which UNESCO designated as a world heritage site. The findings suggest that the market price of a designated building is on average 12.5% lower than its theoretical value if the building was not subject to historic preservation regulations. Moreover, a premium of approximately 14% was found in the price of apartment units in designated buildings if the building underwent preservation. These findings could have a direct impact on public policies designed to promote the preservation of historical buildings in world heritage sites.
In this study, a life cycle assessment (LCA) method was used to examine the environmental impact of the rice
pulse production system (RPPS) in Cauvery Deltaic Region (CDR), Tamil Nadu, India. The LCA considered
the entire system required to produce 1 t of rice and 1 quintal of the pulse. The analysis included resource
utilization and greenhouse gases emissions (GHGEs) under two different rice cultivation methods followed by
a residual pulse crop. The result shows the significance of environmental impacts, followed by eutrophication,
water depletion, global warming, and energy depletion. As such, reducing nitrogen (N) fertilizer intensity and
increasing utilization efficiency are the key points to control the life cycle environmental impacts of rice and its
fallow crops, which would decrease resource consumption and emissions in the upstream production stages.
Streamlinig water management, particularly in the early growth stage, and reduction of rice field water
discharge are also significant measures with which to minimize nitrogen and phosphorus runoff losses and
control eutrophication and GHGEs so as to reduce life cycle environmental impacts of the rice-based cropping
system.
Keywords: Eutrophication, Global warming, Greenhouse gases, Life cycle assessment, Rice-pulse
The Royal Netherlands Meteorological Institute (KNMI) published the KNMI’06 Climate Scenarios in 2006. These scenarios give the possible states of the climate in The Netherlands for the next century. Projections of changes in precipitation were made for a time scale of 1 day. The urban drainage sector is, however, more interested in projections on shorter time scales. Specifically, time scales of 1 hour or less. The aim of this research is to provide projections of precipitation at these shorter time scales based on the available daily scenarios. This involves an analysis of climate variables and their relations to precipitation at different time scales. On the basis of this analysis, one can determine a numeric factor to translate daily projections into shorter time scale projections. Eventually, these synthetic data can be used as an input for an urban drainage model. With such a drainage model and synthetic data for design storms the effects of climate change on the systems’ performance can be assessed and the efficiency of adaptive measures can be investigated.
This study has been developed for the purpose of proposing a conceptual framework that identifies the potential factors that influence green building in the Yemeni architectural industry. The proposed framework for this study is established based on two main theories, which are the theory of the development of TQM and the TQM theory of Deming. In line with the previous studies that investigated this type of influence, this study recommended a conceptual framework that contains several factors, which are top management commitment, human resources, and customer focus, to find out their effect on green building in the Yemeni architectural industry. This study contributes to the body of green building development.
The spillover effect of seniors on housing prices has become a hot issue. Previous studies focused on the macro impact of aging on housing prices, paying less attention to the characteristics of seniors in micro‐community. This study attempts to fill this gap by assessing the spillover effect of the number, education levels, and occupations of senior neighbors on housing prices. Based on seniors’ characteristics in 3,565 neighborhood committees within the Sixth Ring Road in Beijing and 247,079 housing transactions from 2011 to 2019, this study utilized the hedonic price model and reached the following conclusions. (1) Housing prices decreased slightly with an increase in the total number of seniors in neighborhoods. (2) The spillover effects of some specific socioeconomic characteristics of seniors significantly improved housing prices. For every 10% increase in the proportion of well‐educated seniors or seniors who worked in government institutions, the housing price premium was 0.6% and 0.3%, respectively, with a comprehensive effect stronger than that of the total number of seniors. (3) The total number of seniors in neighborhoods had a nonlinear spillover effect on housing prices. (4) The characteristics of seniors have heterogeneous effects on housing prices based on location, housing price, and building age.
Against a global backdrop of growing concerns on housing crises, Chinese megacities have earned unwelcome distinction as among the world’s least affordable real estate. In the West, the alleged ‘over-restrictiveness’ of land-use planning has formed a focus of contestation on factors contributing to unduly expensive housing. In the Chinese context, however, it is unclear how spatial planning – arguably far more positively enabling of urban development and expansion – may have shaped housing market dynamics through its influence on city form. The concept of city form, as used here relates to three aspects, centricity, accessibility and development intensity (density). Focusing on Shanghai, the paper investigates city form impacts on residential property markets and explores the logic of plan-making that feeds into city form outcomes. We draw on a mixed-methods approach, including hedonic house price modelling, as well as qualitative interview and official document review. Analytical outcomes confirm the significant impact of city form on property values. However, planning rationales contributing to the outcome are problematic. Local plans are reinforcing Shanghai’s mono-centric structure and having little impact in counteracting the residential attractiveness of the inner city when compared with suburban new towns. Moreover, the zoning restrictions of suburban areas are potentially problematic owing to an arguable over-emphasis on the preservation of the natural environment. The failure to realise official poly-centricity aspirations and the enlarged gap in house prices between the inner city and suburbs can reinforce socio-spatial sifting and confine low-income people within disadvantaged locations.
This chapter examines metropolitan housing prices in Guangzhou, China, since the late 1980s utilizing a demand–supply theoretical framework combined with a macroeconomic model. The empirical results suggest that both environmental pollution discharges and housing marketization reform have decreased metropolitan housing prices. However, since reform has taken place, local government expenditures on education have had positive impacts on Guangzhou housing prices.
There is consensus regarding the fact that urban green areas contribute to the quality of life of their inhabitants. Therefore, efficient city management must assess whether the population has access to green areas and the areas’ quality in relation to, for example, vegetation, facilities or furnishings. Therefore, the objective is to establish environmental justice of urban parks in Tarragona (Spain) by developing a Park Quality Index (PQI) and the sociodemographic characteristics (level of studies, Human Development Index –HDI–, home sale and rental prices) of the population living within 300 m of a park. To prepare this, a GIS-integrated Multi-Criteria Evaluation (MCE) was produced. The results show that the green areas have low accessibility and availability and that most parks obtain an average-low PQI, with the best-valued aspect being the vegetation and the worst being the facilities. Regarding the degree of environmental justice, a causal relationship between the PQI and the indicators used emerges. The average value of the home sale prices is the one that shows the greatest correlation. These results can be used together with participatory procedures as a basis for identifying places with greater inequality, and for selecting the more effective actions that enable increasing environmental justice with respect to green areas.
In this paper, we propose a new approach to modeling a real estate price index in Morocco, based on the hedonic regression approach. The basic idea of this paper is to verify the importance of the characteristics of the real estate in the real estate price. Thus, based on data from the three major cities of the capital region of Morocco (RABAT Region), we estimated a hedonic model that takes into account spatial autocorrelation. The results obtained through this modeling generally confirm that the surface area and location of the real estate (land, house, villa and apartment) have a significant influence on the price of real estate.
Using a 1996 national survey of housing in China and a multilevel modelling technique, we examine housing tenure choice in transitional urban China where households have been granted limited freedom of choice in the housing market since the housing reforms of 1988. We é nd that both market mechanisms and institutional forces affect households' tenure choice in urban China. While some socioeconomic factors such as age, household size, household income and housing price have similar effects on tenure choice as in the West, others such as the number of workers and marital status have rather different effects. In addition, factors characterising institutional relationships among the state, work units and households, such as hukou, job rank and work unit rank, still play important roles in tenure choice.
The valuation of real estate is a central tenet for all businesses. Land and property are factors of production and, as with any other asset, the value of the land flows from the use to which it is put, and that in turn is dependent upon the demand (and supply) for the product that is produced. Valuation, in its simplest form, is the determination of the amount for which the property will transact on a particular date. However, there is a wide range of purposes for which valuations are required. These range from valuations for purchase and sale, transfer, tax assessment, expropriation, inheritance or estate settlement, investment and financing. The objective of the paper is to provide a brief overview of the methods used in real estate valuation. Valuation methods can be grouped as traditional and advanced. The traditional methods are regression models, comparable, cost, income, profit and contractor’s method. The advanced methods are ANNs, hedonic pricing method, spatial analysis methods, fuzzy logic and ARIMA models.
The implicit prices of housing characteristics concerning the physical structure, location, environment and the risk of construction quality in China are examined in this paper. The hedonic price model with uncertainty of construction quality is adopted. Data is collected from the Beijing residential market. The results indicate that consumers have different preferences for choosing residences in the different parts of Beijing and the marginal price of public facilities is negative. The most important preference suggests households in Beijing are willing to pay additional expenditures to protect themselves from low construction quality. An obvious political implication of this study is that further residential reform should be accompanied by improved construction quality under legal supervision and by encouraging real estate developers to allocate units according to the preferences of households.
This paper analyses the link between housing prices and urban green areas endowments using the hedonic technique as methodological approach. Together with the conventional variables used to explain housing prices, three environmental variables are considered: the existence of views of a park or a public garden, the distance from the dwelling to its nearest green area and the size of that open space. The sample is made up of 810 observations gathered from the city of Castellón (Spain). Results show housing size to be the most relevant variable on price. As far as the hedonic variables are concerned, there is an inverse relationship between the selling price of the dwelling and its distance from a green urban area.
Parks and open spaces enhance the quality of life in urban areas. Over the last 15 years, the city of Boston has sponsored the most expensive urban infrastructure project in history. This project relocates an elevated highway underground and creates urban parks, increasing the city's green space. The study estimates the economic benefits of proximity to parks in Boston, Massachusetts, based on hedonic pricing methods. Using Boston's land use and assessed property price data, it is determined that proximity to urban open space has positive impacts on property values, while proximity to highways has negative impacts on property prices. Based on this observation, it is expected that the spatial alteration will cause a significant increase in nearby property prices.
We will consider the crisis in housing supply which was the legacy of the Mao years, and which has occasioned radical measures in the housing field. The subsequent sections describe the revolution in the housing supply picture. Largely because of its limited impact in the face of extraordinary urban population growth new, more market-oriented policies began to appear in the early 1980s. The final section speculates on the future for housing policy, and for the basic provision of urban shelter in a period of development which promises enormous expansion of China's non-agricultural population. -from Author
Firstly, this paper selects 7 factors such as service facility, natural environment, traffic situation and location condition to evaluate Location Advantage Value of Residential Environment (LAVRE) in the urban and suburban areas of Beijing. Secondly, it constructs a LAVRE model to evaluate LAVRE of different parts of in Beijing and analyze its spatial characteristics. Thirdly, based on data of average prices of lots of commercial housings, this paper sets up GIS-based spatial distribution of prices to analyze spatial relationship between LAVRE and housing prices, and the relationship between LAVRE and residential location selecting behaviors. Lastly, it draws conclusions as follows: (1) Integrated LAVRE has a trend of decreasing from the center of the city to its periphery, and shows the feature of circle configuration. This trend is similar to the spatial change of the commercial housing prices, which shows a fact that the spatial distribution of commercial housing prices is directly influenced by the residential environment. (2) As a whole, the difference of commercial housing prices between northern and southern Beijing is similar to that of LAVRE. (3) Spatial preferences of residential location selecting are affected by the location advantage of residential environment. That is, northern Beijing where LAVRE is relatively high is the concentrated area of residential location selecting, and the rate of residents who choose southern Beijing, where LAVRE is low relatively, is lower than other parts of Beijing.
IntroductionWhat is a Hedonic Price Index?Repeat Sales ModelsThe Roots of Hedonic Price ModelsConceptual Issues in Hedonic ModellingSpecification IssuesHedonic Modelling: the Current PositionExamples of ApplicationsConcluding ThoughtsNotes
This paper, based on survey and statistical data, focuses on the development and distribution of commodity housing in Guangzhou and its surrounding areas in the 1990s. Firstly, the characteristics of commodity housing development were identified, e.g. the development capacity increased, development scale expanded, development types were diversified, but the problems like empty space and incomplete building were obvious. Then the spatial distribution and sprawl of commodity housing were analyzed. For the urban district, 1 149 pre-sale permits, accounting for 71. 6% of the total permits, were issued. The total built-up area was 28 072 × 103m2, accounting for 73. 9% of the total. The five commodity housing types were spatially recognized. They were (1) multi-story residential buildings oriented to domestic market; (2) high-density developed high-story residential and office buildings at large scale (built-up area above 84 × 103m2); (3) residential buildings with shops at small scale (built-up area less than 36 × 103m2); (4) villa oriented the overseas market at medium scale (built-up area between 84 × 103m2 and 36 × 103m2); and (5) low-density developed high-story office buildings with shops at medium scale. In the suburbs, 456 pre-sale permits, accounting for 28. 4% of the total permits, were issued. The total built-up area was 9 916 × 103m2, accounting for 26. 1% of the total. Three characteristics of the commodity housing distribution in the suburbs could be identified: (1) the commodity housing stretched northwards, eastwards and westwards along the external transport routes; (2) there were a lot of villa and multi-story commodity buildings as compared with the urban districts; and (3) the spatial pattern of function combination of buildings was diversified. Thirdly, the spatial development of commodity housing in the surrounding areas of the city was examined. Several characteristics could be identified: the development scale was rapid and large, the residential housing was dominant, the market was mainly oriented to local people of Guangzhou. The main factors for commodity housing development in the surrounding areas were the movement of Guangzhou people outwards due to the inner city redevelopment and comparative advantages of real estate development in the surrounding areas. Fourthly, the impacts of commodity housing development on urban spatial structure were analyzed. The development of commodity housing has expanded the built-up area and increased the height of the city, has promoted the spatial transformation of the urban functions and formation of new urban center, and has caused the formation of the satellite town crossing administrative divisions. But it has also caused some negative effects, such as the over-expansion of the built-up areas and urban environmental issues. Finally, three implications should be further considered. (1) vacant commodity housing will hinder further investment, production and consumption of the real estate; (2) the different commodity housing types mean that the factors influencing the social spatial structure of Guangzhou are changing; and (3) the spatial expansion of commodity housing reflects the changes of territorial related urbanization type.
A house is made up of many characteristics, all of which may affect its value. Hedonic regression analysis is typically used to estimate the marginal contribution of these individual characteristics. This study provides a review of recent studies that have used hedonic modeling to estimate house prices. The findings indicate that slanted versus flat roof, sprinkler system, garden bath, separate shower stall, double oven and gated community positively affect selling price while not having attic space, living in an earthquake zone, proximity to a hog farm, proximity to a landfill, proximity to high voltage lines, corporate-owned properties, percentage of Blacks or Hispanics in an area and properties that require flood insurance negatively affect selling price.
The two position solenoid operated cartridge valve is widely used in the applications, such as process control systems, pavers, agricultural machinery, where response and installed costs are more important than precise control through electronic position feedback. In recent years, the combination of multiple cartridge valves, so called ‘smart valve’ or ‘programmable valve’, which is able to break the mechanical linkage between the meter-in and meter-out orifices and enables high precision control as well as optimal usage of energy, is gaining engineering interests. But the control of such combination is far from trivial. It demands good knowledge of the valve dynamics and nonlinear flow properties. Unlike servo valve or proportional directional control valve, a mathematic model of solenoid operated cartridge valve, or even a thorough understanding of the dynamics and nonlinear performance, are not available. This paper presents an EASY 5 model for the two position solenoid operated cartridge valve. The model, which includes the solenoid force, spring force, damping force, flow force and nonlinear mass flow rate, can be used to analyze cartridge valve as well as simulate system or controller performance. It is also able to connect with Matlab for more complicated simulation.
It has been found that, at certain solar and sensor viewing geometries and for certain atmospheric conditions, some discontinuity lines appear in the retrieved atmospheric and ocean color products from measurements of Sea-viewing Wide Field-of-view Sensor (SeaWiFS). Such discontinuity lines, which do not often happen in the SeaWiFS products, appear along lines with constant scattering angles between the solar and sensor viewing directions. The discontinuity lines are clearly not real. They are artifacts from the SeaWiFS atmospheric corrections. The atmospheric correction, which is the key data processing in the ocean color remote sensing, removes more than 90% of the sensor-measured signals that are contributed from atmosphere and ocean surface effects in the visible wavelengths. In this paper, a brief description of the SeaWiFS atmospheric correction algorithm, in particular, the technique that is used in retrieving the aerosol models and aerosol radiance contributions in the visible wavelengths, is provided. Results from some specific simulations that explain the causes of the discontinuity lines in the derived products are presented. We show that these discontinuities are results of the imperfect atmospheric correction due to some effects of the aerosol models that are used for the SeaWiFS data processing. A simple modification to the current atmospheric correction algorithm to correct such effects is proposed and tested with SeaWiFS data.
Housing policies introduced in China in 1998 aim to end the distribution of housing by employers and set up new housing finance and market systems. The author examines policy development and practice in Beijing and evaluates the performance of the new housing finance mechanisms. Although the 1998 policies were a major step forward, the system created is very different from that in a market economy. Employers still have a major role to play in housing, although they will not be directly involved in construction and distribution. The new housing finance system shows some distinctive features as well.
This study uses a large longitudinal data set of housing and mobility information for the city of Tilburg, The Netherlands, to examine the relationships among households and the housing stock. The focus is on the nature of housing consumption by tenure and life-cycle characteristics of households and the impact of space requirements on residential mobility. Stepwise logit and discriminant models show that space considerations are central stimuli in the mobility process and that square meters per person is the most consistent predictor of the propensity to move. A specific study of the role of births indicates that such additions to families, especially for private renters and renters in the public sector, are a significant trigger in the mobility process.
China's urban housing marketisation hinges on a sensible ratio of housing price to rent. This research derives a rational level for such a ratio and examines its distortions under the Chinese system. It shows that the prevailing housing price to rent ratios are significantly higher than the rational level for both subsidised and free-market housing. Unique Chinese housing market equilibria are analysed and policy recommendations on commercialising Chinese urban housing are suggested.
Sustainable development policy is examined for the Belfast Metropolitan Area using a range of linked aggregate and disaggregate models. Energy trade-offs were modelled for both 'stationary' private dwellings and 'mobile' traffic-related energy sources. The research suggests that land-use policies, and in particular corridor-based densification linked to improved public transport, can achieve very significant reductions in mobile energy consumption and modest reductions in stationary energy use linked to residential lay-out design. This would apply to urban areas such as Belfast which exhibit the classic dispersal of population following deindustrialisation. To realise the potential energy savings, sustainable development policy needs to achieve at least the acquiescence of the consumer. Consumers will only support energy-efficient heating systems, improved public transport, densification policies and road charging, if there is some perceived element of financial compensation or other increase in utility for the individual.
Experiments with changing the system of urban housing in China have been implemented sporadically since the early 1980s, but the pace of change has picked up considerably since 1994. While numerous obstacles still exist, policy-makers appear determined to increase home ownership and move toward a market-oriented housing system. This paper reviews the progress made in the 1990s and the outlook for new housing policies being proposed and implemented in China today.
The access of newly formed households to their first independent dwelling is a useful indicator of the provision of housing for households with a weak position in the housing market. This is particularly the case in a densely populated urban region, where the housing market is tight. However, starters in the housing market do not form a homogeneous group. They differ by age, household composition, and socio‐economic status. Particularly when there are two wage earners in the household, access may be gained to more expensive dwellings. This article examines the housing situation of starters in five types of residential environment in the Randstad Holland: metropolitan areas, strongly, moderately, and weakly urbanised areas, and growth areas. The metropolitan areas contain many small and inexpensive dwellings and thus accommodate many non‐working (often student) starter households. In the least urbanised municipalities dual‐earner married couples are strongly represented among starters. All residential environments play an important part in the housing of starters, who usually locate in the residential environment where they had already been living. Particularly in the metropolitan and (strongly) urbanised areas so‐called substitute dwellings, such as rented rooms, caravans and houseboats, are important in accommodating newly formed households. They help ease the pressure on the stock of inexpensive housing. Starters living in suburban areas tended to move directly from the parental home into their first independent dwelling.
All the usual methods for valuing non-market benefits and costs may be applied to the aesthetic values of urban trees. However, evaluation has most usually been undertaken by one of two apparently dissimilar methods. The expert approach uses a mixture of measurement and judgement. Different versions of the approach have different quantitative input, produce divergent results, and theoretical justifications of their cash value are lacking. The hedonic approach attempts to derive cash values from house prices. Here too problems of quantification arise, in choice of appropriate variables, in the form of relationships and in interaction of variables. An approach using the human eye's ability to synthesise disparate variables may overcome these problems, but there remain problems of collinearity between environmental and demographic variables. At least explicit recognition of judgement in the process allows open discussion of these problems.
A survey of the sales of 844 single family residential properties in Athens, Georgia, U.S.A., indicated that landscaping with trees was associated with 3.5%–4.5% increase in sales prices. During the 1978–1980 study period, the average house sold for about 1475 and 2869 and 100 000 (1978 dollars) in the city's property tax revenues.
This paper examines housing privatization and the characteristics of the Chinese housing model under state socialism. Housing reform has changed the structure of housing provision and fostered the transition of the housing model from an administrative system to a market-oriented system. However, it has not changed the distribution of power and privileges and particularly the power of work units. The continuing role of work units as mediators in the housing market cannot be justified in a market-led economy. Work units operate aimed at maintaining the social structure rather than according to the principles of a market-oriented system.
The purpose of this chapter is to survey recent research on housing markets and policy in what used to be called the “second” and “third” worlds. We adopt the labels “transition” economies to refer to countries as disparate as Russia and Vietnam, and “developing” to refer to countries as disparate as Korea and Singapore (arguably now developed) and countries like Mozambique and Laos. It is therefore quite interesting that the bulk of the research surveyed finds that housing market behavior is remarkably similar from place to place. Institutions and constraints, particularly the amount of income available for housing and other goods and services certainly do vary dramatically from place to place. And the stakes of how well housing markets work vary from place to place. But these differences in institutions and constraints do not obscure regularities in behavior. The first major section, on housing markets (Section 2), examines property rights, supply, demand and tenure. Section 3 presents research on the related markets for land, finance and infrastructure. Housing policy is covered in Section 4, including housing subsidy systems, privatization, taxation and regulation. Section 5 concludes with a discussion of current issues and research.
Contemporary provision of open spaces within cities rests largely on professional assumptions about its significance in the lives of residents. This paper presents results from the Greenwich Open Space Project which used qualitative research with four, in-depth discussion groups to determine the design of a questionnaire survey of households in the borough. The research shows that the most highly valued open spaces are those which enhance the positive qualities of urban life : variety of opportunities and physical settings; sociability and cultural diversity. The findings lend some support to the approach of the urban conservation movement but present a fundamental challenge to the open-space hierarchy embodied in the Greater London Development Plan. The Project identifies a great need for diversity of both natural settings and social facilities within local areas and highlights the potential of urban green space to improve the quality of life of all citizens.
sing a sample of recently completed 'commodity housing' in Guangzhou, i.e. dwellings that were built by development companies and sold or rented at full market price in the primary market, a multi-level logit analysis of the housing allocation process and of tenure decisions was conducted. The results of the statistical analysis are generally in line with the nature of housing market segmentation and the forces governing housing allocation and consumption in China in general and Guangzhou in particular. Residents in open market housing generally have higher incomes and hold higher-status jobs than those in the subsidised sectors. However, at the same time, the getihu or petty traders, who rank low in terms of occupational status, are also likely to be occupants of open market housing. Household characteristics also show systematic variations between occupants of different types of subsidised housing. In particular, residents of resettlement housing tend to occupy lower-status jobs. In terms of tenure choice, the results for the open market housing residents are to some extent consistent with studies conducted in market economies. In the subsidised sectors, the factors underlying homeownership are quite different between housing types. Occupation, for example, has significant effects on homeownership in both work unit housing and housing bureau housing, but the nature of the influence is quite different in each case. In the case of resettlement housing, none of the household attributes, with the exception of the head's year of service in present employment organisation, was found to be significant.
The role of the state in housing has been the subject of controversial debate recently in China. More and more decision-makers consider that the supply of housing should be left to market forces of demand and supply. Various new policies have been introduced from as early as 1979, designed to commercialise and reform the public-sector-dominated housing system. This paper provides a review of housing reforms and a systematic account of the key features of the commercialisation process. It focuses principally on the attempts to privatise public-sector housing in urban areas in the context of the major characteristics and problems of the urban housing system, the development of reform policies and legislation and current reform practice.
Discusses housing reform and its impact on the governance of housing in China. The roles of the state and work units have been shifted from providers to enablers in the market of housing supply after the introduction of privatisation and the market mechanism. However, the role of work units in housing distribution remains almost intact. The scope of work units’ influence is more extensive than before reform. The involvement of work units as mediators in the housing market affects the performance of the market and contributes to the fluctuations and uncertainty of the market. In order to tackle the new problems arising from reform, the role of work units needs to be redefined.
China’s property industry in the past few years has made great progress and it is now vital to improve its management processes. Explains the traditional system of management for urban residential districts (urban living quarters) in China and the professional management pattern now becoming popular in the southern part of China. Comparing these two different management patterns, claims that the professional management pattern will sooner or later be adopted and accepted for all urban residential districts throughout China.
This paper presents the results of an attitudinal survey of residential and commercial building users from three Chinese cities – Hong Kong, Shanghai and Taipei. The results have been obtained from a much larger survey, primarily involving the living and working standards in the three cities. Apart from the descriptive statistics showing the preferences of the user, inferential statistics also showed significant differences among the attitudes of citizens living in the three cities. The results could give insights to designers and developers on the improvement of building standards.
China's economic reform has bred a rapidly expanding real estate sector, in which residential property management is an indispensable part. This article seeks to explore the administrative setup, enterprise structure, management regulations and operational focus of residential property management in China by using a case study (the Enjili Residential District) in Beijing. Data were collected in three field reconnaissance trips, during which interviews were conducted with government officials, management staff and the residents. It is found that property management in China is a new concept to both residents and management staff. The establishment and operation of market-orientated management firms is a significant progress from the traditional management approach under the planned economy. Residential property management firms fit into the existing administrative system by having a dual function to serve the interests of both government and the independent firm. It remains interesting to see how property management firms can work with government offices to satisfy the needs of both parties.
This paper examines the ability of the hedonic price method to estimate the premium offered by particular housing attributes or environmental characteristics in an urban setting. Problems of non‐separability in variables within an empirical model, suggest that this methodology is not always suitable for the estimation of specific housing attributes, and an alternative approach to this problem is suggested.
This paper applies two major explanations in gated community studies, namely the club realm of consumption and the discourse of fear, to examine the changing forms of urban ‘gated communities’, i.e. the transition from work-unit compounds to gated commodity housing enclaves, in urban China. While the gate has existed in China for a long time as a physical form, it has now been rediscovered as an instrument for the partitioning of derelict socialist landscapes produced by ‘economising urbanisation’ and a post-socialist imagined ‘good life’. The study highlights that the function of gating is dependent upon social and economic contexts: under socialism, gating reinforces political control and collective consumption organised by the state; in the post-reform era, the gate demarcates emerging consumer clubs in response to the retreat of the state from the provision of public goods. While the discourse of fear seems less applicable to the Chinese city, urban fragmentation is paving the way to a new urban experience of insecurity, which has begun to appear in the discourse of ‘community building’ in urban China.
This study shows that in the suburban rings surrounding Cleveland, Ohio average resale prices are sustained through capitalization of quality–price preferences for housing and school quality. Average housing resale prices are highest where local fiscal capacity is built upon a strong residential–nonresidential property tax base and where the total valuation resulting is capitalized into housing stock prices. High total valuation per pupil enables school districts to maintain satisfactory per pupil expenditures that contribute to the sustainability of resale prices. Nonetheless, regional restructuring, population growth, access to superior housing, open space and other amenities in the peripheral, inner– and outer–edge suburban rings are redirecting investment away from the contiguous ring suburbs where the levying of high effective millages is causing total valuations per pupil to fall. Diminishing school district quality and shrinking tax bases in the contiguous suburbs are harbingers of suburban distress and housing disinvestment.