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Real Estate Economics, Management and Investments

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (30 April 2019) | Viewed by 191630

Special Issue Editors


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Guest Editor
Department of Industrial Engineering, Univeristy of Naples “Federico II”, Piazzale Vincenzo Tecchio 80, 80125 Napoli, Italy
Interests: econometric models; mass appraisal; real estate market; risk management; urban and real estate economics; real estate investments; building management; economic valuation of real estate investment projects; environmental economics; transport economics; sustainability; knowledge management; corporate valuation
Special Issues, Collections and Topics in MDPI journals

E-Mail Website
Guest Editor
Department of Industrial Engineering, Univeristy of Naples “Federico II”, Piazzale Vincenzo Tecchio 80, 80125 Napoli, Italy
Interests: econometric models; mass appraisal; real estate market; risk management; urban and real estate economics; real estate investments; building management; economic valuation of real estate investment projects; environmental economics; transport economics; sustainability; knowledge management; corporate valuation
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The current difficult situation of production and consumption activities has also determined a weakness of real estate economy. The main problems are the subordination of public decision-making, which is subjected to pressure from big companies, inefficient appraisal procedures, excessive use to financial leverage in investment projects, the atypical nature of markets, income positions in urban transformations, and the financialization of real estate markets with widespread negative effects.

A delicate role in these complex problems is assigned to real estate appraisal activities, called to make value judgments on real estate goods and investment projects, of which prices are often formed in atypical real estate markets.

Recently, theoretical and empirical research on real estate has seen a great expansion, especially using the paradigms and methodologies of finance and economics.

The Special Issue is dedicated, but not only limited, to developing and disseminating knowledge related to most recent real estate evaluation methodologies applied in the fields of architecture and civil, building, and environmental and territorial engineering. Suitable works include studies on econometric models, building management, building costs, risk management and real estate appraisal, mass appraisal methods applied to real estate properties, urban and land economics, transport economics, the application of economics and financial techniques to real estate markets, the economic valuation of real estate investment projects, and the economic effects of building transformations or projects on the environment.

Prof.  Pierfrancesco De Paola
Prof. Vincenzo Del Giudice
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • building management
  • building costs
  • mass appraisal methods
  • econometric models
  • real estate risk management
  • economic valuation of real estate investment projects
  • real estate market
  • property
  • social housing
  • urban economics
  • land
  • transport economics
  • real estate economics
  • real estate finance
  • building transformations and economic effects on environment
  • projects and economic effects on environment

Published Papers (30 papers)

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18 pages, 544 KiB  
Article
Understanding the Intention and Behavior of Renting Houses among the Young Generation: Evidence from Jinan, China
by Shengqin Zheng, Ye Cheng and Yingjie Ju
Sustainability 2019, 11(6), 1507; https://doi.org/10.3390/su11061507 - 13 Mar 2019
Cited by 26 | Viewed by 5249
Abstract
In the last decade, the rapid growth of China’s economy and population has generated a large demand for housing. Increasingly high prices have become the main obstacle for homeownership, especially for the young generation. In this study, we investigate the determinants of rental [...] Read more.
In the last decade, the rapid growth of China’s economy and population has generated a large demand for housing. Increasingly high prices have become the main obstacle for homeownership, especially for the young generation. In this study, we investigate the determinants of rental housing among the young generation in Chinese cities. A theoretical model and hypotheses were proposed by extending the theory of planned behavior (TPB). An empirical analysis was conducted via the structural equation model validation to reveal the following conclusions. (1) Attitude towards behavior (perceived usefulness and perceived usability) are the most important factors influencing renting behavior. (2) Mandatory policies and regulatory pressures promote renting behavior. (3) The government’s economic incentives have a significant impact on perceptual behavior control and indirectly affect behavioral intentions through perceptual behavior control. Based on the above conclusions, this study proposed recommendations for the government and businesses. This study contributed to existing theory and practice by providing useful insights into the influences on the young generation’s renting intentions. Furthermore, these findings provide the government with implications for facilitating the sustainability of the housing market. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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22 pages, 287 KiB  
Article
A Methodology for Determining the Profitability Index of Real Estate Initiatives Involving Public–Private Partnerships. A Case Study: The Integrated Intervention Programs in Rome
by Fabrizio Battisti and Orazio Campo
Sustainability 2019, 11(5), 1371; https://doi.org/10.3390/su11051371 - 5 Mar 2019
Cited by 26 | Viewed by 5053
Abstract
In the European Union, real estate initiatives involving public–private partnerships (PPPs) are characterized by the payment of a charge, which is generally used for public purposes (and works). In Italy, since the 1990s, PPPs have also been used to start negotiated initiatives giving [...] Read more.
In the European Union, real estate initiatives involving public–private partnerships (PPPs) are characterized by the payment of a charge, which is generally used for public purposes (and works). In Italy, since the 1990s, PPPs have also been used to start negotiated initiatives giving the possibility of modifying town planning forecasts. Such initiatives are aimed at increasing the value of private properties and, through the charge, financing public works. This charge was regulated only in 2014 with the change of Article 16, paragraph 4, point d-ter of the Presidential Decree 380/2001 (Consolidated building law) and was named the “extraordinary urbanization contribution” (or simply the “extraordinary contribution”). The extraordinary contribution makes it possible to finance public works with private monetary resources. The amount of the extraordinary contribution is not less than 50% of the capital gain that is produced by real estate initiatives concerning modifications to town planning forecasts. A crucial issue of the this kind of PPPs has always been the appraisal of the capital gain of real estate initiatives due to changes in town planning forecasts. The factors to be considered while evaluating the extraordinary contribution, the appraisal tools and procedures to be used in assessing the capital gain are not indicated at regulatory level. However, an over 20 years’ practice has been consolidating the use of an analytical procedure for the appraisal of the transformation value to be used in evaluating the extraordinary contribution. In this procedure, the evaluation of the profitability index of real estate initiatives appears critical: in fact, the capital gain depends upon this element. At the same time, this topic is substantially neglected by the scientific debate. In this paper, a methodology has been defined, which is structured on the Build-Up Method and allows the profitability index (or rate of return) of a real estate initiative to be evaluated. Through a test, the developed methodology has been used in a case study: the appraisal of the extraordinary contribution in three integrated intervention programs in the city of Rome. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
21 pages, 3715 KiB  
Article
Efficiency versus Fairness in the Management of Public Housing Assets in Palermo (Italy)
by Grazia Napoli, Salvatore Giuffrida and Maria Rosa Trovato
Sustainability 2019, 11(4), 1199; https://doi.org/10.3390/su11041199 - 24 Feb 2019
Cited by 23 | Viewed by 3620
Abstract
Public housing policy has been proposing plans of public housing (PH) stock alienation or, as an alternative, property enhancement plans, since administrative and financial commitments have become too heavy for municipalities. This paper deals with one of the current public housing management policy [...] Read more.
Public housing policy has been proposing plans of public housing (PH) stock alienation or, as an alternative, property enhancement plans, since administrative and financial commitments have become too heavy for municipalities. This paper deals with one of the current public housing management policy initiatives, undertaken by the Municipality of Palermo (Italy), which aimed at transferring a significant part of the public housing asset to the current tenants, according to some terms and conditions, and applying a politically fixed price. This policy is described in general, focusing on the amount of the assets involved, reporting the terms and conditions for transferring them at an affordable price, and analysing their concentration/distribution in the urban areas. The main aim of the paper is to provide a valuation pattern for defining the trade-off between the efficiency and fairness of such a tool, recognising the conditions for the consistency between the transfer price established by municipality, the merit of the public housing asset, and the market value. A detailed study on two representative neighbourhoods was carried out in order to measure the value of solidarity of this policy and to propose some corrective rules. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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33 pages, 6709 KiB  
Article
Determinants of the Price of Housing in the Province of Alicante (Spain): Analysis Using Quantile Regression
by Raul-Tomas Mora-Garcia, Maria-Francisca Cespedes-Lopez, V. Raul Perez-Sanchez, Pablo Marti and Juan-Carlos Perez-Sanchez
Sustainability 2019, 11(2), 437; https://doi.org/10.3390/su11020437 - 15 Jan 2019
Cited by 19 | Viewed by 5758
Abstract
After almost a decade of crisis, the housing market in Spain shows significant signs of recovery, with increases in both the average price and the number of sales transactions. Housing is the main asset for the majority of households, and it also has [...] Read more.
After almost a decade of crisis, the housing market in Spain shows significant signs of recovery, with increases in both the average price and the number of sales transactions. Housing is the main asset for the majority of households, and it also has the most resources devoted to it, thus, when it comes to buying a residence, people do not only look at the asset’s intrinsic characteristics, but also consider other particularities such as the neighbourhood, accessibility to services, availability of public transport or adequate funding. The study aimed to analyse and quantify the relationship that exists between the asking price of second-hand housing on the market in Alicante and the attributes that characterise them. This was done using a multivariate analysis to estimate a hedonic pricing model by ordinary least squares and a quantile regression to analyse the impact of the characteristics in different price ranges. The results show the segmentation of the prices in the Alicante market, with higher prices in the northern coastal area over the southern and inland comarcas. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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18 pages, 1296 KiB  
Article
Investigating the Impact of Airport Noise and Land Use Restrictions on House Prices: Evidence from Selected Regional Airports in Poland
by Jacek Batóg, Iwona Foryś, Radosław Gaca, Michał Głuszak and Jan Konowalczuk
Sustainability 2019, 11(2), 412; https://doi.org/10.3390/su11020412 - 15 Jan 2019
Cited by 33 | Viewed by 5071
Abstract
In this paper, we investigate the influence of airport operation on property prices. In this research, we apply spatial hedonic regression and a difference-in-differences approach to address the introduction of new land use restrictions on property prices. We use data on housing transactions [...] Read more.
In this paper, we investigate the influence of airport operation on property prices. In this research, we apply spatial hedonic regression and a difference-in-differences approach to address the introduction of new land use restrictions on property prices. We use data on housing transactions from two housing submarkets around regional airports in Poland. The results suggest that the introduction of land use restrictions impacts property prices. In general, as expected, more rigid restrictions translate into higher discounts in property prices. This research contributes to the limited knowledge on the impact of the introduction of land use restrictions on property prices, as most previous papers have focused solely on the impact of noise. These findings must be treated with caution, as some estimates were not statistically significant, mainly due to limited sample size. The research has important policy implications. Growing airports in Poland face tensions between economic and environmental sustainability. Currently, airports in Poland are obliged to limit their environmental impact by creating limited use areas related to the aircraft related noise while being responsible for property value loss related to these restrictions. As a consequence, most regional airports face significant compensations to property owners. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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13 pages, 830 KiB  
Article
An Economic Analysis Algorithm for Urban Forestry Projects
by Antonio Nesticò, Maria Rosaria Guarini, Pierluigi Morano and Francesco Sica
Sustainability 2019, 11(2), 314; https://doi.org/10.3390/su11020314 - 9 Jan 2019
Cited by 31 | Viewed by 3880
Abstract
The second half of the 20th century was characterized by rapid growth of the urban population and lack of attention to environmental quality in the urbanizes territories. Thus, the development of many cities during that period took place through policies which, over time, [...] Read more.
The second half of the 20th century was characterized by rapid growth of the urban population and lack of attention to environmental quality in the urbanizes territories. Thus, the development of many cities during that period took place through policies which, over time, resulted in a disaggregated landscape, both in morphological and functional terms. In some cases, these policies have caused the creation of land portions without a specific characterization, and the generation of urban voids that negatively affect the city’s development. To solve this problem, the public administration sectors of many countries are looking for new intervention strategies that are feasible from a social and economic point of view which are able to guarantee sustainable development. From this perspective, the execution of urban regeneration initiatives, including forestation, allows for the improvement of both environmental quality and citizens’ well-being, and promotes economic development. Considering the multiple effects that these initiatives can generate and the limited availability of public and private resources, it is appropriate to use multi-criteria decision support tools through which it is possible to evaluate the interventions’ complexity and best identify the city areas that lend themselves to be recovered and improved through the forestation. The aim of this work is to develop a support tool for public administrations aimed at identifying the optimal forestry projects’ location according to criteria that not only refer to financial type, but also their social, cultural, and environmental nature. Using Discrete Linear Programming algorithms, the model has been tested through a theoretical case study and reveals the advantages and limitations of the model, as well as future research prospects. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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17 pages, 1341 KiB  
Article
Affordability Assessment of Energy-Efficient Building Construction in Italy
by Benedetto Manganelli, Pierluigi Morano, Francesco Tajani and Francesca Salvo
Sustainability 2019, 11(1), 249; https://doi.org/10.3390/su11010249 - 7 Jan 2019
Cited by 33 | Viewed by 4618
Abstract
This research tries to investigate, in the current condition of the Italian real estate market, the economic advantage of investing in energy retrofitting of existing buildings or in expenditure aimed at obtaining higher energy performances in the construction phase of new buildings. A [...] Read more.
This research tries to investigate, in the current condition of the Italian real estate market, the economic advantage of investing in energy retrofitting of existing buildings or in expenditure aimed at obtaining higher energy performances in the construction phase of new buildings. A cost-benefit analysis is developed referring to the construction industry entrepreneur. Firstly, the increase in value due to a different measurement of the energy performance of new buildings or newly redeveloped residential buildings is achieved through an innovative statistical approach. Energy performance is measured by taking as a reference the category of energy certification, as required by European legislation. In the estimate of the contribution, the measurement of energy performance, expressed on an ordinal scale, is treated as a categorical variable in the implementation of an iterative regression model, called the alternating least squares model. Afterwards, this contribution is compared to the cost of sustainable building, trying to define a percentage increase in cost compared to a minimum condition according to different and increasing levels of energy performance. In the developed case studies, the comparison between likely benefits and investment spending showed that the entrepreneur would have no convenience at an expense for energy retrofitting while obtaining a positive balance in the construction phase of new buildings. The financial advantage grows if the investment is aimed at achieving the best energy performance and in areas where the price level of the real estate market is lower. The finding can be used as a guide for construction industry investors to make decisions in energy-efficient residential buildings production or transformation. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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14 pages, 1482 KiB  
Article
Does Sustainability Affect Real Estate Market Values? Empirical Evidence from the Office Buildings Market in Milan (Italy)
by Alessia Mangialardo, Ezio Micelli and Federica Saccani
Sustainability 2019, 11(1), 12; https://doi.org/10.3390/su11010012 - 20 Dec 2018
Cited by 41 | Viewed by 8521
Abstract
The construction industry is the world’s largest consumer of energy and producer of greenhouse gases. For this reason, there is a broad debate on how to make the built environment more sustainable. Although the positive externalities of energy-efficient retrofitting and new construction are [...] Read more.
The construction industry is the world’s largest consumer of energy and producer of greenhouse gases. For this reason, there is a broad debate on how to make the built environment more sustainable. Although the positive externalities of energy-efficient retrofitting and new construction are known, the economic effects that green building has on the real estate sector in Italy are less evident. The aim of this paper is to analyze the Italian real estate market to investigate if, and to what extent, demand appreciates the supply of green real estate assets. The research focused on the analysis of 55 development projects of office buildings (with and without environmental certification) located in Milan, at present the most dynamic and flourishing real estate market in Italy. Through these case studies the authors investigated the premium price that is generated in certified real estate development projects. The results highlight a premium price, especially for high levels of sustainability. Similarly, the rate of absorption of certified assets reflects a preference for green properties, which are absorbed by the real estate market in less than half of the time foreseen for real estate without an environmental certification. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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22 pages, 3586 KiB  
Article
The ALARP Principle in the Cost-Benefit Analysis for the Acceptability of Investment Risk
by Antonio Nesticò, Shuquan He, Gianluigi De Mare, Renato Benintendi and Gabriella Maselli
Sustainability 2018, 10(12), 4668; https://doi.org/10.3390/su10124668 - 7 Dec 2018
Cited by 42 | Viewed by 6873
Abstract
The process of allocating financial resources is extremely complex—both because the selection of investments depends on multiple, and interrelated, variables, and constraints that limit the eligibility domain of the solutions, and because the feasibility of projects is influenced by risk factors. In this [...] Read more.
The process of allocating financial resources is extremely complex—both because the selection of investments depends on multiple, and interrelated, variables, and constraints that limit the eligibility domain of the solutions, and because the feasibility of projects is influenced by risk factors. In this sense, it is essential to develop economic evaluations on a probabilistic basis. Nevertheless, for the civil engineering sector, the literature emphasizes the centrality of risk management, in order to establish interventions for risk mitigation. On the other hand, few methodologies are available to systematically compare ante and post mitigation design risk, along with the verification of the economic convenience of these actions. The aim of the paper is to demonstrate how these limits can be at least partially overcome by integrating, in the traditional Cost-Benefit Analysis schemes, the As Low as Reasonably Practicable (ALARP) logic. According to it, the risk is tolerable only if it is impossible to reduce it further or if the costs to mitigate it are disproportionate to the benefits obtainable. The research outlines the phases of an innovative protocol for managing investment risks. On the basis of a case study dealing with a project for the recovery and transformation of an ancient medieval village into a widespread-hotel, the novelty of the model consists of the characterization of acceptability and tolerability thresholds of the investment risk, as well as its ability to guarantee the triangular balance between risks, costs and benefits deriving from mitigation options. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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18 pages, 1556 KiB  
Article
Sustainable Value of Investment in Real Estate: Real Options Approach
by Marek Durica, Danuse Guttenova, Ludovit Pinda and Lucia Svabova
Sustainability 2018, 10(12), 4665; https://doi.org/10.3390/su10124665 - 7 Dec 2018
Cited by 11 | Viewed by 4418
Abstract
The issue of application of real option valuation approach in the valuation of investment project is presented in the article in a way in which the flexibility of the project could be included in the process of its valuation. The authors apply the [...] Read more.
The issue of application of real option valuation approach in the valuation of investment project is presented in the article in a way in which the flexibility of the project could be included in the process of its valuation. The authors apply the valuation approach in case of a specific investment project in the real estate in the capital city of the Czech Republic—Prague, using the option to expand, to contract, and to abandon the project. The main aim of this case study is to present a practical application of the investment valuation and to construct an option pricing model for real estate investment which considers and integrates as many aspects of the investment and market environment as possible to describe the best situation of the real estate market and its development. The valuation of the investment is carried out using a universally applicable numerical method of binomial trees. The results obtained are subjected to the sensitivity analysis with respect to the discount rate, value of the most influential parameter of the volatility and the input option parameters. The results of the valuation of the project obtained using the real option approach are important mainly for the management of the company in the process of quantification of the present value of future investments. Implementation of managerial interventions enables for optimizing the value of the project not only in case of favourable development of the real estate market, but particularly in case of unfavourable development. Therefore, they are important in order to protect an investor from potential high losses. Finally, the valuation of these interventions increases the present value of the project, contributing to the decision of the corporate management regarding its implementation. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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22 pages, 1751 KiB  
Article
The Evaluation of Green Investments in Urban Areas: A Proposal of an eco-social-green Model of the City
by Luisa Sturiale and Alessandro Scuderi
Sustainability 2018, 10(12), 4541; https://doi.org/10.3390/su10124541 - 2 Dec 2018
Cited by 32 | Viewed by 4956
Abstract
The new and more conscious sensibility towards the environmental sphere supports the idea of “green city”, promotes initiatives of structural integration of the green with the built environment and involves a considerable number of disciplines in a cultural and social debate. The literature [...] Read more.
The new and more conscious sensibility towards the environmental sphere supports the idea of “green city”, promotes initiatives of structural integration of the green with the built environment and involves a considerable number of disciplines in a cultural and social debate. The literature reports different experiences of collaborative governance, between administrations and citizens, which tend to enhance the interaction between the different social actors involved in the investments of Green Infrastructures, to share objectives and management methods and to assess the extent of ecosystem services. The objective of this article is to propose a methodological approach to assessing green investments in the urban area, which is able to internalize the social perception of citizens regarding this important component for the urban landscape, with a view to guiding the city’s government towards a new urban eco-social-green planning and evaluation model. It presents a concise framework of the scientific debate on climate change and on the effects of urban planning issues; some relevant experiences of Green Infrastructures; and the proposed methodology, applied to the reality of the “urban green system” of Catania, based on an integrated approach between participatory planning and the method NAIADE (Novel Approach to Imprecise Assessment and Decision Environments). Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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18 pages, 1070 KiB  
Article
Impact of Property Tax on Housing-Market Disequilibrium in Different Regions: Evidence from Taiwan for the period 1982–2016
by Sheng-Hau Lin, Jia-Hsun Li, Jing-Chzi Hsieh, Xianjin Huang and Jia-Tsong Chen
Sustainability 2018, 10(11), 4318; https://doi.org/10.3390/su10114318 - 21 Nov 2018
Cited by 5 | Viewed by 3918
Abstract
Although Taiwan has had a unique property tax system for a long time, oversupply and increasing prices have persisted in the regional market during recent decades. In order to shed light on this problem, this study investigated the impact of property taxation on [...] Read more.
Although Taiwan has had a unique property tax system for a long time, oversupply and increasing prices have persisted in the regional market during recent decades. In order to shed light on this problem, this study investigated the impact of property taxation on housing markets in different regions from a disequilibrium viewpoint based on the stock-flow model. The panel data of 20 counties or cities in Taiwan for the period from 1982 to 2016 was examined. The empirical findings verified that housing price was the most important factor for influencing the long-run housing supply and demand in regions both with and without oversupply. The low interest rate policy was an important factor driving the long-run housing demand, but only in over-supply regions. The current property tax system cannot impact the long-run housing demand, only the short-run demand in both regions. Moreover, the property tax cannot effectively disturb the supply behavior in the long-run in both regions. This study also confirmed that housing-market disequilibrium existed in regions both with and without oversupply, making up the gap. The property tax’s impact on the adjustment speed to long-run equilibrium in over-supply regions was weaker than under-supply regions. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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15 pages, 275 KiB  
Article
Impact of Public Management Approaches on Municipal Real Estate Management in Poland and The Netherlands
by Bartłomiej Marona and Annette Van den Beemt-Tjeerdsma
Sustainability 2018, 10(11), 4291; https://doi.org/10.3390/su10114291 - 20 Nov 2018
Cited by 18 | Viewed by 4159
Abstract
Since the economic crisis (2008) municipalities became more aware of their real estate portfolio. Their first reaction to the sense of urgency to pay more attention to this extensive property was to improve their real estate administration. Now, ten years later, municipalities are [...] Read more.
Since the economic crisis (2008) municipalities became more aware of their real estate portfolio. Their first reaction to the sense of urgency to pay more attention to this extensive property was to improve their real estate administration. Now, ten years later, municipalities are ready to focus more on the professionalization of the management of their real estate. The purpose of this study is to present the role of individual concepts of public management in Polish and Dutch municipal (public) real estate management. The paper is based on the results on survey research based on public real estate management theory and two public management approaches: new public management and good governance. First, preliminary research was carried out in a Polish metropolitan area after which all Polish metropolitan areas where questioned about their real estate management issues. This questionnaire was also sent to all Dutch municipalities one year later. The Hellwig’s taxonomic method was performed on both separately to assess the level of implementation of good governance and new public management principles in real estate management practices. The research shows that new public management standards are applied at a similar level in municipal real estate management in Poland and The Netherlands. Good governance standards are used a little more broadly in Poland than in The Netherlands. The research shows that in Poland and The Netherlands the concepts of new public management and good governance are not applied as a whole but are deployed as a collection of instruments. Most municipalities choose some of these instruments to apply to their municipal real estate (MREM). Both in Poland and in The Netherlands there are differences noticed in the application of new public management and good governance principles depending on the type of municipality. Besides this originality and scientific relevance, municipalities of both countries could benefit from this comparison by learning from best practices. Practical recommendations and suggestions for public administration concern: (i) the necessity to develop municipal real estate management plans; (ii) increase regularity of asset valuation and (iii) assessment of real estate management performance; (iv) greater transparency in real estate management; and (v) increasing the participation of citizens in the process of managing real estate. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
13 pages, 301 KiB  
Article
Archaeological Site Conservation and Enhancement: An Economic Evaluation Model for the Selection of Investment Projects
by Giacomo Di Ruocco and Antonio Nesticò
Sustainability 2018, 10(11), 3907; https://doi.org/10.3390/su10113907 - 27 Oct 2018
Cited by 8 | Viewed by 2858
Abstract
For sustainable development of the territory, public administrations must guarantee the efficient allocation of available resources. This is also important for the conservation and enhancement of archaeological sites, able to generate multiple effects—not only strictly cultural, but also social, environmental, and financial—in their [...] Read more.
For sustainable development of the territory, public administrations must guarantee the efficient allocation of available resources. This is also important for the conservation and enhancement of archaeological sites, able to generate multiple effects—not only strictly cultural, but also social, environmental, and financial—in their reference area. Although today, decisions on investments to be implemented are seldom supported by logical and operational methodologies able to rationalize the selection processes. Thus, proposing and implementing survey instruments to optimize the use of funds, in the light of a technical-economic process that is valid on a methodological level—that is repeatable and not complex to use—is likely necessary. This paper proposes a multicriteria evaluation model for the choice among projects concerning archaeological sites. According to pre-established criteria, the analysis protocol is defined using the algorithms of discrete linear programming, already successfully used in urban and territorial planning. These algorithms are written in A Mathematical Programming Language (AMPL); software which allows the consideration of several—both technical and economic—constraints that the system imposes. The model is verified by a case study, highlighting its potential and limits, as well as outlining future research perspectives. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
24 pages, 22830 KiB  
Article
How to Model Uncertain Service Life and Durability of Components in Life Cycle Cost Analysis Applications? The Stochastic Approach to the Factor Method
by Elena Fregonara and Diego Giuseppe Ferrando
Sustainability 2018, 10(10), 3642; https://doi.org/10.3390/su10103642 - 11 Oct 2018
Cited by 18 | Viewed by 3788
Abstract
The durability of components is characterized by uncertainty, and, consequently, their estimated service life is critical for building project evaluation. Data on the durability of components used as life cycle cost analysis (LCCA) model input are able to influence model construction, model outputs, [...] Read more.
The durability of components is characterized by uncertainty, and, consequently, their estimated service life is critical for building project evaluation. Data on the durability of components used as life cycle cost analysis (LCCA) model input are able to influence model construction, model outputs, and residual value calculations. This implies dealing with uncertainty in cost estimates, according to the real estate market dynamics and the economic trends of the construction sector, and in service life estimates during the project time-horizon. This paper acknowledges the methodology presented in previous studies, based on the stochastic global cost calculation. The aim is to propose a methodological step forward by introducing flexibility over time in model input, through a stochastic approach to the Factor Method (FM). This represents an advancement in respect to the FM normed by ISO 15686—part 1:2000. Two different frames, timber and aluminum, as components of a glass façade of an office building project (located in Turin, Northern Italy), are proposed as a case study. The results give full evidence of the capacity of lifespan variables to affect the global cost calculation, overcoming the effects of environmental and financial elements, in contrast with the consolidated literature. The study demonstrates that beta and gamma distributions are preferable when introducing flexibility over time during the building construction processes, confirming the literature on the topic. The methodology adopted is demonstrated to be an effective tool when in presence of alternative investment options, enforcing decision-making in a temporal perspective. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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17 pages, 274 KiB  
Article
Tripartite Efficacy Beliefs and Homeowner Participation in Multi-Owned Housing Governance
by Yung Yau
Sustainability 2018, 10(9), 3338; https://doi.org/10.3390/su10093338 - 18 Sep 2018
Cited by 4 | Viewed by 3059
Abstract
Homeowners’ collective actions are essential for effective governance of multi-owned housing (MOH) and a city’s sustainable development. Yet, not all homeowners keenly participate in MOH governance. Unpacking why homeowners decide to participate is thus insightful. So far, little work has been done on [...] Read more.
Homeowners’ collective actions are essential for effective governance of multi-owned housing (MOH) and a city’s sustainable development. Yet, not all homeowners keenly participate in MOH governance. Unpacking why homeowners decide to participate is thus insightful. So far, little work has been done on how perceived efficacies of property management agents (PMAs) shape collective actions in MOH governance. Founding upon the social cognitive theory and collective interest model, a theoretical model is built to empirically examine how proxy efficacy belief influences participation behaviors of homeowners. Drawing on the findings of a survey of 2035 homeowners in Hong Kong and Macau, this study reveals that participation level correlates positively with self and group efficacy beliefs but negatively with perceived proxy efficacy. Poor performance or incapacity of the PMAs triggers a higher degree of homeowner participation. The research findings have significant policy implications for promoting a better MOH upkeep culture. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
21 pages, 299 KiB  
Article
A Generalised Model of Ground Lease Pricing
by Maria Trojanek, Marcin Anholcer, Audrius Banaitis and Radoslaw Trojanek
Sustainability 2018, 10(9), 3203; https://doi.org/10.3390/su10093203 - 7 Sep 2018
Cited by 3 | Viewed by 2846
Abstract
In this paper, we present a generalization of Mandell’s model for the estimation of ground lease pricing. We adjust the model so that it fits, in particular, the Polish legal regulations and situation of the Polish real estate market. The model involves two [...] Read more.
In this paper, we present a generalization of Mandell’s model for the estimation of ground lease pricing. We adjust the model so that it fits, in particular, the Polish legal regulations and situation of the Polish real estate market. The model involves two aspects. The first is the perpetual usufruct, a form of owning the ground similar to a long-term lease, but having some specific features. The second is allowing lease rent adjustments after some fixed period, meaning we consider the situation where the payments are fixed during certain periods as defined in the contract. The proposed model determines the minimum lease amount for the owner, which is the rate at which it is beneficial to lease the property, and the maximum for the lessee, which is the amount above which the lease is unprofitable for the leaseholder or perpetual usufruct. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
16 pages, 1462 KiB  
Article
Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach
by Vincenzo Del Giudice, Francesca Salvo and Pierfrancesco De Paola
Sustainability 2018, 10(9), 3085; https://doi.org/10.3390/su10093085 - 30 Aug 2018
Cited by 12 | Viewed by 2763
Abstract
Applied to real estate markets analysis, the resampling methods aim to contribute to the knowledge growth of real estate market dynamics, overcoming the issues related to the data scarcity and operational limits of traditional statistical theory. Among resampling methods, the Bootstrap technique appears [...] Read more.
Applied to real estate markets analysis, the resampling methods aim to contribute to the knowledge growth of real estate market dynamics, overcoming the issues related to the data scarcity and operational limits of traditional statistical theory. Among resampling methods, the Bootstrap technique appears to be the most suitable for the interpretation of real estate phenomena. In this study, for residential properties located in Cosenza (Calabria Region, Italy), a Bootstrap approach has been used in order to determine the marginal prices of the real estate characteristics detected, comparing the results with those obtainable with a traditional Multiple Regression Analysis. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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20 pages, 4097 KiB  
Article
Housing Vulnerability and Property Prices: Spatial Analyses in the Turin Real Estate Market
by Alice Barreca, Rocco Curto and Diana Rolando
Sustainability 2018, 10(9), 3068; https://doi.org/10.3390/su10093068 - 28 Aug 2018
Cited by 26 | Viewed by 5099
Abstract
In the literature, several vulnerability/resilience indicators and indexes are based and assessed by taking into account and combining different dimensions. Housing vulnerability is one of these dimensions and is strictly related to the buildings’ physical features and to the socio-economic condition of their [...] Read more.
In the literature, several vulnerability/resilience indicators and indexes are based and assessed by taking into account and combining different dimensions. Housing vulnerability is one of these dimensions and is strictly related to the buildings’ physical features and to the socio-economic condition of their occupants. This research aims to study housing vulnerability in relation to the real estate market by identifying possible indicators and spatially analyzing their influence on property prices. Assuming the city of Turin and its territorial segmentation as a case study, spatial analyses were performed to take into account the presence of spatial dependence and to identify the variables that significantly influence the process of property price determination. The results of this study highlighted the fact that two housing vulnerability indicators, representative of fragile buildings’ physical features, were spatially correlated with property prices and had a significant and negative influence on them. In addition, their comparison with two social vulnerability indicators demonstrated that the presence of economical buildings and council houses was spatially correlated with the presence of people with a low education level. The results of the spatial regression model also confirmed that one of the social vulnerability indicators had the highest and most negative explanatory power in the property price determination process. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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22 pages, 4727 KiB  
Article
Values, Memory, and the Role of Exploratory Methods for Policy-Design Processes and the Sustainable Redevelopment of Waterfront Contexts: The Case of Officine Piaggio (Italy)
by Cristina Coscia, Giulia Lazzari and Irene Rubino
Sustainability 2018, 10(9), 2989; https://doi.org/10.3390/su10092989 - 22 Aug 2018
Cited by 20 | Viewed by 4503
Abstract
In the last few decades the renewal of waterfront contexts has been especially inspired by neoliberal approaches favoring the creation of residential units and entertainment facilities. However, sustainability frameworks suggest that the economic dimension should be interpreted in a way that goes beyond [...] Read more.
In the last few decades the renewal of waterfront contexts has been especially inspired by neoliberal approaches favoring the creation of residential units and entertainment facilities. However, sustainability frameworks suggest that the economic dimension should be interpreted in a way that goes beyond the profitability of the interventions and that takes into account non-monetary values as well. In light of the complex social value (CSV) theory—which considers as a fundamental value component the intrinsic values attributed by communities to environmental and cultural heritage resources—this article proposes the adoption of exploratory methods to firstly map and then integrate citizens’ points of view into the evaluation and design of redevelopment scenarios, selecting the ex-industrial complex of Officine Piaggio (Italy) as a case study. Survey results highlighted that discrepancies between the new functions advanced by official redevelopment proposals and citizens’ opinions were present, and that values such as memory and collective meaning need to be considered if multidimensional sustainability represents a goal. Coherent with these results, a new project scenario is then envisioned and implications related to the application of exploratory methods in the decision-making and policy-design processes are finally advanced. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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25 pages, 864 KiB  
Article
Managing Bubbles in the Korean Real Estate Market: A Real Options Framework
by Kyungwon Kim and Jae Wook Song
Sustainability 2018, 10(8), 2875; https://doi.org/10.3390/su10082875 - 13 Aug 2018
Cited by 5 | Viewed by 4177
Abstract
The aim of this paper is to propose a real options framework to measure and manage bubbles in the Korean real estate market. The proposed framework carefully defines and utilizes the unique leasing mechanism in Korea, called the Jeonse system, a tentative contract [...] Read more.
The aim of this paper is to propose a real options framework to measure and manage bubbles in the Korean real estate market. The proposed framework carefully defines and utilizes the unique leasing mechanism in Korea, called the Jeonse system, a tentative contract for one or two years with a large amount of deposit, to represent the value of residence. Furthermore, the proposed framework applies the volatility with heteroscedasticity to improve the numerical accuracy in comparison to the traditional real options valuation model. The results of the model ultimately suggest the investment strategy that takes into account the measured bubbles in the market. Specifically, given that the Korean real estate market could be regarded as an American option, the investment strategy with early exercise completely eliminates the existing arbitrage opportunities in both long and short positions. In this context, the investment decisions based on the results of the proposed framework are expected to encourage the reflection of bubble-related information in the market, which eventually reduces the formation of bubbles via market mechanism for arbitrage elimination. In conclusion, the bubble-related information obtained from the model is expected to contribute to the stability of the real estate market by reducing the volatility of house price and quick price adjustment to new information. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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17 pages, 3800 KiB  
Article
Research on the Influence of Real Estate Development on Private Investment: A Case Study of China
by Jiangtao Li, Jianyue Ji, Huiwen Guo and Lei Chen
Sustainability 2018, 10(8), 2659; https://doi.org/10.3390/su10082659 - 28 Jul 2018
Cited by 13 | Viewed by 4462
Abstract
Private investment in China, as a developing country, is an important source of financing for Chinese SMEs (Small and Medium-Size Enterprises) and has played a major role in the development of the real economy. However, in 2016, the growth rate of private investment [...] Read more.
Private investment in China, as a developing country, is an important source of financing for Chinese SMEs (Small and Medium-Size Enterprises) and has played a major role in the development of the real economy. However, in 2016, the growth rate of private investment in China dropped from 10.18% to 3.17%, which had a significant impact on the real economy. At the same time, China’s real estate market has developed rapidly, attracting a large number of capital inflows. The relationship between real estate development and private investment in China is worth considering. This study first, theoretically analyzes the influence mechanism of real estate industry on private investment, pointing out that within a modest development range, the development of real estate industry can promote private investment through the industrial linkage, urbanization, and balance sheet effects, but when real estate is overdeveloped, it has an inhibitory effect on private investment through vampire effect, raising costs and reducing demand effect. In other words, real estate has different effects on private investment in different developmental periods. Therefore, there is a non-linear relationship between the two variables. Second, the relevant provincial panel data of 31 provinces in mainland China from 2003 to 2015 were selected. Using the dynamic panel system Generalized Method of Moments (GMM), this study estimated the correlation between real estate development and private investment. The empirical results showed that the development of the real estate industry has a significant impact on the level of private investment; the two showing an “inverted U-shaped” relationship. At present, in some provinces in China, the real estate industry has exceeded the inverted U-shaped threshold. To boost the vitality of private investment in promoting real economic growth, the development of the real estate industry should be restricted, and house prices should be properly regulated. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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21 pages, 9217 KiB  
Article
Economic–Environmental Sustainability in Building Projects: Introducing Risk and Uncertainty in LCCE and LCCA
by Elena Fregonara, Diego Giuseppe Ferrando and Sara Pattono
Sustainability 2018, 10(6), 1901; https://doi.org/10.3390/su10061901 - 6 Jun 2018
Cited by 35 | Viewed by 4283
Abstract
The aim of this paper is to propose a methodology for supporting decision-making in the design stages of new buildings or in the retrofitting of existing heritages. The focus is on the evaluation of economic–environmental sustainability, considering the presence of risk and uncertainty. [...] Read more.
The aim of this paper is to propose a methodology for supporting decision-making in the design stages of new buildings or in the retrofitting of existing heritages. The focus is on the evaluation of economic–environmental sustainability, considering the presence of risk and uncertainty. An application of risk analysis in conjunction with Life-Cycle Cost Analysis (LCCA) is proposed for selecting the preferable solution between technological options, which represents a recent and poorly explored context of analysis. It is assumed that there is a presence of uncertainty in cost estimating, in terms of the Life-Cycle Cost Estimates (LCCEs) and uncertainty in the technical performance of the life-cycle cost analysis. According to the probability analysis, which was solved through stochastic simulation and the Monte Carlo Method (MCM), risk and uncertainty are modeled as stochastic variables or as “stochastic relevant cost drivers”. Coherently, the economic–financial and energy–environmental sustainability is analyzed through the calculation of a conjoint “economic–environmental indicator”, in terms of the stochastic global cost. A case study of the multifunctional building glass façade project in Northern Italy is proposed. The application demonstrates that introducing flexibility into the input data and the duration of the service lives of components and the economic and environmental behavior of alternative scenarios can lead to opposite results compared to a deterministic analysis. The results give full evidence of the environmental variables’ capacity to significantly perturb the model output. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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17 pages, 1850 KiB  
Article
Optimal Cost–Quality Trade-Off Model for Differentiating Presale Housing Quality Strategies
by Yi-Kai Juan and I-Chieh Lin
Sustainability 2018, 10(3), 680; https://doi.org/10.3390/su10030680 - 2 Mar 2018
Cited by 2 | Viewed by 3881
Abstract
Housing quality (HQ) has been a long-standing concern for both developers and homebuyers. Currently, HQ depends on the expected profit and subjectivity of the developers, and homebuyers only have a passive choice of whether to accept housing with such quality. Asian housing supply [...] Read more.
Housing quality (HQ) has been a long-standing concern for both developers and homebuyers. Currently, HQ depends on the expected profit and subjectivity of the developers, and homebuyers only have a passive choice of whether to accept housing with such quality. Asian housing supply markets have largely adopted the presale housing system. Under this system, developers are able to verify future occupants before commencing construction, enabling them to provide customized designs and differentiated quality items in order to meet user demands and value. Consequently, HQ can be enhanced. A cost–quality trade-off model was developed using a genetic algorithm to help decision-makers identify the optimal HQ differentiation strategy that simultaneously satisfies homebuyers’ expectations of quality and developers’ expectations of profits. The findings showed that the presale housing system effectively improves HQ. A 6% increase in homebuyers’ budgets can achieve the optimal quality improvement effect, while an 8% or more increase in developers’ construction costs in order to improve HQ can generate an additional premium for the developers. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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28 pages, 562 KiB  
Article
A Methodology for the Selection of Multi-Criteria Decision Analysis Methods in Real Estate and Land Management Processes
by Maria Rosaria Guarini, Fabrizio Battisti and Anthea Chiovitti
Sustainability 2018, 10(2), 507; https://doi.org/10.3390/su10020507 - 13 Feb 2018
Cited by 112 | Viewed by 13244
Abstract
Real estate and land management are characterised by a complex, elaborate combination of technical, regulatory and governmental factors. In Europe, Public Administrators must address the complex decision-making problems that need to be resolved, while also acting in consideration of the expectations of the [...] Read more.
Real estate and land management are characterised by a complex, elaborate combination of technical, regulatory and governmental factors. In Europe, Public Administrators must address the complex decision-making problems that need to be resolved, while also acting in consideration of the expectations of the different stakeholders involved in settlement transformation. In complex situations (e.g., with different aspects to be considered and multilevel actors involved), decision-making processes are often used to solve multidisciplinary and multidimensional analyses, which support the choices of those who are making the decision. Multi-Criteria Decision Analysis (MCDA) methods are included among the examination and evaluation techniques considered useful by the European Community. Such analyses and techniques are performed using methods, which aim to reach a synthesis of the various forms of input data needed to define decision-making problems of a similar complexity. Thus, one or more of the conclusions reached allow for informed, well thought-out, strategic decisions. According to the technical literature on MCDA, numerous methods are applicable in different decision-making situations, however, advice for selecting the most appropriate for the specific field of application and problem have not been thoroughly investigated. In land and real estate management, numerous queries regarding evaluations often arise. In brief, the objective of this paper is to outline a procedure with which to select the method best suited to the specific queries of evaluation, which commonly arise while addressing decision-making problems. In particular issues of land and real estate management, representing the so-called “settlement sector”. The procedure will follow a theoretical-methodological approach by formulating a taxonomy of the endogenous and exogenous variables of the multi-criteria analysis methods. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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17 pages, 4631 KiB  
Article
Immigration and the Housing Market: The Case of Castel Volturno, in Campania Region, Italy
by Fabiana Forte, Valentina Antoniucci and Pierfrancesco De Paola
Sustainability 2018, 10(2), 343; https://doi.org/10.3390/su10020343 - 29 Jan 2018
Cited by 23 | Viewed by 5429
Abstract
According to Eurostat, Italy is the fifth country of the European Union per immigrant population. The complexity of the phenomenon, as it has evolved in recent years, leads to analyzing it from a specific point of view, that of the real estate market. [...] Read more.
According to Eurostat, Italy is the fifth country of the European Union per immigrant population. The complexity of the phenomenon, as it has evolved in recent years, leads to analyzing it from a specific point of view, that of the real estate market. The article represents the early stage of research on the housing condition of the immigrant population in the Southern Italy and its effect on the housing market. First, we describe the spatial segregation phenomenon affecting the immigrant population in Campania Region; then we analyze data of the municipality of Castel Volturno, which has one of the greater migratory pressure throughout the whole region. We provide statistical regressions correlating housing prices and socio-economic features from 2006 to 2016. The results confirm the findings of the current literature on the subject: there is a specific phenomenon associated with the presence of an immigrant population residing in conjunction with a reduction of housing prices. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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19 pages, 297 KiB  
Article
Have Housing Prices Gone with the Smelly Wind? Big Data Analysis on Landfill in Hong Kong
by Rita Yi Man Li and Herru Ching Yu Li
Sustainability 2018, 10(2), 341; https://doi.org/10.3390/su10020341 - 29 Jan 2018
Cited by 40 | Viewed by 13643
Abstract
Unlike many other places around the globe, Hong Kong is a small city with a high population density. Some housing units are built near the sources of an externality, such as a landfill site. As the blocks of buildings are particularly tall, many [...] Read more.
Unlike many other places around the globe, Hong Kong is a small city with a high population density. Some housing units are built near the sources of an externality, such as a landfill site. As the blocks of buildings are particularly tall, many are walled buildings that block the bad odor from the landfill. Thus, the wind blowing from a landfill site may not affect the entire building estate. Some buildings are more heavily affected than others, partly because walled buildings built near landfills are rare. Only a few studies currently examine the correlation between wind direction and the prices of walled buildings. In this paper, we aim to bridge this research gap by illustrating Hong Kong as a case study. Most previous research studies only examine a few factors affecting housing prices. Modern big data is characterized by its large volume of data, which includes various types of data that analysts would not necessarily sample, but instead merely observe to track what happens. Therefore, another innovative point of our paper, is that we adopt a big data approach to study this issue. In this aspect, this paper is the first of its kind. There are 53,071 observations in the 1999 to 2014 dataset, with 2,175,911 data entries. Our results reflect that when more municipal solid waste is sent to the South East New Territories Landfill, residents’ complaints in Tseung Kwan O increase. However, entire property prices in the region also increase, which rejects our hypothesis. We speculate that as more people become aware of the housing estate due to complaints, with only a limited number of housing units affected by the smell, since the wind usually only blows in certain directions, the “advertisement effect” originating from complaints about the bad smell boosts the property prices of the unaffected units. That is, people become aware of the existence of the property, visit the site, and discover that only specific units facing one particular direction are affected. Then, they purchase units that are unaffected by the smelly wind, leading to an overall increase in property prices. The study’s results may provide a new perspective on urban planning, and possible implications for other cities in view of the constant increase in population and expansion of landfill sites. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
401 KiB  
Article
Real Estate Appraisals with Bayesian Approach and Markov Chain Hybrid Monte Carlo Method: An Application to a Central Urban Area of Naples
by Vincenzo Del Giudice, Pierfrancesco De Paola, Fabiana Forte and Benedetto Manganelli
Sustainability 2017, 9(11), 2138; https://doi.org/10.3390/su9112138 - 21 Nov 2017
Cited by 33 | Viewed by 4925
Abstract
This paper experiments an artificial neural networks model with Bayesian approach on a small real estate sample. The output distribution has been calculated operating a numerical integration on the weights space with the Markov Chain Hybrid Monte Carlo Method (MCHMCM). On the same [...] Read more.
This paper experiments an artificial neural networks model with Bayesian approach on a small real estate sample. The output distribution has been calculated operating a numerical integration on the weights space with the Markov Chain Hybrid Monte Carlo Method (MCHMCM). On the same real estate sample, MCHMCM has been compared with a neural networks model (NNs), traditional multiple regression analysis (MRA) and the Penalized Spline Semiparametric Method (PSSM). All four methods have been developed for testing the forecasting capacity and reliability of MCHMCM in the real estate field. The Markov Chain Hybrid Monte Carlo Method has proved to be the best model with an absolute average percentage error of 6.61%. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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Review

Jump to: Research

11 pages, 4730 KiB  
Review
How Can Street Art Have Economic Value?
by Fabiana Forte and Pierfrancesco De Paola
Sustainability 2019, 11(3), 580; https://doi.org/10.3390/su11030580 - 22 Jan 2019
Cited by 18 | Viewed by 10685
Abstract
The following paper analyzes the phenomenon of Street Art with particular attention to the increasing correlation between practices of Street Art and socio-economic dynamics. From the perspective of recognizing a possible formulation of the economic value of Street Art, the paper aims to [...] Read more.
The following paper analyzes the phenomenon of Street Art with particular attention to the increasing correlation between practices of Street Art and socio-economic dynamics. From the perspective of recognizing a possible formulation of the economic value of Street Art, the paper aims to describe the impacts which Street Art is having in some urban contexts, where the regeneration processes have found in this new form of “re-signification” an innovative modality of intervention. Some impacts have economic nature (direct, indirect or inducted), others are only social and cultural. Starting from an overview concerning the impacts of Street Art on the property market in several urban contexts, a first evaluation of what is happening in some neighborhoods of the metropolitan city of Naples is presented. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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44 pages, 3216 KiB  
Review
A Systematic Review of Smart Real Estate Technology: Drivers of, and Barriers to, the Use of Digital Disruptive Technologies and Online Platforms
by Fahim Ullah, Samad M. E. Sepasgozar and Changxin Wang
Sustainability 2018, 10(9), 3142; https://doi.org/10.3390/su10093142 - 3 Sep 2018
Cited by 111 | Viewed by 33867
Abstract
Real estate needs to improve its adoption of disruptive technologies to move from traditional to smart real estate (SRE). This study reviews the adoption of disruptive technologies in real estate. It covers the applications of nine such technologies, hereby referred to as the [...] Read more.
Real estate needs to improve its adoption of disruptive technologies to move from traditional to smart real estate (SRE). This study reviews the adoption of disruptive technologies in real estate. It covers the applications of nine such technologies, hereby referred to as the Big9. These are: drones, the internet of things (IoT), clouds, software as a service (SaaS), big data, 3D scanning, wearable technologies, virtual and augmented realities (VR and AR), and artificial intelligence (AI) and robotics. The Big9 are examined in terms of their application to real estate and how they can furnish consumers with the kind of information that can avert regrets. The review is based on 213 published articles. The compiled results show the state of each technology’s practice and usage in real estate. This review also surveys dissemination mechanisms, including smartphone technology, websites and social media-based online platforms, as well as the core components of SRE: sustainability, innovative technology and user centredness. It identifies four key real estate stakeholders—consumers, agents and associations, government and regulatory authorities, and complementary industries—and their needs, such as buying or selling property, profits, taxes, business and/or other factors. Interactions between these stakeholders are highlighted, and the specific needs that various technologies address are tabulated in the form of a what, who and how analysis to highlight the impact that the technologies have on key stakeholders. Finally, stakeholder needs as identified in the previous steps are matched theoretically with six extensions of the traditionally accepted technology adoption model (TAM), paving the way for a smoother transition to technology-based benefits for consumers. The findings pertinent to the Big9 technologies in the form of opportunities, potential losses and exploitation levels (OPLEL) analyses highlight the potential utilisation of each technology for addressing consumers’ needs and minimizing their regrets. Additionally, the tabulated findings in the form of what, how and who links the Big9 technologies to core consumers’ needs and provides a list of resources needed to ensure proper information dissemination to the stakeholders. Such high-quality information can bridge the gap between real estate consumers and other stakeholders and raise the state of the industry to a level where its consumers have fewer or no regrets. The study, being the first to explore real estate technologies, is limited by the number of research publications on the SRE technologies that has been compensated through incorporation of online reports. Full article
(This article belongs to the Special Issue Real Estate Economics, Management and Investments)
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