2016 AREUEA International Conference

Nase, I. (Participant)

Activity: Participating in or organising an eventParticipation in conference

Description

Pricing the quality of design in city centre apartments: A spatiotemporal modelling approach Abstract This paper analyses the impact of quality design on the real estate value of owner-occupied apartments sold during the period 2000-2008 in Belfast city centre. For the purpose it uses a dataset of 424 apartment transactions and develops a composite range of explanatory variables (and proxies) to supplement the hedonic modelling equation with variables that measure design quality. This paper improves upon the previous studies investigating the impact on design quality on value by evaluating various model specifications and employing a spatiotemporal autoregressive model for the final analysis. Additionally, it addresses the modelling challenges encountered in multi-unit residential buildings by explicitly accounting for building and neighbourhood effects in the weight matrices. Particular consideration is given to employing strong theoretical underpinnings in the construction of the weight matrices as one of the major criticisms in spatial econometrics. The key findings indicate that urban scale aspects of quality such as connectivity and vitality associated with building density add to real estate value. At the building level, quality features mostly valued by home buyers are namely appropriateness of material quality, fenestration and massing to the surroundings. These are considered to have a relatively easier visual perception than more complex concepts such as identity, material choice and overall condition.
Period6 Jul 20169 Jul 2016
Event typeConference
LocationAlicante, Spain

Keywords

  • Real estate value
  • design quality
  • spatiotemporal modelling
  • spatial econometrics
  • spatial weight matrices