The impact of residential development on nearby housing prices
Research output: Contribution to journal › Article › Scientific › peer-review
|Number of pages||4|
|Journal||International Journal of Housing Markets and Analysis|
|Publication status||Published - 2016|
|Publication type||A1 Journal article-refereed|
Design/methodology/approach - Whether a multi-story apartment building development is followed by an increase in housing values depends on both positive and negative externalities. To specify valuation effects of proximate development projects, advanced research design combining matched sample methodology and hedonic-based difference-in-difference approach is used.
Findings It appears from the analysis that completion of a single multi-story apartment building has an immediate positive impact on apartment values within 300 metre radius. While, there is no statistically significant impact on price trend.
Research limitations - This paper studies apartment values only in Helsinki Metropolitan Area, Finland, and it is important to notice that local regulations and market conditions may have a notable impact on the outcomes.
Originality/value This study is the first of its kind to provide with statistically significant evidence for positive impacts from multi-story apartment building development in Finnish residential high-rise areas, and may have a crucial role in helping to dispel prejudices related to such developments.
ASJC Scopus subject areas
- residential real estate, real estate development, infill development, externalities, residential property values, multi-story apartment buildings