Abstract
One imperfection in housing markets is imperfect knowledge about legal interests such as ground leases. Both actual reduced legal interest as well as uncertainty surrounding rights and future lease payments for houses constructed on leased land may affect prices relative to houses built on freehold land. We use regression analysis of sales prices of condominium transactions in Helsinki to examine the effect ground leases have on house prices. We find that prices on condominiums constructed on leased lots are discounted at least 5 %, on average. In addition, we see that the announcement of potentially large increases in base rents upon renewal contributes to the discount.
| Original language | English |
|---|---|
| Pages (from-to) | 451-470 |
| Number of pages | 20 |
| Journal | Journal of Housing and the Built Environment |
| Volume | 30 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 11 Sept 2015 |
| Publication type | A1 Journal article-refereed |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 11 Sustainable Cities and Communities
Keywords
- Condominium
- Finland
- Ground leases
- House prices
- Housing markets
Publication forum classification
- Publication forum level 1
ASJC Scopus subject areas
- Geography, Planning and Development
- Urban Studies
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