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Abstract
Purpose - Even as multi-story apartment building development proposals in existing neighbourhoods represent a substantial component of policy debate at local planning boards, there is limited evidence for the impact of such residential developments on surrounding apartment values. The void in knowledge is addressed in this study, and the impact of multi-story apartment building developments on apartment values in residential high-rise areas located outside city and district centres is investigated in Helsinki Metropolitan Area, Finland.
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.
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.
Original language | English |
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Pages (from-to) | 671-690 |
Number of pages | 4 |
Journal | International Journal of Housing Markets and Analysis |
Volume | 9 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2016 |
Publication type | A1 Journal article-refereed |
Keywords
- residential real estate
- real estate development
- infill development
- externalities
- residential property values
- multi-story apartment buildings
Publication forum classification
- Publication forum level 1
ASJC Scopus subject areas
- Building and Construction
- Economics, Econometrics and Finance (miscellaneous)
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Dive into the research topics of 'The impact of residential development on nearby housing prices'. Together they form a unique fingerprint.Activities
- 4 Media appearance
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Uuden rakentaminen nostaa hintoja myös naapurissa
Kurvinen, A. (Interviewee)
5 Jul 2016Activity: Other › Media appearance
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"Asuntojen hinnat nousevat, kun viereen rakennetaan uutta ja kalliimpaa"
Kurvinen, A. (Interviewee)
30 Jun 2016Activity: Other › Media appearance
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Kumma taloudellinen ilmiö – Uuden rakennuksen pystyttäminen kasvattaa vanhan hintaa
Kurvinen, A. (Interviewee)
28 Jun 2016Activity: Other › Media appearance