A Present Value Approach to Analysing Residential Property

A Present Value Approach to Analysing Residential Property

We adopt a simple Present Value (PV) methodology to investigate the interaction between interest rates, inflation and taxation on the fundamental value of residential real estate for a rational investor with varying degrees of risk-aversion. This approach allows the calculation of the fair present value of residential real estate from only a small number of macro-economic variables, and avoids ...

What drives Hong Kong’s residential property market—A Markov switching present value model

The property market of Hong Kong is one of the most volatile in the world. This study attempts to investigate the proposition that the Hong Kong residential market is only driven by fundamentals. The investigation is based on a Markov switching present value model, which explicitly accounts for a rational speculative bubble. The estimates show that not only does the model capture the asymmetric...

A Genetic-DEA Approach to Reveal Property Rights Priorities

Property Value Impacts of Hemlock Woolly Adelgid in Residential Forests

This study estimates the economic losses attributable to a nonindigenous forest insect, the hemlock woolly adelgid (Adelges tsuga), using cross-sectional and difference-in-difference hedonic price models. The data span a decade of residential property value transactions in West Milford, New Jersey. Hemlock health in naturally regenerated hemlock stands was measured biannually over this period u...

Water Quality and Residential Property Values: A Natural Experiment Approach

We use hedonic techniques to measure the impact of improved water quality on inland real estate values. By considering a unique natural experiment setting where consistent and recognizable variation in water quality across two rivers within a small geographic area is well known to market participants, we avoid the major problems inherent in hedonic water quality studies. Controlling for spatial...