Abstract:Purpose
This study aims to identify clusters amongst the county housing markets in Poland, taking into account the criteria of size and quality of the housing stock, as well as price level. In addition, this work is intended to detect the socio-economic factors driving the cluster formation.
Design/methodology/approach
To group the studied housing markets into homogeneous clusters, this analysis uses a proprietary algorithm based on taxonomic and k-means++ methods. In turn, the generalised ordered logit (gol… Show more
“…It is also a distinctive feature of the dynamics of the Polish housing market that both sales prices and rents in major Polish cities do not converge to a single equilibrium but form convergence clubs, as can be seen in Figs. 1 , 2 , and 3 and has also been demonstrated empirically by Tomal ( 2019a , 2021a , b ). Fig.…”
Section: The Characteristics Of the Major Housing Markets In Polandsupporting
confidence: 59%
“…The choice of Poland as the place of analysis, and subsequently the major cities located within its territory, is not accidental. First, as Tomal ( 2021a , b ) notes, the housing market in Poland is under-researched. Second, the knowledge of bubble and downward behaviours in Poland is important not only for Polish stakeholders but also for foreign entities, which results from spillovers between real estate markets in different countries (Agyemang et al, 2021 ).…”
This article aims to check whether there has been a price bubble in the Polish major housing markets in recent years. To accomplish this goal, the log price-to-rent ratios in Polish provincial cities were analysed. In order to avoid incorrect conclusions, the log price-to-rent ratio using the instrumental variable estimation and ordinary least squares methods was decomposed into two components: fundamental and non-fundamental. The latter was then examined using the Phillips, Shi, and Yu procedure to detect explosive and downward movements. The results of the study showed that, in general, over 2011, actual log price-to-rent ratios in the analysed cities were below their fundamental values, i.e., a negative price bubble existed. However, more or less since the beginning of 2013, the surveyed markets have seen an increasing level of the non-fundamental component of the index under study, and its particularly explosive movements are visible in the first quarters of 2014. Finally, this analysis indicated future research directions and study implications for Polish policy-makers, housing investors, and households.
“…It is also a distinctive feature of the dynamics of the Polish housing market that both sales prices and rents in major Polish cities do not converge to a single equilibrium but form convergence clubs, as can be seen in Figs. 1 , 2 , and 3 and has also been demonstrated empirically by Tomal ( 2019a , 2021a , b ). Fig.…”
Section: The Characteristics Of the Major Housing Markets In Polandsupporting
confidence: 59%
“…The choice of Poland as the place of analysis, and subsequently the major cities located within its territory, is not accidental. First, as Tomal ( 2021a , b ) notes, the housing market in Poland is under-researched. Second, the knowledge of bubble and downward behaviours in Poland is important not only for Polish stakeholders but also for foreign entities, which results from spillovers between real estate markets in different countries (Agyemang et al, 2021 ).…”
This article aims to check whether there has been a price bubble in the Polish major housing markets in recent years. To accomplish this goal, the log price-to-rent ratios in Polish provincial cities were analysed. In order to avoid incorrect conclusions, the log price-to-rent ratio using the instrumental variable estimation and ordinary least squares methods was decomposed into two components: fundamental and non-fundamental. The latter was then examined using the Phillips, Shi, and Yu procedure to detect explosive and downward movements. The results of the study showed that, in general, over 2011, actual log price-to-rent ratios in the analysed cities were below their fundamental values, i.e., a negative price bubble existed. However, more or less since the beginning of 2013, the surveyed markets have seen an increasing level of the non-fundamental component of the index under study, and its particularly explosive movements are visible in the first quarters of 2014. Finally, this analysis indicated future research directions and study implications for Polish policy-makers, housing investors, and households.
“…Some other scholars applied spatial statistics and the geographical information system to identify market segmentation, including the k-mean s clustering methods (Abraham et al ., 1994; Bourassa et al , 1999, 2003; Tu et al , 2007; Kamper et al. , 2018; Tomal, 2021).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Fernandez and Bucaram (2019) also estimated an unconditional quantile hedonic model and discussed the capitalisation of amenities into housing prices in different submarkets. Some other scholars applied spatial statistics and the geographical information system to identify market segmentation, including the k-means clustering methods (Abraham et al, 1994;Bourassa et al, 1999Bourassa et al, , 2003Tu et al, 2007;Kamper et al, 2018;Tomal, 2021).…”
PurposeThis paper aims to construct rental housing indices and identify market segmentation for more effective property-management strategies.Design/methodology/approachThe hedonic model was employed to construct the rental indices. Using the k-means++ and REDCAP (Regionalisation with Dynamically Constrained Agglomerative Clustering and Partitioning) approaches, the authors conducted clustering analysis and identified different market segmentation. The empirical study relied on the database of 80,212 actual rental transactions in Beijing, China, spanning 2016–2018.FindingsRental housing market segmentation may distribute across administrative boundaries. Properly segmented indices could provide a better account for the heterogeneity and spatial continuity of rental housing and as well be crucial for effective property management.Research limitations/implicationsResidential rent might not only vary over space but also interplays with housing price. It would be worth studying how the rental market functions together with the owner-occupied sector in the future.Practical implicationsResidential rental indices are of great importance for policymakers to be able to evaluate housing policies and for property managers to implement competitive strategies in the rental market. Their constructions largely depend on the analysis of market segmentation, a trade-off between housing spatial heterogeneity and continuity.Originality/valueThis paper fills the gap in knowledge concerning segmented rental indices construction, particularly in China. The spatial constrained clustering approach (REDCAP) was also initially introduced to identify regionalised market segmentation due to its superior performance.
“…The size of the houses was often discussed in characterizing houses (Yavas and Yang, 1995;Ferlan et al, 2017;Nachem, 2007;Rodgers, 1994;Burinskiene et al, 2011;Özsoy and S ahin, 2022;Wickramaarachchi et al, 2021;Tomal, 2021;Abidoye and Chan, 2016). However, the objective age and house condition are analyzed in detail.…”
Purpose
This study aims to provide a framework for assessing the technical condition of a house to determine its market value, including the identification of other price-setting factors and their statistical significance. Time on market (TOM) in relation to the technical condition of a house is also addressed.
Design/methodology/approach
The primary database contains 631 houses, and the initial asking price and selling price are examined. All the houses are located in the Brno–venkov district in the Czech Republic. Regression analysis was used to test the influence of price-setting factors. The standard ordinary least squares estimator and the maximum likelihood estimator were used in the frame of generalized linear models.
Findings
Using envelope components of houses separately, such as the façade condition, windows, roof, condition of interior and year of construction, brings better results than using a single factor for the technical condition. TOM was found to be 67 days lower for houses intended for demolition – as compared to new houses – and 18 days lower for houses to refurbishment.
Originality/value
To the best of the authors’ knowledge, this paper is original in the substitution of specific price-setting factors for factors relating to the technical condition of houses as well as in proposing the framework for professionals in the Czech Republic.
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