The value of air quality in housing markets: A comparative study of housing sale and rental markets in China

Jia-ning, Wang; Lee, Chyi Lin

doi:10.1016/j.enpol.2021.112601

Cited by 34 publications

(15 citation statements)

References 75 publications

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“…Feige et al [26] found that, in the absence of a green rating system, rental values were higher for properties that offered features associated with sustainability, especially features associated with water efficiency. In a similar vein, various stated preference studies have found that individuals report a willingness to pay significant price premiums for homes with green features [25] (p. 2239), while a number of studies have found that people are willing to pay more to live in homes and areas that provide access to environmental amenities associated with environmental sustainability, such as better air quality [33], urban trees [34,35], and better water quality [36]. Turning to property advertising, Tateishi [6] found that greenfield housing developments with green advertising claims commanded a price premium.…”

Section: Sustainability Advertising In the Residential Property Sectormentioning

confidence: 97%

Sustainability Messages in Residential Property Advertising

2022

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Companies and brands are increasingly addressing issues of sustainability in their marketing and advertising as they respond to consumers’ evolving interests and preferences. While studies have examined the presence of sustainability messages in advertising in general, and in a number of discrete industries, the use of these messages in residential property advertising is critically understudied. Some homebuyers, however, appear interested in these messages, as evidence suggests they ascribe value to certain sustainability claims and features. An analysis of the textual and visual content of 100 property adverts for city centre flats, listed for sale in two English cities in early 2022, afforded detailed insights into the positioning of sustainability in residential real estate advertising. Findings from this analysis indicate that explicit sustainability messages are rare. Property and locational features related to environmental sustainability are mentioned more frequently than those related to social sustainability. Features related to economic sustainability are discussed in adverts targeted at property investors. Sparse explicit discussion of sustainability in adverts might imply that there is little general concern for this issue, either amongst those selling property and/or amongst those buying property. An implication of this might be that pro-sustainability measures targeted at the housing sector may encounter a muted response from actors within the sector, potentially frustrating the implementation of those measures. For homebuyers who are interested in a property’s sustainability, the findings suggest that they are poorly served by current practices in property advertising. Estate agents and developers wishing to appeal to these sustainability-minded consumers might do well to incorporate greater commentary on a property’s sustainability features in their advertising materials.

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Section: Sustainability Advertising In the Residential Property Sectormentioning

confidence: 97%

Sustainability Messages in Residential Property Advertising

2022

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“…This also highlights the importance of a dedicated study on office buildings), we will only examine office rent and vacancy rate determinants in this paper. Despite extensive studies of the office sector (An et al [29]; Lee et al [30]; Crosby et al [23]; Khan et al [31]) and housing markets [32,33] internationally, empirical research on Chinese office buildings has been relatively lacking, in part due to its short history as China only adopted its "open door" policy in the late 1970s (Hui et al [34]; Zhang et al [35]). Early research examined Shanghai office rent equilibrium and the related submarkets (Ke & White [36]; White & Ke [37]), and a comparison study was conducted for the Beijing and Shanghai office markets (Ke & White [38]).…”

Section: Literature Review 21 Office Market Researchmentioning

confidence: 99%

The COVID-19 Sentiment and Office Markets: Evidence from China

2022

Self Cite

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This study examines the impact of COVID-19 sentiment on office building rents and vacancy rates in China with a COVID-19 sentiment index constructed based on Baidu search queries on COVID-19-related keywords. We analyzed the data of office buildings and economic data from 2013 Q3 to 2022 Q2 in seven major Chinese cities with a two-stage Error Correction Model framework. We found that a heightened level of COVID-19 sentiment significantly and adversely affects the Chinese office buildings market. Specifically, office building rents decrease more than 8% if a city is exposed to an increase of one unit of COVID-19 sentiment for an entire quarter. The interaction terms model further reveals that the COVID-19 sentiment has a more substantial impact on office building rents where office vacancy is higher, reflecting an asymmetric effect. The findings here support the fear sentiment hypothesis. The findings suggest that a heightened level of investors’ COVID-19 sentiment resulted in a deterioration of office rents, reinforcing the role of investors’ sentiment in the pricing of office buildings. The findings suggest that investors should consider investor sentiment, particularly COVID-19 sentiment, in their decision-making.

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“…According to Tiebout's equilibrium analysis of public goods, local governments provide public goods of different qualities through fiscal expenditures. Under the premise of an unrestricted population flow and complete information, people will choose residential areas and corresponding public goods according to their income and preferences; areas with high-quality public goods will attract more people to settle [54,55]. When more and more people settle in areas with a higher quality of public goods, the increase in demand will only push up the prices of public goods because the supply elasticity is weak.…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

How Does the Quality of Junior High Schools Affect Housing Prices? A Quasi-Natural Experiment Based on the Admission Reform in Chengdu, China

Tian

Liu

2022

Land

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We exploit an admission reform of junior high schools in Chengdu, China, to identify the capitalization effect of high-quality educational facilities on housing prices. Since 2013, some elite junior high schools have conducted an experimental policy called the four-year junior high school project (hereinafter referred to as FJHP). The FJHP reduced the admission chances to elite junior high schools within the FJHP school districts via lottery. Based on 88,745 resale housing transaction records from Chengdu during 2010–2018, we used the difference-in-difference (DID) methodology to estimate the average price effect of the FJHP. Furthermore, we established a DID model with quantile regression to estimate the heterogeneous effect of the FJHP on housing prices. The empirical results show that the implementation of the FJHP reduced the housing prices in the relevant school districts by at least 5.5%, and its price reduction effect increased over time. The quantile regression results show that households with high-priced housing are more sensitive to the change of admission chance to elite junior high schools, which indicates the inequality in accessing high-quality school facilities under the designating admission zone policy. This study concludes with implications for improving the accessibility of school facilities.

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The value of air quality in housing markets: A comparative study of housing sale and rental markets in China

Cited by 34 publications

References 75 publications

Sustainability Messages in Residential Property Advertising

Sustainability Messages in Residential Property Advertising

The COVID-19 Sentiment and Office Markets: Evidence from China

How Does the Quality of Junior High Schools Affect Housing Prices? A Quasi-Natural Experiment Based on the Admission Reform in Chengdu, China

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