The relationship between sustainability and housing value

Sustainability has rapidly become one of the most important issues in wider society, where recent attention has been focused on sustainable practices in the built environment such as the design, construction and operation of new buildings. Although detached houses are one of the largest land uses in the built environment, it is surprising that relatively little research has been conducted into the implementation and demand for sustainability. Even though the technology exists for increasing sustainability in housing, it appears that little attention has been given to the added value that sustainability can give to a property.

This paper discusses recent developments in sustainability with regards to housing. It identifies and groups the various options available to a housing owner, although the focus is placed on how much the sustainable features add (or detract) from the value of the home. Consideration is given to the existing valuation methods that are used to assess the value of a residential property and also the ease of implementation.

Windfarms, powerlines and phone masts : the changing face of stigma

Previous research has identified varying degrees of stigma attached to high voltage overhead transmission lines (HVOTLs) depending upon characteristics such as visibility, size, location and the potential impact on house value. In addition to HVOTLs there are other common types of infrastructure, namely mobile phone towers and windfarms, that are also large highly visible
structures and can exhibit similar characteristics. These similarities include varying levels of visibility from properties in the immediate vicinity, a high general profile in society and varying perceptions from surrounding residents about possible side effects. This research broadens the framework originally developed to study HVOTLs to encompass mobile phone towers and windfarms. It undertakes a literature review of research in this area and proposes a research methodology for identifying and quantifying the varying levels of stigma attached to these three forms of infrastructure. The final results will enable the resulting effect on property values to be better understood, and assist developers to fully understand their effect on devaluing land prices.

Sydney Opera House on eBay: enabling technologies, community and social value

Digital forms of participation with significant places, such the Sydney Opera House, are increasing. What can they reveal about communities of this World Heritage site? How do contingent forms of participation evidence the interconnectedness of tangible, intangible and digital forms of cultural heritage? Critical heritage scholars assert that social value is a central issue in cultural heritage. In an Australian context, ‘social value’ is used to denote the significance that communities have for places of cultural heritage. Unlike other forms of place-significance such as scientific, historic or aesthetic values, the assessment of social value is complex and difficult to evidence. This theoretical paper explores participation in place through two digital instances, buying a real tile on eBay and a virtual one on Own Our House a crowdfunding venture by the Opera House Trust. The paper seeks to reveal the way in which such online artefacts demonstrate how cultural significance is entangled in the everyday and the individual experience. It argues that these seemingly insignificant moments of participation are implicated in the personal and the emotional by connecting work within critical heritage studies with the work of media scholar Jose van Dijck. Then the paper reflects on the way in which these everyday forms of participation through digital technologies disrupts and complicates established ideas about communities upon which local, state, national and international heritage systems are based.

A greener house : the sustainable property investor's guide to buying, building and renovating

Sustainability is now an integral part of society and the built environment. Unfortunately many home owners and home-buyers are unaware of the relationship between sustainability and value, especially with regard to the potential added value to their home. Payback periods can be different depending on factors such as the initial capital outlay and the levels of depreciation and obsolescence, as well as savings made (if any) to the running costs of the home

Identifying house price diffusion patterns among Australian state capital cities

Prior research supports the proposition that house price diffusion shows a ripple effect along the spatial dimension. That is, house price changes in one region would reflect in subsequent house price changes in other regions, showing certain linkages among regions. Using the vector autoregression model and the impulse response function, this study investigates house price diffusion among Australia's state capital cities, examining the response of one market to the innovation of other markets and determining the lagged terms for the maximum absolute value of the other markets' responses. The results show that the most important subnational markets in Australia do not point to Sydney, rather towards Canberra and Hobart, while the Darwin market plays a role of buffer. The safest markets are Sydney and Melbourne. This study helps to predict house price movement trends in eight capital cities.

Understanding residential house prices : examining the contribution of social area analysis

A complete understanding of residential housing markets, particularly in relation to variations in house prices both within and between suburbs, continues to present challenges to property researchers and forecasters. Factors affecting changes in housing demand are not yet completely understood, and accordingly market changes cannot always be confidently predicted. Most urban cities contain precincts that have high or low house values at the same time, regardless of characteristics such as distance to the city centre, location of transport or topography. Exactly why these variations in suburb values occur is often unclear, although local residents are able to easily identify differences between the status of each suburb, especially when one area is clearly perceived as superior to another. Consequently, houses in premium suburbs are sold for substantially more than houses in other areas, primarily due to this perceived higher demand. An understanding of reasons behind varying levels of buyer demand has always been difficult to fully encapsulate in housing studies, even though clear links have been observed between housing affordability and the type of inhabitant that would live in a particular area. This study confirms that traditional economic indicators can not always observe the degree of purchaser and vendor willingness in the residential property market, as per the International Valuation Standards Committee definition of market value, and substantial consideration must also be given to characteristics of individual buyers and sellers within the marketplace. No longer can the focus be narrowly focussed just on endogenous factors such as interest rates and inflation levels.
Accordingly, this research draws the disciplines of demography and housing research closer together and looks to social indicators for an insight into the level of house prices. To establish this link, a two-stage process is adopted where social area analysis initially identifies the characteristics of suburbs within an urban area. This information is then used to examine variations in suburb values, resulting in a clearer understanding of the relationship between demographic variables and house prices. This research analysed changes in the value of established residential house prices in Melbourne, Australia as well as the relationship with social structure. The added dimension of time highlighted change, with data drawn from 1996 and 2001. The results confirmed the existence of strong linkages between social constructs and established house prices. Whilst acknowledging that the overall level of house values is influenced by external economic and political factors, differences between suburb values can be explained by demographic variables. The results confirm that increased emphasis must be placed upon demography when seeking to understand variations in residential property values between urban areas.

An interdependence analysis of Australian house prices using variance decomposition

Purpose - The purpose of this paper is to analyse the interdependencies of the house price growth rates in Australian capital cities.
Design/methodology/approach - A vector autoregression model and variance decomposition are introduced to estimate and interpret the interdependences among the growth rates of regional house prices in Australia.
Findings - The results suggest the eight capital cities can be divided into three groups: Sydney and Melbourne; Canberra, Adelaide and Brisbane; and Hobart, Perth and Darwin.
Originality/value - Based on the structural vector autoregression model, this research develops an innovative interdependence analysis approach of regional house prices based on a variance decomposition method.

Ripple effects of house prices : considering spatial correlations in geography and demography

Purpose: Studies into ripple effects have previously focused on the interconnections between house price movements across cities over space and time. These interconnections were widely investigated in previous research using vector autoregression models. However, the effects generated from spatial information could not be captured by conventional vector autoregression models. This research aimed to incorporate spatial lags into a vector autoregression model to illustrate spatial-temporal interconnections between house price movements across the Australian capital cities. Design/methodology/approach: Geographic and demographic correlations were captured by assessing geographic distances and demographic structures between each pair of cities, respectively. Development scales of the housing market were also used to adjust spatial weights. Impulse response functions based on the estimated SpVAR model were further carried out to illustrate the ripple effects. Findings: The results confirmed spatial correlations exist in housing price dynamics in the Australian capital cities. The spatial correlations are dependent more on the geographic rather than the demographic information. Originality/value: This research investigated the spatial heterogeneity and autocorrelations of regional house prices within the context of demographic and geographic information. A spatial vector autoregression model was developed based on the demographic and geographic distance. The temporal and spatial effects on house prices in Australian capital cities were then depicted.

Provision of facilities management services in Sri Lankan commercial organisations: is in-house involvement necessary?

Purpose - The purpose of this paper is to explore sourcing strategies for facilities management services using core-competency theory of outsourcing. The aim is to develop a screening framework for deciding the suitability of outsourcing versus in-house delivery for these services based on three levels of managerial functions prevalent in a typical commercial organization.

Design/methodology/approach - A questionnaire survey was administered for facilities managers in Sri Lanka to investigate the relative importance of these managerial functions for facilities management services and obtain their opinions on the best delivery mode. The managerial functions were derived from a literature review and verified using three semi-structured interviews prior to the questionnaire survey design.

Findings - The findings showed that facilities management services that are aligned to strategic functions are suitable for in-house delivery, while those that are aligned to tactical and operational functions for outsourcing.

Research limitations/implications - Further studies should be conducted and extended to other types of organizations beyond commercial ones. Secondly, the quantitative study employed a smaller sample (n = 40), and the survey items were based on the review of literature which was verified using a very small number of interviews (n = 3).

Practical implications - The proposed framework can be utilized when choosing the best facilities management approach for commercial organizations in developing countries such as Sri Lanka.

Originality/value - This study contributes to the body of knowledge on the subject of facilities management by exploring the context in Sri Lankan which has not previously been done.

The relationship between house prices and demographic variables: an Australian case study

Purpose – The process for examining the value of house prices in an urban city has given limited attention, if any, to demographic variables associated with urban geography. Although the disciplines of property/real estate and demography have moved closer, little progress has been made when modelling house prices using population-related data in the field of urban geography to explain the level of house prices.

Design/methodology/approach – This paper proposes an innovative model to examine the influence of population variables on the level of house prices. It used a two-stage approach as follows: principal components analysis (PCA) identified social dimensions from a range of demographic variables, which were then retained for further analysis. This information was sourced from two Australian Bureau of Statistics censuses undertaken involving all Melbourne residents during 1996, 2001, 2006 and 2011; multiple regression analysis examined the relationship between the retained factor scores from the PCA (as independent variables) and established residential house prices (as the dependent variable).

Findings – The findings confirm the demographic profile of each household, which is directly related to their decisions about housing location and house prices. Based on a case study of Melbourne, Victoria, it was demonstrated that households with specific demographic characteristics are closely related to a certain level of house prices at the suburban level.

Originality/value – This is an innovative study which has not been previously undertaken for an extended period of time to facilitate an analysis of change over time.