The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method
This study investigated the spatial spillover effects of luxury housing during and after construction, in regards to increases in housing prices in neighboring areas as well as the spatial dependence of neighboring housing. This study focused on already completed luxury housing in Taipei, Taiwan. Fi...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2020-12-01
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| Series: | International Journal of Strategic Property Management |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/IJSPM/article/view/13649 |
| _version_ | 1818657832660107264 |
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| author | Chih-Min Liang Chun-Chang Lee You-Hsin Lin Zheng Yu Wen-Chih Yeh |
| author_facet | Chih-Min Liang Chun-Chang Lee You-Hsin Lin Zheng Yu Wen-Chih Yeh |
| author_sort | Chih-Min Liang |
| collection | DOAJ |
| description | This study investigated the spatial spillover effects of luxury housing during and after construction, in regards to increases in housing prices in neighboring areas as well as the spatial dependence of neighboring housing. This study focused on already completed luxury housing in Taipei, Taiwan. First, the nearest-neighbor matching approach of propensity score matching was used to overcome the problem of data heterogeneity. The difference-in-differences (DD) method and spatial econometrics were used for analysis. The empirical results indicated that the spatial error model had the best goodness of fit. This indicated that housing prices increased by 13.0% during construction of luxury housing nearby. This indicated that housing prices increased by 5.8% after the construction of luxury housing nearby. The empirical results showed that the ongoing and completed construction of luxury housing had spillover effects on housing prices. The effect of ongoing construction of luxury housing was particularly large in scope, indicating its role as a predictor of psychological reaction in the market. |
| first_indexed | 2024-12-17T03:47:45Z |
| format | Article |
| id | doaj.art-960fbbcc69bf4d3f8c8285f921f7a079 |
| institution | Directory Open Access Journal |
| issn | 1648-715X 1648-9179 |
| language | English |
| last_indexed | 2024-12-17T03:47:45Z |
| publishDate | 2020-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | International Journal of Strategic Property Management |
| spelling | doaj.art-960fbbcc69bf4d3f8c8285f921f7a0792022-12-21T22:04:51ZengVilnius Gediminas Technical UniversityInternational Journal of Strategic Property Management1648-715X1648-91792020-12-0124645647310.3846/ijspm.2020.1364913649The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences methodChih-Min Liang0Chun-Chang Lee1You-Hsin Lin2Zheng Yu3Wen-Chih Yeh4Department of Public Finance and Tax Administration, National Taipei University of Business, Taipei, Taiwan Department of Real Estate Management, National Pingtung University, Pingtung, Taiwan Department of Real Estate Management, National Pingtung University, Pingtung, Taiwan Department of Real Estate Management, National Pingtung University, Pingtung, Taiwan Department of Real Estate Management, National Pingtung University, Pingtung, Taiwan; Department of Real Estate Management, HungKuo Delin University of Technology, New Taipei, Taiwan This study investigated the spatial spillover effects of luxury housing during and after construction, in regards to increases in housing prices in neighboring areas as well as the spatial dependence of neighboring housing. This study focused on already completed luxury housing in Taipei, Taiwan. First, the nearest-neighbor matching approach of propensity score matching was used to overcome the problem of data heterogeneity. The difference-in-differences (DD) method and spatial econometrics were used for analysis. The empirical results indicated that the spatial error model had the best goodness of fit. This indicated that housing prices increased by 13.0% during construction of luxury housing nearby. This indicated that housing prices increased by 5.8% after the construction of luxury housing nearby. The empirical results showed that the ongoing and completed construction of luxury housing had spillover effects on housing prices. The effect of ongoing construction of luxury housing was particularly large in scope, indicating its role as a predictor of psychological reaction in the market.https://journals.vgtu.lt/index.php/IJSPM/article/view/13649luxury housingpropensity score matchingdifference-in-differencesspatial dependencespatial lag modelspatial error model |
| spellingShingle | Chih-Min Liang Chun-Chang Lee You-Hsin Lin Zheng Yu Wen-Chih Yeh The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method International Journal of Strategic Property Management luxury housing propensity score matching difference-in-differences spatial dependence spatial lag model spatial error model |
| title | The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method |
| title_full | The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method |
| title_fullStr | The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method |
| title_full_unstemmed | The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method |
| title_short | The impact of luxury housing on neighborhood housing prices: an application of the spatial difference-in-differences method |
| title_sort | impact of luxury housing on neighborhood housing prices an application of the spatial difference in differences method |
| topic | luxury housing propensity score matching difference-in-differences spatial dependence spatial lag model spatial error model |
| url | https://journals.vgtu.lt/index.php/IJSPM/article/view/13649 |
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