The purpose of this paper is to develop the concept of a housing market area, thereby provide insights into our understanding of the sub-regional structures of the housing system and hence propose a framework for strategic planning research in the housing market. To tackle this task, it is first necessary to consider the criteria for a local housing market area. The paper begins by reviewing previous definitions by both academics and planners, and their underlying assumptions. Based on the principle of spatial arbitrage, a local housing market area is defined by reference to criteria linked to migration self-containment. Parallels are drawn with the principles that have been applied to define a system of spatial labour markets using travel-to-work areas. This spatial arbitrage definition is tested empirically by developing a system of housing market areas for west central Scotland using data derived from the Land Registry. Finally, the paper draws together the empirical findings to discuss the nature of spatial housing markets and the implications for strategic planning. It argues that the establishment of a geography of functional housing market areas represents the first step in the development of systematic planning research.
The authors would like to extend their thanks to Ryden, Property Consultants and Chartered Surveyors, Edinburgh, and Scottish Property Network, University of Paisley, for their data input and co-operation. JPVI 16,3 298 penultimate section we discuss our empirical analysis. The final section highlights the key findings and discusses areas for further research. Principal determinants of office rent valuesAn office property as a heterogeneous good can be defined by a vector of characteristics or attributes which relate to its physical accommodation, location and tenure rights. The attributes in turn can be subdivided into the following categories:Physical accommodation Capacity: At its most basic this is the floor area of the office, although it will also be influenced by any constraints, for example a cellular layout, the building's structure places on design and layout. Modern offices normally provide the greatest flexibility in this regard by the provision of large floor plates.Internal accessibility: The significance of which floor an office suite is on is likely to be affected by the availability and the quality of a lift. Basements may also not be popular because of natural lighting difficulties. The existence of a reception area is usually an attractive feature.Internal services: The quality of office space is not easy to define. There is a considerable range of potential internal services which add value although to different degrees. These include air conditioning/heating, raised floors to enable computer and telephone cables, security systems, lighting, internal sound insulation, cooking, toilet and washing facilities and carpeting. The British Council for Offices(1994) prescribes detailed ideal specifications for which a potential occupier is likely to pay a premium.Physical structure: The cladding and standard of the exterior and structure are important both to the image the occupier is trying to project, and to subsequent repair and maintenance expenditure. Double glazing also improves the internal working environment. A major influence is the age of the building, for example prewar buildings are mainly of solid construction with a large number of load-bearing walls. In the case of older offices, whether they have been refurbished is a key attribute. The provision of internal car parking spaces is an added attraction to an occupier. Location Spatial relationships:The choice of an office also brings a set of spatial relationships. Within a central business district (CBD) key relationships determining rental value could be distance from the most prestigious office addresses (see below), proximity to the intercity train station, links with commuter train and bus networks, or closeness to the main shopping centre.Business environment: The CBD provides agglomeration economies by giving access to a common pool of services and labour. Despite the advances in information technology, and the subsequent changes in office practice, the CBD
In the 1950s and 1960s a group of housing economists at ColumbiaUniversity developed a framework for the analyses of urban housing markets which was based around the concept of housing submarkets and household migration. There is now widespread agreement amongst housing economists that submarkets should be adopted as a working hypothesis but the concept has been reformulated in terms of intra-urban relative house price differentials. The accepted test for submarket existence uses a hedonic model of house prices which assumes market equilibrium. This paper returns to an analysis of submarkets which focuses on spatial migration patterns. By examining household intra-urban mobility patterns in the Glasgow housing market it is possible to demonstrate that submarkets tend to be self-contained. The analysis also suggests that the current standard statistical tests may be incomplete and in the case of Glasgow underestimate the number of submarkets.
No abstract
This paper addresses the structural change in a local urban housing market within a submarket framework. There is a voluminous literature examining the economic structure and operation of urban housing submarkets, with much of the associated empirical work based on static cross-sectional studies. Analysis of the temporal dynamics of local markets has tended to be perfunctory. As such, our understanding of structural change over time remains underdeveloped. In this paper we construct repeat-sale indices at the urban submarket level and deploy cointegration analysis to examine the stability of spatially defined housing submarkets within Glasgow between 1984 and 1997. Specifically, we consider whether price differences between submarkets have been eroded by a process of arbitrage operating through supply-side responses and/or migration flows. The empirical analysis shows that a stable system of housing submarkets persists throughout the study period.
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