Influential Factors on the Market Value of Residential Properties

Abstract

When using sales comparison approach, it is crucial to apply adjustments based on the differences between the appraised and comparable properties. Estimating the significance of each adjustment is of key importance for performing credible valuation. Adjustments should include factors such as location, physical and functional characteristics of residential properties and external influential factors. The aim of the article is to determine importance of influential factors and to quantify adjustments that arise from selected factors. Analytical results about the importance of factors influencing the appraised value of residential properties as perceived by different experts are presented in the empirical part of the article. The following factors were included in the study: orientation, views from the property, noise, number of storeys, and the age of the building. Data needed in the study were collected through interviews with authorised real estate appraisers, court sworn appraisers and real property agents. The key scientific problem was to determine mathematical functions for adjustment that arise from the storey of an apartment and from the age of the building. The findings of the study indicate that the location in relation to the distance from the city centre is the most important influential factor on the property value, similarly as in other countries across the world. Furthermore, the survey results show that the impact of the views and noise on the residential property value in Slovenia is also comparable with other studies. Results on the quantification of adjustments expectedly show that prices rise per storey in case there is an elevator in the building, but the result is opposite in case there is no elevator in the building. Results also show the influence of age on the value of the building. Based on mean values a linear function of annual depreciation rate has been set, which is the key novelty of the research. This function and the adjustments presented in the article are usable in valuation practice.

The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China

“…Residential property value is a complicated composition that is influenced by many factors [1,61,62]. Under the framework of hedonic pricing theory, housing characteristics are generally classified into the following three categories: a structure characteristic, neighborhood characteristic, and location characteristic [63,64].…”

Faktor-faktor penentu harga rumah dari perspektif pemaju perumahan

“…17576/geo-2019-1504-18 251 i) Faktor jarak atau lokasi Jarak atau lokasi merupakan salah satu aspek yang mempengaruhi perletakan harga rumah. Ini adalah kerana jarak di bandar-bandar besar antara pusat bandar dan pinggir bandar dilihat mampu mempengaruhi harga (Ferlan, Bastic & Psunder, 2017 ii) Persekitaran Sosial Persekitaran sosial juga merupakan salah satu aspek yang mempengaruhi peletakan harga rumah.Ini adalah kerana persekitaran seperti budaya, agama, elemen kemanusiaan, alam sekitar dan lain-lain lagi turut mempengaruhi harga rumah (Stapa & Yusuf, 2012). Jadual 2 jelas menunjukkan bahawa perumahan yang didominasi oleh sesuatu suku kaum tidak boleh mempengaruhi faktor perletakan harga rumah kerana kebanyakan responden tidak setuju dengan penyataan ini.…”

“…Pembelian rumah di kawasan bandar juga akan mempengaruhi mempengaruhi peletakan harga rumah oleh pemaju apabila sebanyak 47.4% (36) responden setuju bahawa kawasan bandar akan mempengaruhi peletakan harga rumah manakala hanya 6.6% (5) responden tidak pasti dengan penyataan ini. Ferlan, Bastic & Psunder (2017), menjelaskan bahawa faktor jarak dari pusat bandaraya juga mempengaruhi harga perumahan oleh pemaju. Seterusnya dalam potensi kemajuan akan datang di kawasan perumahan mempengaruhi harga rumah telah mendapat peratusan sebanyak 44.7% (34).…”

Location tendencies in developer investments in the residential market in Łódź

“…• the environment and access to recreational areas, • access to education, • access to services and health care, • access to communication networks, • proximity to the workplace (Aluko 2011), • availability of parking spaces (Ferlan, Bastic and Psunder 2017). A prized location for housing is, for example, a neighbourhood with green areas: parks, open spaces.…”

“…The further from the centre, the lower the number of transport links and frequency of public transport. The availability of parking spaces or the possibility of creating them can also be of great importance to the location of housing investments (Ferlan, Bastic and Psunder 2017). The presented approaches refer in particular to factors affecting the value of given real estate, which may translate into the decisions of potential buyers to purchase.…”