Social Stigma and Asset Value

Gourley, Patrick

doi:10.1002/soej.12315

Cited by 6 publications

(3 citation statements)

References 33 publications

(29 reference statements)

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“…This perception will influence the decision of the homebuyers when purchasing the property. For example, houses with murder, unnatural death, haunted (Gourley, 2016), past flood incidents, landslide phenomena (Adzhar et al, 2021), and former abandoned housing projects (Ibrahim & Maimun, 2022). Therefore, if the prospective buyer becomes aware of such stigmas, they will certainly decline to purchase a property in the residential area.…”

Section: Phenomenon Stigmamentioning

confidence: 99%

Modelling Property Overhang Using Stigmatised Property Dimensions

Huri,

Ahmad Baharum,

Ting

et al. 2024

E-BPJ

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Property stigma refers to some characteristics, features, social values, or an event relating to land and buildings that can create a negative perception of a building, land, project, or neighbourhood area. Property stigma was identified as a significant factor contributing to the number of overhang residential units in Malaysia. This paper aims to develop a PLS-SEM model using stigmatized property dimensions on Clio2 Residence, an overhang strata residential scheme in Putrajaya. External and internal stigmas are significant factors causing unsold property units in Clio2 Residence.

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Section: Phenomenon Stigmamentioning

confidence: 99%

Modelling Property Overhang Using Stigmatised Property Dimensions

Huri,

Ahmad Baharum,

Ting

et al. 2024

E-BPJ

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“…Any social upheavals of a violent nature (with the characteristics just described) that take place locally, it is true that represent an adverse effect on the market of capital goods and property associated with the specific areas. The repercussions of violent social events may be physical damage, increased perceived risk and associated social stigma (Gourley, 2016). All these detrimental factors attributed to social unrest and the ensuing violence, shape people's perceptions that finally affect consumer choices.…”

Section: Introductionmentioning

confidence: 99%

Spatial Differentiation of Urban Property Prices as a Repercussion in the Aftermath of a Civil Disorder Incident: The 2011 London Case

Kourtis,

Panayiotis,

Kourtis

2020

ijfirm

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Purpose:The purpose of the paper is to explore possible consequences on property prices in areas of London, ensuing the civil unrest of 2011. Design/Methodology/Approach: We studied the repercussion of the civil unrest on real estate prices through the application a difference in differences method of analysis. The case of London was chosen due to its well-developed property market and the availability of adequate, high quality and detailed data needed for this purpose. Findings: It was found that up to one year period after the end of the unrest, the effect seems to be statistically insignificant. The findings further suggest, that during the second and third year from the end of the turmoil, the civil unrest led to an approximately 5% decline in property prices in the affected areas of London. Practical Implications: This research study is an attempt to quantify the impact of London 2011 riots on property prices. The duration of the effect reflecting people's perception regarding the risk associated with investing in these areas has not been determined. Riots combine the economic and the social impact. Originality/Value: Policy makers can better understand and estimate the repercussions of how urban economies interact with population and absorb localized ephemeral events. In that sense, it can be a vital aid in the hands of the administration in its duties to shape a more balanced and harmonic urban environment. Every shock though has its own distinct characteristics and doesn't affect the spatial dynamics in a uniform fashion across time.

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“…For example, in labor markets, workers' skills are often inferred from unemployment spells (Arulampalam, 2001;Vishwanath, 1989); similarly, when searching for a house, the time on the market may be used as a signal of house quality for home buyers (Taylor, 1999). The presence of the stigma effect contributes to a disamenity by lowering the perceived utility of goods and has a direct effect on utility rather than a change in the characteristics of the good per se (Gourley, 2019). This perceived utility of goods, based on noisy signals, may play an important role in market dynamics and liquidity.…”

Section: Stigma In Housing Marketsmentioning

confidence: 99%

Household finance and housing markets

Fang¹

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This thesis, motivated by the significance of housing in the household decisionmaking process, explores household beliefs and decisions in relation to housing. This thesis reports on empirical studies conducted using nationwide administrative data from the Netherlands. It adds new insights to the field of household finance and housing by highlighting the roles that housing plays in households' belief formation and decision-making. The main research question is How do households form beliefs and make decisions in relation to housing?Answers to this research question are provided by findings that are reported in four papers.The first paper examines the effect of house value growth on households' expectations regarding future house prices using nationally representative survey data combined with administrative registry data from the Netherlands. While household expectations can be shaped by market experience, the analysis demonstrates that households that have more positive individual experience, measured by the annualized house value return since they moved in to their current residence, have greater expectations about the future housing market growth. The findings can be explained by the heterogeneity in the recency and the informativeness of information, and the ability to utilize information.The second paper addresses buyer households' perceptions of the quality of housing given its listing history. This study aims to test for the existence of stigma effects in the sense that a house that remains unsold for a lengthy period may therefore be perceived as of low quality. Since relisting a property clears listing records and restarts the time on the market to zero, this analysis uses house relisting as a quasi-natural experiment. The findings show that a relisted house has a higher probability of a sale than a non-relisted house at any given time, ceteris paribus, which is interpreted as evidence that there are stigma effects in housing markets. v SUMMARY Given that housing generally makes up a large proportion of a household's asset portfolio, the third paper examines households' portfolio choices, in terms of holding risky financial assets, in relation to housing value growth. Using administrative data covering the Dutch population, this study reports a positive effect of housing value in terms of both the likelihood of holding any risky financial assets and the proportion of risky financial assets in total financial wealth. While we find positive effects for both homeowners and renters, a further analysis of housingstock market correlations reveals heterogeneity in their motives: diversification among homeowners and hedging among renters for holding risky financial assets as a response to changes in housing values.The fourth paper investigates the effect of parents' housing experience on their children's home-purchasing decision. Using administrative data covering the Dutch population to establish parent-child pairs, the analysis shows that higher levels of parental housing returns are correlated with an increas...

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Social Stigma and Asset Value

Cited by 6 publications

References 33 publications

Modelling Property Overhang Using Stigmatised Property Dimensions

Modelling Property Overhang Using Stigmatised Property Dimensions

Spatial Differentiation of Urban Property Prices as a Repercussion in the Aftermath of a Civil Disorder Incident: The 2011 London Case

Household finance and housing markets

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