Assessing the economic premium of additional elevator: PSM hedonic analysis in Beijing, China
Abstract
Although many Chinese cities have made remarkable progress in promoting age-friendly housings, few empirical studies related to the premium price of housings with additional elevators installed have been reported. In this study, we constructed propensity score matching–hedonic price models as well as quantile–hedonic models to assess the impact of adding elevators on housing prices. This study concludes: (1) The impact of additional elevators on housing prices varies depending on the floor level. (2) Single-facing and older housings are more likely to be negatively affected by the addition of elevators, and this interaction increases with floor level. (3) Adding an elevator reduces the price of low-priced housings on low floors and raises the price of high-priced housings on low floors, while for middle-floor and high-floor housings, the premium increases with the price of the housing. (4) Compared with the commercial community housings, the elevator premium of the affordable community housings is higher. Our findings provide an important reference for local governments to formulate appropriate charging and compensation mechanisms for adding elevators to multistory housings to promote retrofitting of aging communities.
Keyword : age-friendly retrofit, additional elevator, housing price, floor level, affordable community
How to Cite
Zhang, Z., Mao, Y., Shui, Y., & Deng, R. (2024). Assessing the economic premium of additional elevator: PSM hedonic analysis in Beijing, China. International Journal of Strategic Property Management, 28(6), 381–392. https://doi.org/10.3846/ijspm.2024.22606
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Li, X., Chen, W. Y., Cho, F. H. T., & Lafortezza, R. (2021). Bringing the vertical dimension into a planar multilevel autoregressive model: A city-level hedonic analysis of homebuyers’ utilities and urban river attributes. Science of the Total Environment, 772, Article 145547. https://doi.org/10.1016/j.scitotenv.2021.145547
Liu, X., & Sun, Y. (2019). Research on the coast-sharing compensation of old residential buildings with elevator. Mathematics in Practice and Theory, 49, 114–121.
Liu, Z., Zhao, H., Li, S., Chen, Y., & Yao, E. (2022). Understanding evolution process of community-embedded elderly care facilities with big data: A spatiotemporal analytical framework. Transactions in Urban Data, Science, and Technology, 1, 142–163. https://doi.org/10.1177/27541231221136406
Lu, J. (2018). The value of a south-facing orientation: A hedonic pricing analysis of the Shanghai housing market. Habitat International, 81, 24–32. https://doi.org/10.1016/j.habitatint.2018.09.002
Lyu, Y., Forsyth, A., & Worthington, S. (2021). Built environment and self-rated health: Comparing young, middle-aged, and older people in Chengdu, China. HERD: Health Environments Research & Design Journal, 14, 229–246. https://doi.org/10.1177/1937586720982566
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Ma, Z., Li, C., & Zhang, J. (2018). Affordable housing brings about socio-spatial exclusion in Changchun, China: Explanation in various economic motivations of local governments. Habitat International, 76, 40–47. https://doi.org/10.1016/j.habitatint.2018.05.003
Maloutas, T., & Botton, H. (2023). Vertical micro-segregation: Is living in disadvantageous lower floors in Athens’ apartment blocks producing negative social effects? Housing Studies, 38(10), 1955–1972. https://doi.org/10.1080/02673037.2021.2014414
Malpezzi, S. (2002). Hedonic pricing models: A selective and applied review. Wisconsin-Madison CULER Working Papers, 10, 67–89. https://doi.org/10.1002/9780470690680.ch5
Ning, C. (2014). Theoretical analysis of the cost-sharing compensation scheme for the addition of elevators to existing residence. Urban Problems, 5, 44–48. https://doi.org/10.13239/j.bjsshkxy.cswt.140508
Tsai, I.-C. (2022). Value capitalization effects of green buildings: A new insight through time trends and differences in various price levels. Building and Environment, 224, Article 109577. https://doi.org/10.1016/j.buildenv.2022.109577
Wang, J., & Li, G. (2022). Pursuing educational equality and divergence in the housing market: How do educational equality policies affect housing prices in Shanghai? Cities, 131, Article 104001. https://doi.org/10.1016/j.cities.2022.104001
Wen, H., Gui, Z., Zhang, L., & Hui, E. C. M. (2020). An empirical study of the impact of vehicular traffic and floor level on property price. Habitat International, 97, Article 102132. https://doi.org/10.1016/j.habitatint.2020.102132
Wen, H., Li, S., Hui, E. C. M., Jia, S., & Cui, W. (2021). Purchase motivation, landscape preference, and housing prices: Quantile hedonic analysis in Guangzhou, China. Journal of Urban Planning and Development, 147, Article 04021033. https://doi.org/10.1061/(ASCE)UP.1943-5444.0000734
Wen, H., Li, S., Hui, E. C. M., Jia, S., & Li, X. (2022). What accounts for the migrant–native housing price distribution gap? Unconditional quantile decomposition analysis in Guangzhou, China. Habitat International, 128, Article 102666. https://doi.org/10.1016/j.habitatint.2022.102666
Wen, H., Xiao, Y., & Hui, E. C. M. (2019). Quantile effect of educational facilities on housing price: Do homebuyers of higher-priced housing pay more for educational resources? Cities, 90, 100–112. https://doi.org/10.1016/j.cities.2019.01.019
Wu, H., & Ouyang, P. (2017). Fall prevalence, time trend and its related risk factors among elderly people in China. Archives of Gerontology and Geriatrics, 73, 294–299. https://doi.org/10.1016/j.archger.2017.08.009
Xiao, Y., Hui, E. C. M., & Wen, H. (2019). Effects of floor level and landscape proximity on housing price: A hedonic analysis in Hangzhou, China. Habitat International, 87, 11–26. https://doi.org/10.1016/j.habitatint.2019.03.008
Yang, X., & Li, H. (2023). Community attachment in the context of urban settlement regeneration: Mediating role of resident interaction. Cities, 140, Article 104398. https://doi.org/10.1016/j.cities.2023.104398
Yang, Z., Yi, C., Zhang, W., & Zhang, C. (2014). Affordability of housing and accessibility of public services: Evaluation of housing programs in Beijing. Journal of Housing and the Built Environment, 29, 521–540. https://doi.org/10.1007/s10901-013-9363-4
Yu, Y., Chen, Z., Bu, J., & Zhang, Q. (2020). Do stairs inhibit seniors who live on upper floors from going out? HERD: Health Environments Research & Design Journal, 13, 128–143. https://doi.org/10.1177/1937586720936588
Zhang, L., Zhou, J., Hui, E. C. M., & Wen, H. (2019). The effects of a shopping mall on housing prices: A case study in Hangzhou. International Journal of Strategic Property Management, 23, 65–80. https://doi.org/10.3846/ijspm.2019.6360
Belcher, R. N., & Chisholm, R. A. (2018). Tropical vegetation and residential property value: A hedonic pricing analysis in Singapore. Ecological Economics, 149, 149–159. https://doi.org/10.1016/j.ecolecon.2018.03.012
Cai, Y., & Gao, J. (2022). Unearthing the value of wet markets from urban housing prices: Evidence from Beijing, China. Habitat International, 122, Article 102532. https://doi.org/10.1016/j.habitatint.2022.102532
Chau, K., Ma, V., & Ho, D. (2001). The pricing of ‘luckiness’ in the apartment market. Journal of Real Estate Literature, 9, 29–40. https://doi.org/10.1080/10835547.2001.12090095
Chen, Q., Zhang, Z., Mao, Y., Deng, R., Shui, Y., Wang, K., & Hu, Y. (2023). Investigating the influence of age-friendly community infrastructure facilities on the health of the elderly in China. Buildings, 13, Article 341. https://doi.org/10.3390/buildings13020341
Chen, Y.-H., Peng, C.-W., & Yang, C.-H. (2022). Vertical housing price gradient and ground floor premium in Taipei City. International Real Estate Review, 25, 199–216. https://doi.org/10.53383/100340
Conroy, S., Narwold, A., & Sandy, J. (2013). The value of a floor: Valuing floor level in high‐rise condominiums in San Diego. International Journal of Housing Markets and Analysis, 6, 197–208. https://doi.org/10.1108/IJHMA-01-2012-0003
Dai, X., Li, Z., Ma, L., & Jin, J. (2022). The spatio-temporal pattern and spatial effect of installation of lifts in old residential buildings: Evidence from Hangzhou in China. Land, 11, Article 1600. https://doi.org/10.3390/land11091600
Fleming, D., Grimes, A., Lebreton, L., Maré, D., & Nunns, P. (2018). Valuing sunshine. Regional Science and Urban Economics, 68, 268–276. https://doi.org/10.1016/j.regsciurbeco.2017.11.008
Gao, L., Zhao, C., & Mei, Y. (2022). Assessing the economic premium of electric vehicle charging points: A hedonic price analysis in Beijing, China. Environmental Science and Pollution Research, 29, 84546–84561. https://doi.org/10.1007/s11356-022-21735-4
Gu, T., Yuan, J., Li, L., Shao, Q., & Zheng, C. (2020). Demand for community-based care services and its influencing factors among the elderly in affordable housing communities: A case study in Nanjing City. BMC Health Services Research, 20, Article 241. https://doi.org/10.1186/s12913-020-5067-0
Guo, B., Zhang, L., & Li, Y. (2019). Research on the path of residents’ willingness to upgrade by installing elevators in old residential quarters based on safety precautions. Safety Science, 118, 389–396. https://doi.org/10.1016/j.ssci.2019.05.038
Higgins, C. D. (2019). A 4D spatio-temporal approach to modelling land value uplift from rapid transit in high density and topographically-rich cities. Landscape and Urban Planning, 185, 68–82. https://doi.org/10.1016/j.landurbplan.2018.12.011
Hui, E. C. M., Liang, C., & Yip, T. L. (2018). Impact of semi-obnoxious facilities and urban renewal strategy on subdivided units. Applied Geography, 91, 144–155. https://doi.org/10.1016/j.apgeog.2017.12.020
Hui, E. C. M., Zhong, J. W., & Yu, K. H. (2012). The impact of landscape views and storey levels on property prices. Landscape and Urban Planning, 105, 86–93. https://doi.org/10.1016/j.landurbplan.2011.12.002
Hwang, S. I. M., & Ma, L. (2023). Top-floor discounts in residential buildings: Evidence from South Korea. Real Estate Economics, 51, 441–469. https://doi.org/10.1111/1540-6229.12409
Jia, S., Cai, D., & Shi, J. (2014). A study of micro-space differentiation on high-rise residential prices. In ICCREM 2014 (pp. 1097–1105). American Society of Civil Engineers. https://doi.org/10.1061/9780784413777.130
Khiew, D. N. C., & Lee, C. G. (2019). Floor-level premiums in private housing: The case of condominiums in Singapore. Applied Economics Letters, 26, 436–439. https://doi.org/10.1080/13504851.2018.1486971
Lai, P.-C., Low, C.-T., Tse, W.-S. C., Tsui, C.-K., Lee, H., & Hui, P.-K. (2013). Risk of tuberculosis in high-rise and high density dwellings: An exploratory spatial analysis. Environmental Pollution, 183, 40–45. https://doi.org/10.1016/j.envpol.2012.11.025
Lai, Y., Zheng, X., Choy, L. H. T., & Wang, J. (2017). Property rights and housing prices: An empirical study of small property rights housing in Shenzhen, China. Land Use Policy, 68, 429–437. https://doi.org/10.1016/j.landusepol.2017.08.010
Li, X., Chen, W. Y., Cho, F. H. T., & Lafortezza, R. (2021). Bringing the vertical dimension into a planar multilevel autoregressive model: A city-level hedonic analysis of homebuyers’ utilities and urban river attributes. Science of the Total Environment, 772, Article 145547. https://doi.org/10.1016/j.scitotenv.2021.145547
Liu, X., & Sun, Y. (2019). Research on the coast-sharing compensation of old residential buildings with elevator. Mathematics in Practice and Theory, 49, 114–121.
Liu, Z., Zhao, H., Li, S., Chen, Y., & Yao, E. (2022). Understanding evolution process of community-embedded elderly care facilities with big data: A spatiotemporal analytical framework. Transactions in Urban Data, Science, and Technology, 1, 142–163. https://doi.org/10.1177/27541231221136406
Lu, J. (2018). The value of a south-facing orientation: A hedonic pricing analysis of the Shanghai housing market. Habitat International, 81, 24–32. https://doi.org/10.1016/j.habitatint.2018.09.002
Lyu, Y., Forsyth, A., & Worthington, S. (2021). Built environment and self-rated health: Comparing young, middle-aged, and older people in Chengdu, China. HERD: Health Environments Research & Design Journal, 14, 229–246. https://doi.org/10.1177/1937586720982566
Ma, S., Li, T., & Yang, Y. (2022). Housing price appreciation effects of elevator installation in old residential areas: Empirical evidence based on a multiperiod DID model. Advances in Civil Engineering, 2022, Article e7949252. https://doi.org/10.1155/2022/7949252
Ma, Z., Li, C., & Zhang, J. (2018). Affordable housing brings about socio-spatial exclusion in Changchun, China: Explanation in various economic motivations of local governments. Habitat International, 76, 40–47. https://doi.org/10.1016/j.habitatint.2018.05.003
Maloutas, T., & Botton, H. (2023). Vertical micro-segregation: Is living in disadvantageous lower floors in Athens’ apartment blocks producing negative social effects? Housing Studies, 38(10), 1955–1972. https://doi.org/10.1080/02673037.2021.2014414
Malpezzi, S. (2002). Hedonic pricing models: A selective and applied review. Wisconsin-Madison CULER Working Papers, 10, 67–89. https://doi.org/10.1002/9780470690680.ch5
Ning, C. (2014). Theoretical analysis of the cost-sharing compensation scheme for the addition of elevators to existing residence. Urban Problems, 5, 44–48. https://doi.org/10.13239/j.bjsshkxy.cswt.140508
Tsai, I.-C. (2022). Value capitalization effects of green buildings: A new insight through time trends and differences in various price levels. Building and Environment, 224, Article 109577. https://doi.org/10.1016/j.buildenv.2022.109577
Wang, J., & Li, G. (2022). Pursuing educational equality and divergence in the housing market: How do educational equality policies affect housing prices in Shanghai? Cities, 131, Article 104001. https://doi.org/10.1016/j.cities.2022.104001
Wen, H., Gui, Z., Zhang, L., & Hui, E. C. M. (2020). An empirical study of the impact of vehicular traffic and floor level on property price. Habitat International, 97, Article 102132. https://doi.org/10.1016/j.habitatint.2020.102132
Wen, H., Li, S., Hui, E. C. M., Jia, S., & Cui, W. (2021). Purchase motivation, landscape preference, and housing prices: Quantile hedonic analysis in Guangzhou, China. Journal of Urban Planning and Development, 147, Article 04021033. https://doi.org/10.1061/(ASCE)UP.1943-5444.0000734
Wen, H., Li, S., Hui, E. C. M., Jia, S., & Li, X. (2022). What accounts for the migrant–native housing price distribution gap? Unconditional quantile decomposition analysis in Guangzhou, China. Habitat International, 128, Article 102666. https://doi.org/10.1016/j.habitatint.2022.102666
Wen, H., Xiao, Y., & Hui, E. C. M. (2019). Quantile effect of educational facilities on housing price: Do homebuyers of higher-priced housing pay more for educational resources? Cities, 90, 100–112. https://doi.org/10.1016/j.cities.2019.01.019
Wu, H., & Ouyang, P. (2017). Fall prevalence, time trend and its related risk factors among elderly people in China. Archives of Gerontology and Geriatrics, 73, 294–299. https://doi.org/10.1016/j.archger.2017.08.009
Xiao, Y., Hui, E. C. M., & Wen, H. (2019). Effects of floor level and landscape proximity on housing price: A hedonic analysis in Hangzhou, China. Habitat International, 87, 11–26. https://doi.org/10.1016/j.habitatint.2019.03.008
Yang, X., & Li, H. (2023). Community attachment in the context of urban settlement regeneration: Mediating role of resident interaction. Cities, 140, Article 104398. https://doi.org/10.1016/j.cities.2023.104398
Yang, Z., Yi, C., Zhang, W., & Zhang, C. (2014). Affordability of housing and accessibility of public services: Evaluation of housing programs in Beijing. Journal of Housing and the Built Environment, 29, 521–540. https://doi.org/10.1007/s10901-013-9363-4
Yu, Y., Chen, Z., Bu, J., & Zhang, Q. (2020). Do stairs inhibit seniors who live on upper floors from going out? HERD: Health Environments Research & Design Journal, 13, 128–143. https://doi.org/10.1177/1937586720936588
Zhang, L., Zhou, J., Hui, E. C. M., & Wen, H. (2019). The effects of a shopping mall on housing prices: A case study in Hangzhou. International Journal of Strategic Property Management, 23, 65–80. https://doi.org/10.3846/ijspm.2019.6360