Assessing the spatial impact of policy interventions on real-estate values

An exemplar of the use of the hybrid hedonic/repeat-sales method

Chris Leishman, Craig Watkins

Research output: Contribution to journalArticle

Abstract

This paper sets out to make a contribution to the extensive literature that seeks to develop methods that allow rigorous and robust analysis of the spatial and temporal impacts of public policy interventions on property (real-estate) values. It argues that the hybrid repeat-sales/hedonic method developed in real-estate studies over the last 30 years has considerable, but as yet under-developed, potential as a policy analysis tool. Using data from Glasgow, UK, the empirical analysis illustrates how the technique can be used to understand the spatial spillovers and the dynamic temporal effects of a historic £100 million state-led, area-based, urban-renewal programme, New Life for Urban Scotland. The paper concludes by arguing that, with the rise in the availability of rich geocoded, micro-datasets, this framework is sufficiently flexible to be used to evaluate the real-estate market impacts of a wide range of public policy interventions. Significantly, as the case study demonstrates, the framework overcomes some of the sustained criticisms of the more commonly used hedonic modelling approach. There is, however, still much to do to enhance the technical qualities of the models through further application.

Original languageEnglish
Pages (from-to)202-217
Number of pages16
JournalRegional Studies, Regional Science
Volume4
Issue number1
Early online date29 Aug 2017
DOIs
Publication statusPublished - 2017

Fingerprint

real estate
sales
urban renewal
policy analysis
public policy
empirical analysis
Values
real estate market
market
criticism
modeling
policy
method
public
Real estate
Repeat sales
Public policy
Policy intervention
effect
programme

Keywords

  • House prices
  • Policy evaluation
  • Price indices
  • Urban regeneration

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Sociology and Political Science
  • Economics and Econometrics

Cite this

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Assessing the spatial impact of policy interventions on real-estate values : An exemplar of the use of the hybrid hedonic/repeat-sales method. / Leishman, Chris; Watkins, Craig.

In: Regional Studies, Regional Science, Vol. 4, No. 1, 2017, p. 202-217.

Research output: Contribution to journalArticle

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