The effect of perpetual usufruct on single-family houses in Poznań

Information
Title: The effect of perpetual usufruct on single-family houses in Poznań
Issue: Vol. 12, No 3, 2019
Published date: 09-2019 (print) / 09-2019 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Radosław Trojanek
Poznań University of Economics and Business

Justyna Tanaś
University of Gdańsk

Maria Trojanek
WSB University in Poznań
Keywords: ground lease, perpetual usufruct, house prices
DOI: 10.14254/2071-8330.2019/12-3/17
DOAJ: https://doaj.org/article/b058a63f63554170b21db28e84ee68a9
Language: English
Pages: 212-221 (10)
JEL classification: R31
Website: https://www.jois.eu/?547,en_the-effect-of-perpetual-usufruct-on-single-family-house-prices-in-poznan
File https://www.jois.eu/files/17_838_Trojanek%20et%20al.pdf
Licenses:
Abstract

The paper explores the influence of the perpetual usufruct (a form of owning the ground similar to a long-term lease in Poland) on house prices in Poznań. The research is based on a data set of 1074 geo-coded single-family houses transactions for the years 2010 to 2015. In this research, the hedonic method was used in Ordinary Least Squares (OLS), Weighted Least Squares (WLS) and Median Quantile Regression (Median QR) models. We found substantial evidence that single-family houses constructed on perpetual usufruct lots are discounted on average at 4.1%.

Bibliography

1. Belej, M., & Kulesza, S. (2014). Similarities in Time-Series of Housing Prices on Local Markets in Poland. Real Estate Management and Valuation, 22(3), 45–53. https://doi.org/10.2478/remav-2014-0026

2. Caesar, C., Donner, H., & Kopsch, F. (2019). The impact of leasehold status on apartment price. Journal of Housing Economics, (April), 101629. https://doi.org/10.1016/j.jhe.2019.04.001

3. Cichulska, A., & Cellmer, R. (2018). Analysis of prices in the housing market using mixed models. Real Estate Management and Valuation, 26(4), 102–111. https://doi.org/10.2478/remav-2018-0040

4. Coulson, E. (2008). Hedonic Methods and Housing Markets Chapter 1: An Introduction and Discussion of Origins. Hedonic Methods and Housing Markets, 1–15.

5. Czembrowski, P., & Kronenberg, J. (2016). Hedonic pricing and different urban green space types and sizes: Insights into the discussion on valuing ecosystem services. Landscape and Urban Planning, 146, 11–19. https://doi.org/10.1016/j.landurbplan.2015.10.

6. Foryś, I., & Gaca, R. (2018). Ownership and Perpetual Usufruct in the Valuation of Undeveloped Real Property on the Example of Parallel Markets. Folia Oeconomica Stetinensia, 18(1), 7–16. https://doi.org/10.2478/foli-2018-0001

7. Gerber, J. D., Nahrath, S., & Hartmann, T. (2017). The strategic use of time-limited property rights in land-use planning: Evidence from Switzerland. Environment and Planning A, 49(7), 1684–1703. https://doi.org/10.1177/0308518X17701916

8. Głuszak, M. (2008). Użytkowanie wieczyste w kontekście rozwiązań stosowanych w wybranych krajach europejskich. Świat Nieruchomości, 68, 28–31.

9. Irumba, R. (2015). An empirical examination of the effects of land tenure on housing values in Kampala, Uganda. International Journal of Housing Markets and Analysis, 8(2), 359–374. Retrieved from http://dx.doi.org/10.1108/IJHMA-11-2014-0044

10. Koenker, R., & Bassett, G. (1978). Regression Quantiles. Econometrica, 46(1), 33. https://doi.org/10.2307/1913643

11. Koenker, R., & Hallock, K. F. (2001). Quantile Regression. Journal of Economic Perspectives, 15(4), 143–156.

12. Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132. https://doi.org/10.1086/259131

13. Liao, W. C., & Wang, X. (2012). Hedonic house prices and spatial quantile regression. Journal of Housing Economics, 21(1), 16–27. https://doi.org/10.1016/j.jhe.2011.11.001

14. Löhr, D. (2017). Sustainable housing: A ground lease partnership model. Land Use Policy, 60, 281–286. https://doi.org/10.1016/j.landusepol.2016.10.037

15. Renigier-Bilozor, M., Janowski, A., & Walacik, M. (2019). Geoscience methods in real estate market analyses subjectivity decrease. Geosciences (Switzerland), 9(3). https://doi.org/10.3390/geosciences9030130

16. Rosen, S. (1974). Hedonic Prices and Implicit Markets: Production Differentiation in Pure Competition. Hournal of Political Economy, 82(1), 34–55.

17. Sejm Rzyczypospolitej Polskiej. Law on the Economy of Land in Cities and Settlements, Pub. L. No. 159 (1961). Poland: Journal of Law.

18. Trojanek, M., Anholcer, M., Banaitis, A., & Trojanek, R. (2018). A generalised model of ground lease pricing. Sustainability (Switzerland), 10(9), 1–21. https://doi.org/10.3390/su10093203

19. Trojanek, R. (2013). An attempt to identify the seasonality of housing prices in selected polish cities in 1996-2012. Real Estate Management and Valuation, 21(4), 96–109. https://doi.org/10.2478/remav-2013-0041

20. Trojanek, R. (2016). The Impact of Green Areas on Dwelling Prices: the Case of Poznań City. Entrepreneurial Business and Economics Review, 4(2), 27–35. https://doi.org/10.15678/EBER.2016.040203

21. Trojanek, R., Gluszak, M., & Tanas, J. (2018). the Effect of Urban Green Spaces on House Prices in Warsaw. International Journal of Strategic Property Management, 22(5), 358–371. https://doi.org/10.3846/ijspm.2018.5220

22. Trojanek, R., & Huderek-Glapska, S. (2018). Measuring the noise cost of aviation – The association between the Limited Use Area around Warsaw Chopin Airport and property values. Journal of Air Transport Management, 67. https://doi.org/10.1016/j.jairtraman

23. Truszkiewicz, Z. (2006). Użytkowanie wieczyste. Zagadnienia konstrukcyjne. Zakamycze Kantor Wydawniczy.

24. Tyvimaa, T., Gibler, K. M., & Zahirovic-Herbert, V. (2015). The effect of ground leases on house prices in Helsinki. Journal of Housing and the Built Environment, 30(3), 451–470. https://doi.org/10.1007/s10901-014-9424-3

25. Zietz, J., Zietz, E. N., & Sirmans, G. S. (2008). Determinants of house prices: A quantile regression approach. Journal of Real Estate Finance and Economics, 37(4), 317–333. https://doi.org/10.1007/s11146-007-9053-7