The interaction of land markets and housing markets in a spatial context : a case study of Helsinki
Peltola, Risto
The purpose of the paper is to increase our understanding on how land markets and housing markets interact in a spatial context. The term housing land supply chain is used to comprise development land, housing lot and house markets. Hedonic models are estimated for each based on a large good quality dataset. Two concepts are used to measure price ratios in the housing land supply chain: (1) the land share of a house price and (2) a ratio of development land price to lot price. The paper combines housing economics and spatial analysis. Hedonic models produce a trend surface, and residuals are mapped to reveal the local effects. Thematic maps are used to visualize the spatial structure of error terms. Two scales are used: grid level to get an overview, and transaction level for exact local effects. The paper tries to offer a broad, deep and transparent view of the housing market. The data consists of more than 45.000 transactions during the last 21 years in Helsinki metropolitan area. The results may be valuable in property valuation and management of housing policy.
Event: XXIII International FIG Congress : Shaping the change
Only personal, non-commercial use of this document is allowed.