The Impact of Luxury Housing on Neighborhood Housing Prices in Taipei City
Cheng-Huang Tung and
Additional contact information
Chun-Chang Lee: Professor, Department of Real Estate Management, National Pingtung University, Taiwan No. 51, Mingsheng East Road, Pingtung, Taiwan
Chih-Min Liang: Associate professor, Department of Public Finance and Tax Administration, National Taipei University of Business, Taiwan
Cheng-Huang Tung: Associate professor, Department of Computer Science and Information Engineering, National Pingtung University, Taiwan
Yu-Jian Lu: Department of Real Estate Management, National Pingtung University, Taiwan No. 51, Mingsheng East Road, Pingtung, Taiwan
Asian Economic and Financial Review, 2018, vol. 8, issue 10, 1211-1225
This study investigated whether a decision to construct luxury housing can help increase neighborhood housing prices. The difference-in-difference method was used in the analysis. Housing transaction data from 2008 to 2011 were used in the analysis. According to the empirical results, after eliminating the common growth in prices (10.6%) between the neighborhood in which luxury housing was to be built and the other non-luxury neighborhood, the real gap in the housing prices caused by the luxury housing was 11.2%. This suggests that luxury housing has spillover effects on neighborhood housing prices and, specifically, can help to increase neighborhood housing prices. Furthermore, the results showed that housing prices in the neighborhood in which the luxury housing was to be built were inversely proportional to the distance from the luxury housing.
Keywords: Luxury housing; Difference-in-difference method; Housing price; Spillover effects; Geographic information system; Taipei City. (search for similar items in EconPapers)
JEL-codes: C2 C21 L85 O18 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:2018:p:1211-1225
Access Statistics for this article
Asian Economic and Financial Review is currently edited by Dr. Qazi Muhammad Adnan Hye
More articles in Asian Economic and Financial Review from Asian Economic and Social Society Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Qazi Muhammad Imran ().