IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i2p166-d729656.html
   My bibliography  Save this article

Will Good Service Quality Promote Real Estate Value? Evidence from Beijing, China

Author

Listed:
  • Fangyuan Liu

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China
    National Academy of Economics and Trade for Forestry and Grassland, Beijing Forestry University, Beijing 100083, China)

  • Kaili Chen

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China
    National Academy of Economics and Trade for Forestry and Grassland, Beijing Forestry University, Beijing 100083, China)

  • Tianzheng Zhang

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China
    National Academy of Economics and Trade for Forestry and Grassland, Beijing Forestry University, Beijing 100083, China)

  • Yingjie Zhang

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China
    National Academy of Economics and Trade for Forestry and Grassland, Beijing Forestry University, Beijing 100083, China)

  • Yan Song

    (The Department of City and Regional Planning, University of North Carolina, Chapel Hill, NC 27599, USA)

Abstract

In the field of land use and urban management, real estate value-added issues have attracted much attention. Previous studies mainly focused on the premium of basic public services (such as infrastructure) in real estate value. As an important part of urban management, the contribution of property service is often underestimated. Few empirical studies mentioned the potential contribution of property service quality. Based on this, this paper aims to confirm and quantitatively evaluate the premium of good service quality in real estate value utilizing 155,845 samples of housing resale transactions in Beijing from 2012 to 2019. Furthermore, we also explore the dynamics and heterogeneity of the above premium. Our results show the following: Firstly, good service quality does show premium in real estate value, and the higher the service quality, the greater the premium in housing price. Secondly, this premium keeps increasing during our study period. With urbanization and rising incomes of residents, property service is increasingly important. Thirdly, the contribution of service quality to real estate value is greater when serviced houses have a higher price or larger area, are relatively newer, or further away from the city center. The findings of this current research not only deepen our understanding of service quality’s premium in real estate value, but also provide implications for urban management.

Suggested Citation

  • Fangyuan Liu & Kaili Chen & Tianzheng Zhang & Yingjie Zhang & Yan Song, 2022. "Will Good Service Quality Promote Real Estate Value? Evidence from Beijing, China," Land, MDPI, vol. 11(2), pages 1-18, January.
  • Handle: RePEc:gam:jlands:v:11:y:2022:i:2:p:166-:d:729656
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/2/166/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-445X/11/2/166/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tan Teck‐Hong, 2011. "Neighborhood preferences of house buyers: the case of Klang Valley, Malaysia," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 4(1), pages 58-69, March.
    2. Cervero, Robert & Kang, Chang Deok, 2011. "Bus rapid transit impacts on land uses and land values in Seoul, Korea," Transport Policy, Elsevier, vol. 18(1), pages 102-116, January.
    3. Hanbing Yang & Meichen Fu & Li Wang & Feng Tang, 2021. "Mixed Land Use Evaluation and Its Impact on Housing Prices in Beijing Based on Multi-Source Big Data," Land, MDPI, vol. 10(10), pages 1-21, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shenglin Ben & He Zhu & Jiajun Lu & Renfeng Wang, 2023. "Valuing the Accessibility of Green Spaces in the Housing Market: A Spatial Hedonic Analysis in Shanghai, China," Land, MDPI, vol. 12(9), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Xueli & Jiang, Chunxia & Wang, Feng & Yao, Shujie, 2021. "The impact of high-speed railway on urban housing prices in China: A network accessibility perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 84-99.
    2. Chinmoy Ghosh & Venkatesh Panchapagesan & Madalasa Venkataraman, 2024. "On the Impact of Infrastructure Improvement on Real Estate Property Values: Evidence from a Quasi-natural Experiment in an Emerging Market," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 103-137, January.
    3. Kheir, Nasr & Portnov, Boris A., 2024. "Land market segmentation along ethnic lines: Four urban localities in Israel as a case study," Land Use Policy, Elsevier, vol. 136(C).
    4. Ahmad Adeel & Bruno Notteboom & Ansar Yasar & Kris Scheerlinck & Jeroen Stevens, 2021. "Insights into the Impacts of Mega Transport Infrastructures on the Transformation of Urban Fabric: Case of BRT Lahore," Sustainability, MDPI, vol. 13(13), pages 1-32, July.
    5. Pasha, Obed & Wyczalkowski, Chris & Sohrabian, Dro & Lendel, Iryna, 2020. "Transit effects on poverty, employment, and rent in Cuyahoga County, Ohio," Transport Policy, Elsevier, vol. 88(C), pages 33-41.
    6. Ahmad Adeel & Bruno Notteboom & Ansar Yasar & Kris Scheerlinck & Jeroen Stevens, 2021. "Sustainable Streetscape and Built Environment Designs around BRT Stations: A Stated Choice Experiment Using 3D Visualizations," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    7. Guerra, Erick & Cervero, Robert & Tischler, Daniel, 2011. "The Half-Mile Circle: Does It Represent Transit Station Catchments?," University of California Transportation Center, Working Papers qt0d84c2f4, University of California Transportation Center.
    8. Qing Shen & Simin Xu & Jiang Lin, 2018. "Effects of bus transit-oriented development (BTOD) on single-family property value in Seattle metropolitan area," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2960-2979, October.
    9. Beaudoin, Justin & Tyndall, Justin, 2023. "The effect of bus rapid transit on local home prices," Research in Transportation Economics, Elsevier, vol. 102(C).
    10. Jingming Liu & Xianhui Hou & Chuyu Xia & Xiang Kang & Yujun Zhou, 2021. "Examining the Spatial Coordination between Metrorail Accessibility and Urban Spatial Form in the Context of Big Data," Land, MDPI, vol. 10(6), pages 1-20, May.
    11. Muhammad Aamir Basheer & Luuk Boelens & Rob van der Bijl, 2020. "Bus Rapid Transit System: A Study of Sustainable Land-Use Transformation, Urban Density and Economic Impacts," Sustainability, MDPI, vol. 12(8), pages 1-22, April.
    12. Papon, Francis & Nguyen-Luong, Dany & Boucq, Elise, 2015. "Should any new light rail line provide real estate gains, or not? The case of the T3 line in Paris," Research in Transportation Economics, Elsevier, vol. 49(C), pages 43-54.
    13. De Vos, Jonas & Van Acker, Veronique & Witlox, Frank, 2014. "The influence of attitudes on Transit-Oriented Development: An explorative analysis," Transport Policy, Elsevier, vol. 35(C), pages 326-329.
    14. Tobias Pfutze & Carlos Rodríguez-Castelán & Daniel Valderrama, 2023. "Urban transport infrastructure and household welfare: evidence from Colombia," Empirical Economics, Springer, vol. 65(3), pages 1409-1432, September.
    15. He, Sylvia Y., 2020. "Regional impact of rail network accessibility on residential property price: Modelling spatial heterogeneous capitalisation effects in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 244-263.
    16. Deng, Taotao & Ma, Mulan & Nelson, John D., 2016. "Measuring the impacts of Bus Rapid Transit on residential property values: The Beijing case," Research in Transportation Economics, Elsevier, vol. 60(C), pages 54-61.
    17. Hao Wu & David Levinson, 2020. "Unifying Access," Working Papers 2022-01, University of Minnesota: Nexus Research Group.
    18. Yunes Almansoub & Ming Zhong & Asif Raza & Muhammad Safdar & Abdelghani Dahou & Mohammed A. A. Al-qaness, 2022. "Exploring the Effects of Transportation Supply on Mixed Land-Use at the Parcel Level," Land, MDPI, vol. 11(6), pages 1-28, May.
    19. Dubé, Jean & Andrianary, Eugénie & Assad-Déry, François & Poupart, Janie & Simard, Justine, 2018. "Exploring difference in value uplift resulting from new bus rapid transit routes within a medium size metropolitan area," Journal of Transport Geography, Elsevier, vol. 72(C), pages 258-269.
    20. Helen X. H. Bao & Doris Ka Chuen Mok, 2020. "A Link between East and West: How the Guangzhou-Shenzhen-Hong Kong Express Rail Link Affects Property Prices in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 993-1021.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:11:y:2022:i:2:p:166-:d:729656. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.