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

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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