Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments

Figures & data

Table 1. Variable names, descriptions and statistics.

Variable name	Description	Min.	Max.	Mean	SD
Price (Y)	Apartment transaction price in £ (in log form)	10.7986	12.4212	11.6304	0.3517
Age	Age of apartment in years (in log form)	1.0986	3.2189	2.2211	0.3902
Area	Area of apartment in m^2 (in log form)	3.7550	4.7877	4.2081	0.1585
Garage	Dummy variable for presence of a garage	0.0	1.0	.073	.2606
Bedrooms	Number of bedrooms in apartment	1.0	4.0	1.856	.5463
Receproom	Number of reception rooms in apartment	1.0	2.0	1.014	.1183
Floorno	Number of floors in the building where the transaction took place (building height proxy)	3.0	10.0	6.849	1.3336
Finishing	Appropriateness of exterior finishing to the surroundings	2.0	5.0	2.847	.9290
Identity	Appropriateness of building identity to the surroundings	2.0	5.0	3.363	.9725
Materialqual	Appropriateness of used material’s quality to the surroundings	1.0	4.0	2.920	.8383
Fenestration	Appropriateness of façade fenestration to the surroundings	2.0	4.0	2.698	.6934
Massing	Appropriateness of building massing to the surroundings	1.0	5.0	2.882	1.2127
Height	Appropriateness of building’s height to the surroundings	1.0	4.0	3.233	.6908
Condition	Overall building condition’s appropriateness to the surroundings	1.0	4.0	2.396	.8186
Connect	Connectivity index (as % points) (proxy for urban form accessibility) (Equation 1(1) $$\mathit{\gamma }=\frac{\#\text{nodes}-1}{3\ast \left(\#\text{nodes}-2\right)}$$(1) )	34.1270	40.0000	35.4223	1.4645
BpR	Building footprint to plot ratio (as % points) (proxy for urban density)	19.3989	93.5821	52.1273	21.8077
Attindex	Attraction index: interaction of apartment units with selected commercial node (Equation 2(2) $$\text{Attindex}=\frac{\text{FF}}{\text{centre}\_\text{area}/\text{block}\_\text{area}}\text{*}\frac{100}{\text{Dist}}$$(2) )	1.9044	13.1040	4.7481	3.0939
Dgreen	Distance to active green area (× 100 m)	2.5025	12.8848	6.6731	3.1912
NearST	Distance to the nearest train station (× 100 m)	1.6122	13.2209	6.6421	3.4878
PWdist	Distance to peace wall (in Cupar Way) (× 100 m)	7.73	23.71	16.2967	4.58017
yr2000	Transaction year dummy	0.0	1.0	.120	.3257
yr2001	Transaction year dummy	0.0	1.0	.031	.1726
yr2002	Transaction year dummy	0.0	1.0	.108	.3114
yr2003	Transaction year dummy	0.0	1.0	.116	.3201
yr2004	Transaction year dummy	0.0	1.0	.186	.3898
yr2005	Transaction year dummy	0.0	1.0	.061	.2402
yr2006	Transaction year dummy	0.0	1.0	.130	.3364
yr2007	Transaction year dummy	0.0	1.0	.101	.3022
yr2008	Transaction year dummy	0.0	1.0	.146	.3538
N		424

Table 2. Hedonic and spatial model comparisons.

Variable	Model 1 Hedonic (OLS)		Model 2 SEM (ML)		Model 3 SAR (ML)
Constant	1.5332	(1.8328)	3.0714**	(3.4862)	−1.4176	(−1.6753)
Age	−0.1312*	(−2.3588)	−0.1644**	(−3.0613)	−0.1241*	(−2.4979)
Area	0.9155*	(12.6764)	0.8427**	(12.3922)	0.8054**	(12.1854)
Garage	0.1761*	(3.6562)	0.1930**	(4.4050)	0.2111**	(4.8876)
Bedrooms	−0.0108	(−0.4963)	−0.0016	(−0.0774)	0.0083	(0.4216)
Receproom	0.1357	(1.7292)	0.1741*	(2.4100)	0.1682*	(2.3957)
Floorno	0.0594**	(3.8029)	0.0429*	(2.8552)	0.0343*	(2.3914)
Finishing	0.0823**	(2.9538)	0.0529	(1.9259)	0.0432	(1.7071)
Identity	0.1172**	(3.0372)	0.0817*	(2.1308)	0.0447	(1.2421)
Materialqual	0.3195**	(9.7516)	0.2394**	(6.1798)	0.1749**	(5.0190)
Fenestration	0.1102**	(3.0104)	0.1102**	(3.1965)	0.0909**	(2.7652)
Massing	0.0724**	(3.5583)	0.0675**	(3.4033)	0.0769**	(4.2348)
Height	0.0328	(1.3987)	0.0140	(0.5887)	0.0079	(0.3748)
Condition	0.0214	(0.6128)	0.0293	(0.8707)	0.0312	(1.0008)
Connect	0.0681**	(2.9810)	0.0574*	(2.5617)	0.0654**	(3.2051)
BpR	0.0102**	(5.7598)	0.0077**	(4.4278)	0.0067**	(4.0656)
Attindex	−0.0392**	(−2.7200)	−0.0408**	(−2.8341)	−0.0471**	(−3.6494)
Dgreen	−0.0898**	(−4.5197)	−0.0807**	(−4.0771)	−0.0882**	(−4.9730)
NearST	0.0220*	(2.5806)	0.0201*	(2.1370)	0.0289**	(3.7711)
PWdist	0.0757**	(7.6161)	0.0647**	(6.4809)	0.0566**	(6.1024)
yr2002	−0.0058	(−0.1151)	0.0577	(0.4684)	0.0527	(1.1633)
yr2003	0.1260*	(2.5254)	0.1721	(1.4025)	0.1846**	(4.1258)
yr2004	0.0556	(1.1846)	0.0969	(0.8203)	0.1056*	(2.5103)
yr2005	0.1744**	(3.2972)	0.2234	(1.6761)	0.1878**	(3.9737)
yr2006	0.4421**	(8.7191)	0.5057**	(4.1295)	0.3189**	(6.4205)
yr2007	0.6397**	(11.9617)	0.6657**	(5.3196)	0.4682**	(8.5984)
yr2008	0.4555**	(9.0797)	0.4825**	(3.9844)	0.3387**	(6.9931)
Lambda (λ)			0.6581**	(8.9581)
Rho (ρ)					0.4279**	(7.5933)
Sigma^2 (σ^2)	0.0210		0.0176		0.0167
R^2	0.8494		0.8634		0.8706
Log-likelihood	18.9413		218.4580		231.9330
N	373		373		373

Notes: t values are in parentheses, * and ** denote 5% and 1% significance levels respectively. Multidirectional spatial weight matrix M based on negative exponential distance with 1.2 km cut-off.

Table 3. Moran’s I tests for spatial autocorrelation in the OLS residuals.

M specification	1.9 km	1.8 km	1.7 km	1.6 km	1.5 km	1.4 km	1.3 km	1.2 km
Moran’s I	0.0404	0.0415	0.0383	0.0426	0.0581	0.0732	0.0789	0.0950
Moran’s I-statistic	16.7135	16.5283	14.9900	14.8962	16.1798	17.3529	15.7179	16.1742
Marginal probability	(0.0000)	(0.0000)	(0.0000)	(0.0000)	(0.0000)	(0.0000)	(0.0000)	(0.0000)
Mean	−0.0279	−0.0280	−0.0281	−0.0285	−0.0289	−0.0291	−0.0298	−0.0306
SD	0.0041	0.0042	0.0044	0.0048	0.0054	0.0059	0.0069	0.0078

Table 4. LM tests for type of spatial dependence and general tests for multidirectional spatial weight matrix (M) specification.

Tests	Weight specification
	No cut-off (1.9 km)	1.8 km	1.7 km	1.6 km	1.5 km	1.4 km	1.3 km	1.2 km
LM test no spatial lag	37.9472 (0.000)	34.9251 (0.000)	29.7284 (0.000)	28.6771 (0.000)	42.9065 (0.000)	49.2513 (0.000)	69.7060 (0.000)	77.0109 (0.000)
Robust LM test no spatial lag	33.8396 (0.000)	29.1800 (0.000)	24.9843 (0.000)	21.9840 (0.000)	30.3701 (0.000)	31.3528 (0.000)	48.5134 (0.000)	51.2744 (0.000)
LM test no spatial error	7.0701 (0.008)	7.1839 (0.007)	5.9187 (0.015)	6.7383 (0.009)	12.6273 (0.000)	19.6143 (0.000)	21.6617 (0.000)	29.6569 (0.000)
Robust LM test no spatial error	2.9625 (0.085)	1.4388 (0.230)	2.9625 (0.085)	1.1746 (0.278)	0.0910 (0.763)	1.7158 (0.190)	0.4691 (0.493)	3.9204 (0.048)
Posterior model probability (with SAR model)	0.0001	0.0000	0.0000	0.0000	0.0002	0.0012	0.1980	0.8005

Notes: LM tests use the OLS residuals from Model 1 (p-values are in parentheses). Posterior Bayesian probability tests are performed with the Bayesian estimation results of the model in (6) based on 2000 sample draws with the first 500 discarded for burn-in (LeSage & Pace, 2009).

Table 5. Spatiotemporal specification, STAR and STARAR model estimation comparison.

Variable	Model 4 (STAR+5NN)		Model 5 (STAR+8NN)		Model 6 (STAR+10NN)		Model 7 (STAR+12NN)		Model 8 (STAR+15NN)		Model 9 (STARAR+12NN)
Utility-bearing attributes (X)
Age	−0.1237*	(−2.5014)	−0.1248*	(−2.5456)	−0.1332**	(−2.7289)	−0.1457**	(−2.9801)	−0.1369**	(−2.7528)	−0.1433**	(−3.0439)
Area	0.8011**	(12.1880)	0.7958**	(12.1983)	0.7880**	(12.1265)	0.7735**	(11.8738)	0.7928**	(1.2021)	0.7607**	(11.8804)
Garage	0.2076**	(4.8301)	0.2041**	(4.7820)	0.1998**	(4.7019)	0.1840**	(4.3007)	0.2050**	(4.7657)	0.1768**	(4.1554)
Bedrooms	0.0064	(0.3290)	0.0122	(0.6278)	0.0178	(0.9176)	0.0269	(1.3630)	0.0212	(1.0406)	0.0340	(1.7634)
Receproom	0.1706*	(2.4424)	0.1639*	(2.3662)	0.1591*	(2.3088)	0.1566*	(2.2777)	0.1507*	(2.1461)	0.1565*	(2.3018)
Floorno	0.0354*	(2.4767)	0.0380**	(2.6745)	0.0396**	(2.7941)	0.0397**	(2.8131)	0.0379**	(2.6385)	0.0351*	(2.5395)
Finishing	0.0446	(1.7719)	0.0469	(1.8735)	0.0445	(1.7866)	0.0451	(1.8189)	0.0444	(1.7639)	0.0436	(1.8523)
Identity	0.0448	(1.2518)	0.0533	(1.4955)	0.0576	(1.6211)	0.0625	(1.7604)	0.0540	(1.4986)	0.0461	(1.3520)
Materialqual	0.1850**	(5.2886)	0.1917**	(5.5012)	0.1880**	(5.4374)	0.1794**	(5.2410)	0.1754**	(5.0444)	0.1643**	(5.0804)
Fenestration	0.0917**	(2.8041)	0.0978**	(3.0094)	0.1013**	(3.1287)	0.1041**	(3.2192)	0.1049**	(3.1505)	0.0912**	(2.9118)
Massing	0.0769**	(4.2537)	0.0799**	(4.4481)	0.0826**	(4.6142)	0.0856**	(4.7785)	0.0770**	(4.2668)	0.0846**	(5.0173)
Height	0.0040	(0.1872)	0.0065	(0.3094)	0.0093	(0.4450)	0.0133	(0.6404)	0.0114	(0.5405)	0.0069	(0.3503)
Condition	0.0278	(0.8935)	0.0305	(0.9899)	0.0356	(1.1624)	0.0466	(1.5143)	0.0358	(1.1527)	0.0465	(1.5804)
Connect	0.0643**	(3.1706)	0.0641**	(3.1828)	0.0601**	(2.9975)	0.0625**	(3.1312)	0.0633**	(3.1196)	0.0655**	(3.4526)
BpR	0.0068**	(4.1369)	0.0074**	(4.5137)	0.0076**	(4.6340)	0.0081**	(4.8792)	0.0070**	(4.2535)	0.0076**	(4.7164)
Attindex	−0.0445**	(−3.4429)	−0.0440**	(−3.4456)	−0.0446**	(−3.5166)	−0.0500**	(−3.9526)	−0.0509**	(−3.9293)	−0.0520**	(−4.3828)
Dgreen	−0.0853**	(−4.8204)	−0.0836**	(−4.7602)	−0.0834**	(−4.7759)	−0.0876**	(−5.0476)	−0.0897**	(−5.0847)	−0.0894**	(−5.4927)
NearST	0.0282**	(3.6943)	0.0289**	(3.8225)	0.0291**	(3.8766)	0.0313**	(4.1679)	0.0291**	(3.8192)	0.0316**	(4.7420)
PWdist	0.0559**	(6.0592)	0.0577**	(6.2948)	0.0592**	(6.4695)	0.0615**	(6.7099)	0.0583**	(6.2957)	0.0572**	(6.5135)
Spatial & spatiotemporal parameters
Rho (ρ)	0.4327**	(7.7260)	0.4273**	(7.6537)	0.4304**	(7.7420)	0.4274**	(7.7502)	0.4189**	(7.4258)	0.4625**	(9.2654)
Lambda (λ)											−0.5272	(−1.9559)
Spatiotemporal (ψ)	0.0598*	(1.9619)	0.1047**	(3.1619)	0.1346**	(3.7588)	0.1620**	(4.0650)	0.1007*	(2.2102)	0.1712**	(4.3963)
Constant	−2.1467*	(−2.3282)	−2.7687**	(−2.9481)	−3.0462**	(−3.2571)	−3.4125**	(−3.5568)	−2.4763*	(−2.5618)	−3.6750**	(−4.3816)
Time controls (D)
yr2002	0.0413	(0.9092)	0.0390	(0.8689)	0.0363	(0.8115)	0.0338	(0.7576)	0.0488	(1.0822)	0.0251	(0.7621)
yr2003	0.1804**	(4.0448)	0.1920**	(4.3394)	0.1998**	(4.5274)	0.2140**	(4.8196)	0.2105**	(4.5686)	0.2041**	(6.2381)
yr2004	0.1103**	(2.6305)	0.1173**	(2.8128)	0.1207**	(2.9086)	0.1255**	(3.0272)	0.1223**	(2.8744)	0.1186**	(4.0716)
yr2005	0.1925**	(4.0914)	0.2199**	(4.6077)	0.2384**	(4.9383)	0.2602**	(5.2512)	0.2406**	(4.5585)	0.2518**	(6.8096)
yr2006	0.3078**	(6.1900)	0.3069**	(6.2409)	0.3051**	(6.2348)	0.3055**	(6.2819)	0.3164**	(6.4235)	0.2779**	(7.5196)
yr2007	0.4408**	(7.8691)	0.4323**	(7.8462)	0.4243**	(7.7176)	0.4227**	(7.7490)	0.4516**	(8.2675)	0.3869**	(8.6842)
yr2008	0.3152**	(6.3439)	0.3058**	(6.2389)	0.2972**	(6.0678)	0.2903**	(5.9295)	0.3172**	(6.4645)	0.2654**	(6.9381)
Model fit statistics
Sigma^2 (σ^2)	0.0166		0.0163		0.0161		0.0160		0.0165		0.0157
R^2	0.8719		0.8739		0.8753		0.8761		0.8722		0.8783
Log-likelihood	233.8510		236.8667		238.8707		240.0175		234.3574		241.5136
Test for specification of (U)
Posterior probability ν = 2	0.0014		0.0237		0.1795		0.5268		0.0036
Posterior probability ν = 3	0.0018		0.0260		0.0630		0.1723		0.0019
N	373		373		373		373		373		373

Notes: t-values are in parentheses, * and ** denote 5% and 1% significance levels respectively. Reported results for models 4–8 are with unidirectional spatiotemporal weight matrix U based on the ν = 2 temporal weight decay (4) and multidirectional spatial weight matrix M based on negative exponential distance with 1.2 km cut-off. In Model 9, we employ U based on 12 nearest neighbours (U12) and use the same weight matrix M for both dependent variable and error term autoregression processes.

Table 6. Effect estimates.

Variable	Direct		Indirect		Total		Beta (β)	MY effect |% of β|
Age	−0.1482	(−3.0187)	−0.1096	(−2.4821)	−0.2578	(−2.9121)	−0.1457	1.6851
Area	0.7810	(11.8482)	0.5784	(4.4431)	1.3594	(8.5932)	0.7735	0.9737
Garage	0.1866	(4.2387)	0.1394	(2.8598)	0.3260	(3.7591)	0.1840	1.4219
Bedrooms	0.0272	(1.3444)	0.0208	(1.2301)	0.0480	(1.3125)	0.0269	1.2987
Receproom	0.1599	(2.3938)	0.1193	(2.0161)	0.2792	(2.2927)	0.1566	2.0965
Floorno	0.0401	(2.7659)	0.0292	(2.5390)	0.0693	(2.8015)	0.0397	0.8308
Finishing	0.0460	(1.8145)	0.0334	(1.7093)	0.0795	(1.8154)	0.0451	1.9850
Identity	0.0633	(1.7733)	0.0455	(1.7222)	0.1089	(1.7966)	0.0625	1.3781
Materialqual	0.1811	(5.1906)	0.1316	(4.7000)	0.3127	(5.9349)	0.1794	0.9191
Fenestration	0.1041	(3.3122)	0.0767	(2.7380)	0.1808	(3.2245)	0.1041	0.0086
Massing	0.0864	(4.6856)	0.0643	(3.1380)	0.1507	(4.1908)	0.0856	0.9351
Height	0.0129	(0.6277)	0.0089	(0.5941)	0.0218	(0.6183)	0.0133	3.5138
Condition	0.0471	(1.4522)	0.0353	(1.3163)	0.0824	(1.4160)	0.0466	1.0688
Connect	0.0640	(3.3092)	0.0476	(2.5723)	0.1117	(3.1125)	0.0625	2.4425
BpR	0.0082	(4.9756)	0.0060	(3.7997)	0.0142	(4.9933)	0.0081	1.2658
Attindex	−0.0509	(−3.8918)	−0.0379	(−2.8455)	−0.0887	(−3.5901)	−0.0500	1.7822
Dgreen	−0.0888	(−5.1246)	−0.0659	(−3.3650)	−0.1546	(−4.6131)	−0.0876	1.3218
NearST	0.0319	(4.0912)	0.0239	(2.8178)	0.0558	(3.6480)	0.0313	1.9212
PWdist	0.0621	(6.7944)	0.0457	(4.3211)	0.1078	(6.5949)	0.0615	1.0183

Note: t-values are in parentheses. Beta (β) values are from Model 7. Spatial effect (MY) on point estimates = (Direct-Beta)/Beta*100.

LeSage, J. P., & Pace, K. R. (2009). Introduction to spatial econometrics. New York, NY: CRC Press.10.1201/CHSTATEXMON

 Google Scholar