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Article
Publication date: 1 October 1996

François Des Rosiers, Antonio Lagana, Marius Thériault and Marcel Beaudoin

Focuses on the effect of both proximity and size of shopping centres on surrounding residential property values, using hedonic modelling. States that the data bank consists of a…

2536

Abstract

Focuses on the effect of both proximity and size of shopping centres on surrounding residential property values, using hedonic modelling. States that the data bank consists of a subset of some 4,000 single‐detached, owner‐occupied housing units transacted all over the Quebec Urban Community territory between January 1990 and December 1991. Tests several functional forms and uses up to 60 descriptors. Reveals that in line with previous studies, findings indicate that shopping‐centre size exerts a positive contributory effect on values; they also tend to confirm the non‐monotonicity of the price‐distance function. Concludes that, in that respect, resorting to the gamma function for distance variables yields most interesting results and provides consistent estimates of optimal distances for various shopping‐centre size categories.

Details

Journal of Property Valuation and Investment, vol. 14 no. 4
Type: Research Article
ISSN: 0960-2712

Keywords

Article
Publication date: 1 June 2000

François Des Rosiers, Marius Thériault and Paul‐Y Villeneuve

This paper investigates the analytical potential of factor analysis for sorting out neighbourhood and access factors in hedonic modelling using a simulation procedure that…

2667

Abstract

This paper investigates the analytical potential of factor analysis for sorting out neighbourhood and access factors in hedonic modelling using a simulation procedure that combines GIS technology and spatial statistics. An application to the housing market of the Quebec Urban Community (575,000 in population; study based on some 2,400 cottages transacted from 1993 to 1997) illustrates the relevance of this approach. In the first place, accessibility from each home to selected activity places is computed on the basis of minimum travelling time using the TransCAD transportation‐oriented GIS software. The spatial autocorrelation issue is then addressed and a general modelling procedure developed. Following a five‐step approach, property specifics are first introduced in the model; proximity and neighbourhood attributes are then successively added on. Finally, factor analyses are performed on each set of access and census variables, thereby reducing to six principal components an array of 49 individual attributes. Substituting the resulting factors for the initial descriptors leads to high model performances, controlled collinearity and stable hedonic prices, although remaining spatial autocorrelation is still detected in the residuals.

Details

Journal of Property Investment & Finance, vol. 18 no. 3
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 1 February 2005

Marius Thériault, François Des Rosiers and Florent Joerin

This paper is an attempt to bridge the gap between, on the one hand, the mobility behaviour of households and their perception of accessibility to urban amenities and, on the…

2481

Abstract

Purpose

This paper is an attempt to bridge the gap between, on the one hand, the mobility behaviour of households and their perception of accessibility to urban amenities and, on the other hand, house price dynamics as captured through hedonic modelling.

Design/methodology/approach

In order to analyse the mobility behaviour of individuals and households, their sensitivity to travel time from home to service places is estimated so as to assess their perceived accessibility, using “subjective” indices based on actual trips, as reported in the 2001 origin‐destination survey designed for Quebec City. For comparative purposes, both objective and subjective accessibility indices based, in the former case on observed travel times and, in the latter case on fuzzy logic criteria, are computed and used as a complement to a centrality index in a hedonic model of house prices.

Findings

Findings indicate that there are statistically significant differences in the way accessibility is structured depending on trip purposes and household profiles. They also suggest that, while an objective measure of accessibility yields good results, resorting to subjective, and more comprehensive, accessibility indices derived from fuzzy logic provides greater insight into the understanding of commuting patterns and travel behaviour of people.

Practical implications

Better understanding the complexity of individuals’ and households’ mobility behaviour should result in more adequate initiatives and decisions being taken by transportation and city planning authorities.

Originality/value

Accessibility to jobs and services has long been known as a major determinant of urban, residential and non residential, rents. Yet, it is more often than not assumed to derive from a rather straightforward process, which this paper shows is not the case.

Details

Journal of Property Investment & Finance, vol. 23 no. 1
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 1 December 1999

François Des Rosiers, Alain Bolduc and Marius Thériault

This research paper investigates the effect of drinking water quality on property values in Charlesbourg, a major municipality (70,000 inhabitants) of the Quebec City region where…

1170

Abstract

This research paper investigates the effect of drinking water quality on property values in Charlesbourg, a major municipality (70,000 inhabitants) of the Quebec City region where repeated water‐related health problems were experienced in 1990 and 1991. In this paper, 807 bungalow sales are sampled from the data bank of the Quebec Urban Community (QUC) Appraisal Division, and environmental information pertaining to local drinking water quality levels supplements data on physical, neighbourhood and access attributes. Our findings indicate that water‐related health hazards exert a detrimental and measurable impact on higher property values, with the average duration of the warning period per sector clearly emerging as the dominant factor. More precisely, market segmentation suggests that the higher the price of the property, the sharper the decline in market value because of this factor. In the current case study, the most severely affected properties of the upper third segment of the market experienced drops in value ranging from 5.2 to 10.3 percent of mean sale price.

Details

Journal of Property Investment & Finance, vol. 17 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 March 2003

Marius Thériault, François Des Rosiers, Paul Villeneuve and Yan Kestens

This paper presents a procedure for considering interactions of neighbourhood quality and property specifics within hedonic models of housing price. It handles interactions…

3026

Abstract

This paper presents a procedure for considering interactions of neighbourhood quality and property specifics within hedonic models of housing price. It handles interactions between geographical factors and the marginal contribution of each property attribute for enhancing values assessment. Making use of simulation procedures, it is combining GIS technology and spatial statistics to define principal components of accessibility and socio‐economic census related to transaction prices of single‐family homes. An application to the housing market of the Quebec Urban Community (more than 3,600 bungalows transacted in 1990 and 1991) illustrates its usefulness for building spatial hedonic models, while controlling for multicollinearity, spatial autocorrelation and heteroskedasticity. Distance‐weighted averages of each property attribute in the neighbourhood and interactions of property attributes with each principal component are used to detect any spatial effect on sale price variations. This first‐stage spatial hedonic model approximates market prices, which are then used in order to compare “expected” and actual property tax amounts, which are added to obtain a second‐stage model incorporating fiscal effects on house values. Interactions between geographical factors and property specifics are computed using formulae avoiding multicollinearity problems, while considering several processes responsible for spatial variability. For each property attribute, they define sub‐models which can be used to map variations, across the city, of its marginal value, assessing the cross‐effect of geographical location (in terms of neighbourhood profiles and accessibility to services) and its own valuation parameters. Moreover, this procedure distinguishes property attributes, exerting a stable contribution to value (constant over the entire region) from those whose implicit price significantly varies over space.

Details

Property Management, vol. 21 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 12 July 2011

François Des Rosiers, Jean Dubé and Marius Thériault

Both hedonics and the traditional sales comparison approach are derived from a similar paradigm with respect to how prices, hence market values, are determined. While the hedonic…

1106

Abstract

Purpose

Both hedonics and the traditional sales comparison approach are derived from a similar paradigm with respect to how prices, hence market values, are determined. While the hedonic approach can provide reliable estimates of individual attributes' marginal contribution, it may – unlike the sales comparison approach – underestimate the prominent influence that surrounding properties exert on any given nearby housing unit and sale price. This paper seeks to develop a simple method for reconciling the two approaches within a rigorous conceptual and methodological framework.

Design/methodology/approach

Peer effect models, an analytical device developed, and mainly used, by labour economists, are adapted to the hedonic price equation so as to incorporate nearby properties' influences, thereby controlling for non‐observable neighbourhood effects. In addition to basic, intrinsic, building and land attributes, the ensuing model accounts for three types of effects, namely endogenous interactions effects (i.e. comparable sales influences, or peer effects), exogenous, or neighbourhood, effects and, finally, spatial autocorrelation effects.

Findings

Preliminary findings suggest that integrating peer effects in the hedonic equation allows bringing out the combined impacts of endogenous, exogenous and spatially correlated effects in the house price determination process, with spatial autocorrelation of model residuals being significantly reduced, even without resorting to a spatial autoregressive procedure.

Research limitations/implications

Further investigation is still needed in order to find out which submarket delineation should be used to obtain optimal model performances.

Originality/value

The paper leads to the conclusion that the comparable sales approach, as used in traditional appraisal practice, is valid, although its application is typically flawed by the too small sample size generally used by appraisers. Further investigation is still needed, however, in order to find out which submarket delineation should be used to obtain optimal model performances. This raises the paramount question as to whether the peer effect variable is adequately measured and addresses the tricky issue of kernel determination in spatial statistics and related applications, such as GWR.

Details

Journal of Property Investment & Finance, vol. 29 no. 4/5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 June 2012

Jean Dubé, Marius Thériault and François Des Rosiers

Spatial autocorrelation in regression residuals is a major issue for the modeller because it disturbs parameter estimates and invalidates the reliability of conclusions drawn from…

Abstract

Purpose

Spatial autocorrelation in regression residuals is a major issue for the modeller because it disturbs parameter estimates and invalidates the reliability of conclusions drawn from models. The purpose of this paper is to develop an approach which generates new spatial predictors that can be mapped and qualitatively analysed while controlling for spatial autocorrelation among residuals.

Design/methodology/approach

This paper explores an alternate approach using a Fourier polynomial function based on geographical coordinates to construct an additional spatial predictor that allows to capture the latent spatial pattern hidden among residuals. An empirical validation based on hedonic modelling of sale prices variation using a large dataset of house transactions is provided.

Findings

Results show that the spatial autocorrelation problem is under control as shown by low Moran's I indexes. Moreover, this geo‐statistical approach provides coefficients on environmental amenities that are still highly significant by capturing only the remaining spatial autocorrelation.

Originality/value

The originality of this paper relies on the development of a new model that allows considering, simultaneously spatial and time dimension while measuring the marginal impact of environmental amenities on house prices avoiding competition with the weight matrix needed in most spatial econometric models.

Book part
Publication date: 29 January 2013

Marius Thériault, Martin Lee-Gosselin, Louis Alexandre, François Théberge and Louis Dieumegarde

Purpose — In the context of evaluating transportation and carbon emission policies, improve weekly activity and mobility scheduling survey methodology in order to enhance data…

Abstract

Purpose — In the context of evaluating transportation and carbon emission policies, improve weekly activity and mobility scheduling survey methodology in order to enhance data quality while reducing costs and decreasing respondent burden for designing continuous self-administered surveys that are predominantly passive (or computer-assisted).

Approach — Evaluate a set of functionalities deployed in a web travel survey interface (2009) and compare with a pencil-and-paper survey (2002–2003) deployed in Quebec City that sought similar data about weekly mobility. The first used a pencil-and-paper approach complemented by interviews and telecommunications. The second used applets developed in Java, and Google Maps in order to assist geocoding of activity places and the reporting of actual trips into a relational database, while using email to recruit and support respondents.

Implications — Both of these surveys had to address specific technical and privacy challenges during deployment, making their comparison relevant for discussing some of the impacts of information technologies on spatiotemporal data quality, conviviality of survey procedure, respondents' motivation and privacy protection.

Limitations — While neither of these surveys employed movement-aware mobile devices, such as GPS loggers, some of the lessons learnt are relevant to the design issues raised by the increasing deployment of such devices in travel surveys, and by the growing need to manage complex surveys over extended observation periods.

Details

Transport Survey Methods
Type: Book
ISBN: 978-1-78-190288-2

Keywords

Abstract

Details

Transport Survey Methods
Type: Book
ISBN: 978-1-78-190288-2

Content available
Article
Publication date: 1 June 2000

Nick French

217

Abstract

Details

Journal of Property Investment & Finance, vol. 18 no. 3
Type: Research Article
ISSN: 1463-578X

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