Sie sind auf Seite 1von 19
Westport Properties Inc. Residential Real Estate RESIDENTIAL GREEN REAL ESTATE PREMIUM THE NETHERLANDS ALICIA LE

Westport Properties Inc. Residential Real Estate

RESIDENTIAL GREEN REAL ESTATE PREMIUM THE NETHERLANDS

Real Estate RESIDENTIAL GREEN REAL ESTATE PREMIUM THE NETHERLANDS ALICIA LE EVA GÖTTGES JAKOB PLUSCHKE JORDI

ALICIA LE

EVA GÖTTGES

JAKOB PLUSCHKE

JORDI JANSEN

Westport Properties Inc.

Report Agenda

Westport Properties Inc. Report Agenda 1. Introduction 2. Literature Review 3. Dutch Residential Real Estate Market

1. Introduction

2. Literature Review

3. Dutch Residential Real Estate Market

4. Transaction Premiums of Green Buildings

5. Investment Recommendations

Review 3. Dutch Residential Real Estate Market 4. Transaction Premiums of Green Buildings 5. Investment Recommendations

Westport Properties Inc.

Introduction

Westport Properties Inc. Introduction R esidential real estate investments in the Netherlands have been profitable and

Residential real estate investments in the Netherlands have been profitable and stable over

the past, attracting worldwide capital. Even during the financial crisis, total residential returns were only negative in 2009 with -2.2% (Bouwinvest, 2013). Signs of overheating however raise uncertainty about the performance of the market. Nevertheless, the Dutch housing market provides Westport Properties a great investment opportunity, that aligns with our new strategy towards improved environmental performance. Sustainability is gradually becoming mainstream in the Netherlands due to tighter regulations, high portions of housing associations that focus on energy efficiency, and because of tenants increasingly demanding energy efficient dwellings (Capital Value, 2018). This investment memo starts with a literature review focusing on green premiums in European residential real estate markets. Next is an overview of the current state of the Dutch housing market, followed by an empirical analysis of transaction prices in the northern Netherlands, focusing on Amsterdam, Rotterdam and The Hague. Lastly, we provide a summary and investment recommendations.

Westport Properties Inc.

Literature Review

Westport Properties Inc. Literature Review

In general, literature addressing energy efficiency in European housing markets finds that

environmentally certified homes achieve higher selling prices and rents. However, there are geographical differences in the impact of energy efficiency and magnitude of transaction premiums. Previous studies present consistent results, finding green transaction premiums across European residential real estate markets, are shown in table one. One of the most notable studies, Brounen and Kok (2011), show that homes certified with an A label sell at a premium of 10.2% compared to D-label homes in 2008 to 2009. Chegut, Eichholtz and Holtermans (2016) observed similar results focusing only on the affordable housing market in the period from 2008 to 2013. Overall, the size of transaction premiums depends on the level of energy efficiency. In addition, research shows that investment in improving a dwelling’s environmental performance likely pays off due to higher transaction prices and rents (Chegut et al., 2016 and Copiello, 2015).

Table 1: European Research - Effect of environmental performance on residential total returns

Brounen and

Chegut,

Cerin, Hassel,

Hyland,

Feige,

Copiello

Kok

Eichholtz,

Semenova

Lyons, Lyons

McAlister,

2015

2011

Holtermans

2014

2013

Wallbaum

2016

2013

Dutch A labelled homes sell at a premium of

Affordable and energy efficient dwelli ngs with an A

6.3%

Most energy efficient homes in Sweden sell at a small

Finds a green premium in the Irish housing market and

Environmental performance of Swiss dwellings is

Finds that increasing the building’s environmental

10.2%

label sell at a

premium of

1.9% higher

positively

performance

compared to D labelled homes

premium of

0.03% with a decrease in

rents for A labelled

related to rent levels

leads to higher rents in Turin,

compared to C labelled homes

energy consumption of

dwellings

Italy

 

1.0%

Westport Properties Inc. Current State of the Dutch Residential Real Estate Market and Future Outlook

Westport Properties Inc.

Current State of the Dutch Residential Real Estate Market and Future Outlook

The Dutch residential market comprises more than 7.6 million homes with a high portion being

owner-occupied (57.0%), and more than one third belonging to housing associations (Capital Value, 2017). After 2013, housing prices steadily increased at an average 7.6% in 2017 and are expected to grow further, exceeding pre-crisis levels (Rabobank, 2018).

Graph1. Average house prices in the Netherlands

2018) . Graph1. Average house prices in the Netherlands Source: Rabobank, 2018 Transaction volumes in the

Source: Rabobank, 2018

Transaction volumes in the residential market were stable before increasing after 2014, reaching a record amount of 5.5 billion euros in 2017 (Capital Value, 2018).

Graph 2. Transaction volume in the Netherlands residential property market

volume in the Netherlands residential property market Source: Capital Value, 2016 We therefore conclude that the

Source: Capital Value, 2016

We therefore conclude that the Dutch housing market recovered from the financial crisis.

Westport Properties Inc.

Westport Properties Inc. Increasing transaction prices are driven by various factors: 1. There is a housing

Increasing transaction prices are driven by various factors:

1. There is a housing shortage in the space market as well as asset market caused by growing

demand and insufficient supply, which is expected to reach a peak of 3.0% (235,000 dwellings)

for the space market in 2020/2021 (Capital Value, 2018 and Rabobank, 2018).

2. The Dutch economy is doing well, reflected by 3.3% GDP growth, which is above EU average, and a drop of unemployment to 4.8% in 2017 (Savills, 2017).

3. Despite rising house prices, low mortgage interest rates ensure affordability of homes. In

the near future, interest rates will likely increase again (Rabobank, 2018).

Graph 3: Percentage change of average housing prices in major cities and provinces of the Netherlands

prices in major cities and provinces of the Netherlands Source DNB, 2017 Housing markets are especially

Source DNB, 2017

Housing markets are especially tight in urban areas like Amsterdam, Rotterdam and The Hague, with strong increases in employment and the number of households, due to urbanization and immigration (DNB, 2017). Rising housing prices, combined with significant supply shortages, produce a seller market in both space and asset markets (DNB, 2017). Nowadays, there are signs of overheating in these housing markets, with Amsterdam being listed on the UBS Global Real Estate Bubble Index 2017 (UBS, 2017). Overall, the shortage is expected to increase due to expected growth of demand and low levels of construction, which increases pressure on the residential market. Additionally, yields will decrease as rents do not grow as fast as selling prices, especially in Amsterdam, making investments less attractive for institutional investors.

Westport Properties Inc.

Westport Properties Inc. Green Transaction Premiums of Houses in northern Netherlands T he following sections aim

Green Transaction Premiums of Houses in northern Netherlands

The following sections aim to identify potential green transaction price premiums in the north

Netherlands property market, focussing on Amsterdam, Rotterdam and The Hague, to provide further insights on the feasibility of entering the Dutch green residential property market.

Methodology

For our empirical analysis, we employ a hedonic pricing model, largely following the work of Chegut et al., 2016, which looks as follows:

the work of Chegut et al., 2016, which looks as follows: The dependent variable is the

The dependent variable is the logarithm of the transaction price per square meter. It is regressed on the dummy variable named “label”, which is equal to 1 if the property has an energy label. The average percentage premium is δ. X describes a vector of hedonic attributes such as size or quality characteristics, and location of the home by the postcode of the area. To control for macroeconomic and time influence on the regression, time fixed effects based on sales year of the property are added using Stata function. Location fixed effects based on cities are added using a set of dummy variables.

Data and Descriptives

We analyse a sample of housing transactions in the north of the Netherlands covering the period 2008 to 2016.

Graph 4 Average transaction prices bounced back since 2014

Average Transaction Price per Square Meter 2008-2016 in €

4000

3500

3000

2500

2000

1500

Price per Square Meter 2008- 2016 in € 4000 3500 3000 2500 2000 1500 Amsterdam Rotterdam
Price per Square Meter 2008- 2016 in € 4000 3500 3000 2500 2000 1500 Amsterdam Rotterdam
Amsterdam Rotterdam The Hague Total
Amsterdam
Rotterdam
The Hague
Total

Graph 4 shows that Amsterdam exhibited the highest average transaction prices per square meter, while Rotterdam and The Hague move relatively close and slightly below the total price development. In line with our market analysis before, price quotes decrease slightly from 2011 to 2014, but recover since then.

Westport Properties Inc.

Westport Properties Inc. Graph 5: Average Transaction Price per Square meter of energy efficient properties Average

Graph 5: Average Transaction Price per Square meter of energy efficient properties

Average Transaction Price per Square Meter in €

4000

3500

3000

2500

2000

1500

Average Transaction Price per Square Meter in € 4000 3500 3000 2500 2000 1500 A-B C
A-B C D-G N Total
A-B
C
D-G
N
Total

Graph 6 shows the average transaction price per square meter from 2008 to 2016 by label groups. The A-B label property group has the highest transaction prices, while lower labelled property groups underperform in terms of transaction prices. However, properties in the non-labelled group outperform energy efficient properties in the period from 2013 to

2016.

Graph 6: Percentage of labelled and non-labelled properties transacted

Percentage Allocation of Label Groups

50%

40%

30%

20%

10%

0%

C D-G N
C
D-G
N
A-B
A-B

Though the transaction prices of non labelled buildings are higher than those of labelled houses, the portion of non labelled homes decreases gradually as the Energy Performance Certificates (EPC) labels become compulsory in the Netherland for residential properties since 2015. Thus we do not focus on this group of buildings for further analysis.

Analysis and Results

In general, there is a green premium for A labelled homes in the residential market compared to C labelled ones in the north of the Netherlands, Rotterdam and Amsterdam. However, labelled homes sell at a negative premium compared to non-llabelled homes, as well as energy efficient houses in The Hague. This negative relationship is partly explained by specific property characteristics. Transaction prices per square meter decrease as size and number of rooms increase. Interestingly, houses built in the period from 1500 to 1905 command higher prices than houses built in more recent periods (Appendix 1). This may be due to most old houses being located in the prime city centre areas and thus can fetch much higher prices.

An in depth analysis is conducted by clustering houses with high energy efficiency, those having label A++, A+, A or B, versus houses with low energy efficiency, label C to G, and non-

Westport Properties Inc.

Westport Properties Inc. labelled houses. Properties with label A, B and C to G were transacted

labelled houses. Properties with label A, B and C to G were transacted at 4.7%, 5.7% and 8.3% lower than non-labelled properties, respectively. These findings are different from Chegut et al. (2016), who find a green premium for A and B labels in the Dutch social housing sector. The effect of locations within a city mentioned above may explains these differences.

Since the data set includes properties transacted during the financial crisis from 2008 until 2010, and properties transacted at the height of the European debt crisis from 2011 to 2013, we run the data again for different periods: 2008-2010, 2011-2013, and 2014-2016. Similar results of negative green premiums are observed.

Removing fixed effects controlling for cities, the relationship between having a label and transaction price per square meter becomes more negative (Appendix 2), confirming that moving between cities affects the magnitude of green premiums. As this is Westport’s first foray into the north Netherlands residential market, the three biggest cities, namely Amsterdam, Rotterdam and The Hague, may be appealing investment destinations. Thus, our team conducts an analysis of green premiums in these cities, both collectively and separately (Appendix 3). As expected, houses were transacted at highest prices in Amsterdam, followed by The Hague, and Rotterdam. In Amsterdam and The Hague, houses with label A are sold at 8.2% and 9.2% lower than non-labelled houses respectively. The green premium is positive but not significant in Rotterdam. Negative green premiums are observed for properties with label from B to G in all three cities.

To test if different locations within a city affect the premium, we perform an analysis for houses in Amsterdam with dummy variables for the city centre, city fringe and suburb areas based on area codes (Appendix 3). Houses in the centre and city fringe are indeed sold at higher prices than those in suburb areas. Though the relationship between price and having an A label is still negative, it is reduced to -0.040 from -0.082. This confirms the neighbourhood effect on transaction price and green premiums.

The regression results suggest that the negative green premium is partly explained by residential markets in the Netherlands being tight as a result of recovering from the crisis. As supply lags behind demand, buyers in many cases may need to accept houses that are available to them regardless of green features, leading to non-existence of green premiums in the market. While this does not support the case for energy efficiency label, we notice that the number of non-labelled houses decreases to less than 5.0% of total market stocks in 2016 (Graph 7). As green features have become the norm, it may be more useful to investigate the performance of properties in different label groups.

Regression results show that properties with label A++, A+, A and B are transacted at prices 2.7% higher than those with label C and below (Table 2 & Appendix 4). This is in line with the 2.6% premium found by Chegut et al. (2016). Further differentiation across EPC labels suggests that houses with high energy efficiency, those having A and B label, receive higher prices than properties with C label: 2.2% and 1.6% respectively. In contrast, properties with label D to G were traded at lower prices than C-labelled houses, ranging from -1.9% to -9.6%. We conduct the same analysis in Amsterdam, Rotterdam and The Hague collectively, and find similar results. This indicates that properties with label A++, A+, A and B can generate green premiums compared to properties with label C and below.

Westport Properties Inc.

Table 2: Summary of regression results

Properties Inc. Table 2: Summary of regression results               Amsterdam
             

Amsterdam

North

Netherlands

North

Netherlands

Amsterdam

Rotterdam

The Hague

(neighbourhood

fixed effect)

Variables

Ln (price/

Ln (price/

Ln (price/

Ln (price/

Ln (price/

Ln (price/

sq m)

sq m)

sq m)

sq m)

sq m)

sq m)

 

All properties

 

Label

-0.0765***

 

(Yes

=1)

A

label

-0.0467***

-0.0822***

0.0126

-0.0917***

-0.0477***

(Yes

=1)

B

label

-0.0571***

-0.0694***

-0.0485***

-0.0861***

-0.0720***

(Yes

=1)

C_G label

 
 

(Yes =1)

-0.0833***

Negative

Negative

Negative

Negative

 

Only labelled properties

 
 

A

label

   

(Yes =1)

0.0223***

 

0.0808***

B

label

 

(Yes =1)

0.0159***

 

0.0616***

D

label

 

(Yes =1)

-0.0195***

 

-0.0396***

E

label

-0.0141***

(Yes =1)

-0.0142***

 

F

label

(Yes =1)

-0.0372***

 

-0.0574***

G

label

-0.0958***

-0.131***

(Yes

=1)

 

Only labelled properties

 

A

label

0.0393***

0.0742***

-0.0987***

 

(Yes =1)

   

B

label

0.0389***

0.00490

-0.0825***

(Yes =1)

   

D

label

0.00612

0.00838

-0.0308***

(Yes =1)

   

E

label

0.00620

0.0342***

-0.0269***

(Yes =1)

   

F

label

0.0100

0.0366***

-0.0581***

(Yes =1)

   

G

label

-0.0103

-0.0251**

-0.101***

(Yes =1)

   

Westport Properties Inc.

Westport Properties Inc. Our final analysis, separating the sample of labelled homes between Amsterdam, Rotterdam and

Our final analysis, separating the sample of labelled homes between Amsterdam, Rotterdam and The Hague shows that A labelled home sell at a premium of 3,9% in Amsterdam and 7,4% in Rotterdam. Rotterdam has high green premiums, which is in line with the fact, that Rotterdam is the less tight market where potential buyers can choose from more option. In The Hague however we find very different results, as there is negative premium of -9,9% for A labelled homes compared to C-labelled ones.

Westport Properties Inc.

Recommendation

Westport Properties Inc. Recommendation A s our business model is vertically integrated, covering development,

As our business model is vertically integrated, covering development, refurbishment, renting

out and selling, we have different recommendations.

Development: We recommend entering the Dutch market as a developer, due to increasing demand, low construction levels and rising prices. It might be especially profitable to develop energy efficient buildings with A and B labels, as we can achieve a transaction premium when selling them in the North of the Netherlands, Amsterdam and Rotterdam. Rotterdam has shown to be the highest green premium as markets are not as tight as in Amsterdam. However, costs of benefit for each development project has to be considered.

Refurbishment Strategy: It could also be profitable to buy old homes and refurbish them, making them more energy efficient. Higher transaction prices might outweigh investment costs in Amsterdam and Rotterdam. However, if we plan to refurbish homes before renting them out, we still need to do further analysis about green rent premiums, as tenant might not be willing to pay proportionally higher rents compared to green premiums.

Buy and Rent Out: Buying green buildings is more expensive in Rotterdam and Amsterdam due to transaction premium. If tenants are not willing to pay higher rent, we might have to forgo high levels of return. Therefore, we need to investigate rent levels before making investments in these two cities. However, The Hague might provide opportunities due to lower transaction prices for energy efficient buildings.

Westport Properties Inc.

References

Westport Properties Inc. References

Brounen, D., & Kok, N. (2011). On the economics of energy labels in the housing market. Journal of Environmental Economics and Management, 62(2), 166 - 179.

CapitalValue. (2016). An analysis of the Dutch residential (investment) market 2016.

CapitalValue. (2018). An analysis of the Dutch residential (investment) market Retrieved from

Cerin, P., Hassel, L., & Semenova, N. (2014). Energy performance and housing prices. Sustainable Development, 22(6), 404 - 419.

Chegut, A., Eichholtz, P., & Holtermans, R. (2016). Energy efficiency and economic value in affordable housing. Energy Policy, 97, 39 - 49.

DeNederlandscheBank. (2017). The housing market in major Dutch cities. Retrieved from

Dinan, T. M., & Miranowski, J. A. (1989). Estimating the implicit price of energy efficiency improvements in the residential housing market: A hedonic approach. Urban Economics, 25 (1), 52 - 67.

DiPasquale and Wheaton (1996), Urban Economics and Real Estate Markets, Prentice Hall.

Gilmer, R. W. ( 1989). Energy labels and economic search: an example from the residential real estate market. Energy Economics, 11(3), 213 - 218.

Hyland, M., Lyons, R., & Lyons, S. (2013). The value of domestic building energy efficiency evidence from Ireland. Energy Economics, 40, 943 - 952.

Lennartz, C., Vrieselaar, N., & Hoving, L. (2018). Dutch housing market rumbles on: even

Retrieved from

higher

price

hike

expected

in

2018.

ResearchBouwinvest. (2013). Dutch residential real estate: non regulated rental market first to bottom out. Retrieved from https://www.bouwinvest.com/media/2254/dutch-residential- real-estate_non-regulated-rental-markte-first-to-bottom-out.pdf:

Savills.

(2017).

Residential

property

market:

The

Netherlands.

Retrieved

from

 

UBS.

(2017).

UBS

Global

Real

Estate

Bubble

Index

Retrieved

from

https://www.ubs.com/global/en/wealth-management/chief-investment-office/key-

topics/2017/global-real-estate-bubble-index-2017.html:

Westport Properties Inc.

Appendix

Westport Properties Inc. Appendix

Appendix 1:

 

(1)

(2)

(3)

VARIABLES

y

y

y

label

-0.108***

-0.0765***

(0.00202)

(0.00188)

A

-0.0467***

(0.00365)

B

-0.0571***

(0.00294)

C_G

-0.0833***

(0.00196)

size_in_sqm

-0.000968***

-0.000981***

(3.54e-05)

(3.54e-05)

house_type2

0.0396***

0.0392***

(0.00211)

(0.00211)

house_type3

0.174***

0.173***

(0.00733)

(0.00732)

house_type4

0.0905***

0.0905***

(0.00280)

(0.00280)

house_type5

0.241***

0.240***

(0.00409)

(0.00409)

house_type6

0.294***

0.293***

(0.00579)

(0.00578)

number_rooms

-0.00972***

-0.00964***

(0.000943)

(0.000943)

construction_period2

-0.139***

-0.139***

(0.00359)

(0.00359)

construction_period3

-0.172***

-0.171***

(0.00387)

(0.00387)

construction_period4

-0.244***

-0.242***

(0.00400)

(0.00400)

construction_period5

-0.347***

-0.345***

(0.00373)

(0.00373)

construction_period6

-0.284***

-0.284***

(0.00376)

(0.00375)

construction_period7

-0.231***

-0.232***

(0.00367)

(0.00368)

construction_period8

-0.105***

-0.117***

(0.00380)

(0.00394)

construction_period9

-0.0642***

-0.0868***

(0.00381)

(0.00433)

city1

-0.468***

-0.437***

-0.435***

(0.00477)

(0.00448)

(0.00449)

city2

-0.468***

-0.419***

-0.417***

(0.00526)

(0.00490)

(0.00490)

city3

-0.119***

-0.0257***

-0.0234***

(0.00549)

(0.00512)

(0.00512)

city5

-0.479***

-0.481***

-0.479***

(0.00722)

(0.00665)

(0.00665)

city6

-0.592***

-0.515***

-0.514***

(0.00603)

(0.00561)

(0.00561)

city7

-0.361***

-0.334***

-0.332***

(0.00520)

(0.00479)

(0.00479)

city8

-0.609***

-0.580***

-0.578***

(0.00482)

(0.00451)

(0.00451)

city9

-0.506***

-0.485***

-0.482***

Westport Properties Inc.

Westport Properties Inc.   (0.00546) (0.00509) (0.00509)   city10 -0.172*** -0.175***
 

(0.00546)

(0.00509)

(0.00509)

 

city10

-0.172***

-0.175***

-0.173***

 

(0.00391)

(0.00367)

(0.00367)

 

city11

-0.307***

-0.308***

-0.307***

 

(0.00428)

(0.00411)

(0.00411)

 

city12

-0.562***

-0.584***

-0.585***

 

(0.00684)

(0.00643)

(0.00643)

 

city13

-0.334***

-0.327***

-0.325***

 

(0.00492)

(0.00461)

(0.00461)

 

city14

-0.558***

-0.580***

-0.579***

 

(0.00638)

(0.00598)

(0.00598)

 

city15

-0.335***

-0.309***

-0.307***

 

(0.00715)

(0.00662)

(0.00662)

 

city16

-0.287***

-0.245***

-0.243***

 

(0.00507)

(0.00469)

(0.00469)

 

city17

-0.384***

-0.310***

-0.308***

 

(0.00511)

(0.00475)

(0.00475)

 

city18

-0.490***

-0.463***

-0.463***

 

(0.00557)

(0.00522)

(0.00522)

 

city19

-0.534***

-0.448***

-0.446***

 

(0.00658)

(0.00608)

(0.00608)

 

city20

-0.530***

-0.503***

-0.502***

 

(0.00274)

(0.00256)

(0.00257)

 

city21

-0.654***

-0.623***

-0.620***

 

(0.00564)

(0.00518)

(0.00518)

 

city22

-0.472***

-0.451***

-0.449***

 

(0.00283)

(0.00269)

(0.00269)

 

city23

-0.325***

-0.330***

-0.327***

 

(0.00619)

(0.00576)

(0.00576)

 

city24

-0.589***

-0.546***

-0.544***

 

(0.00603)

(0.00557)

(0.00557)

 

city25

-0.353***

-0.337***

-0.335***

 

(0.00566)

(0.00530)

(0.00530)

 

city26

-0.461***

-0.472***

-0.470***

 

(0.00441)

(0.00420)

(0.00420)

 

city27

-0.478***

-0.438***

-0.436***

 

(0.00444)

(0.00423)

(0.00423)

 

Constant

8.093***

8.339***

8.341***

 

(0.00225)

(0.00418)

(0.00419)

 

Observations R-squared Number of sales_year

122,293

122,293

122,293

0.392

0.494

0.495

9

9

9

 

Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1

 

Appendix 2:

 

(1)

(2)

(3)

 

VARIABLES

y

y

y

A

-0.0793***

 

(0.00459)

 

B

-0.0800***

 

(0.00370)

 

C_G

-0.146***

 

(0.00244)

 

size_in_sqm

-0.00164***

-0.00166***

 

(4.42e-05)

(4.42e-05)

 

house_type2

0.00762***

0.00749***

 

(0.00245)

(0.00245)

 

house_type3

0.135***

0.133***

Westport Properties Inc.

Westport Properties Inc.   (0.00917) (0.00916) house_type4 0.0554*** 0.0559*** (0.00335)
 

(0.00917)

(0.00916)

house_type4

0.0554***

0.0559***

(0.00335)

(0.00334)

house_type5

0.191***

0.190***

(0.00492)

(0.00491)

house_type6

0.240***

0.239***

(0.00705)

(0.00704)

number_rooms

-0.0212***

-0.0208***

(0.00118)

(0.00118)

construction_period2

-0.176***

-0.174***

(0.00452)

(0.00451)

construction_period3

-0.273***

-0.270***

(0.00484)

(0.00483)

construction_period4

-0.361***

-0.357***

(0.00495)

(0.00495)

construction_period5

-0.416***

-0.412***

(0.00461)

(0.00460)

construction_period6

-0.406***

-0.404***

(0.00460)

(0.00459)

construction_period7

-0.294***

-0.297***

(0.00454)

(0.00454)

construction_period8

-0.176***

-0.204***

(0.00472)

(0.00490)

construction_period9

-0.134***

-0.177***

(0.00473)

(0.00539)

label

-0.172***

-0.132***

(0.00251)

(0.00235)

Constant

7.782***

8.244***

8.250***

(0.00219)

(0.00518)

(0.00518)

Observations

122,293

122,293

122,293

R-squared

0.037

0.194

0.197

Number of sales_year

9

9

9

Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1

Westport Properties Inc.

Westport Properties Inc. Appendix 3:   3 big cities Amsterdam Rotterdam The Hague Amsterdam VARIABLES

Appendix 3:

 

3 big cities

Amsterdam

Rotterdam

The Hague

Amsterdam

VARIABLES

y

y

y

y

y

Rot

-0.503***

(0.00306)

DH

-0.466***

(0.00326)

A

-0.0822***

0.0126

-0.0917***

-0.0477***

(0.00820)

(0.0105)

(0.0121)

(0.00723)

B

-0.0694***

-0.0485***

-0.0861***

-0.0720***

(0.00621)

(0.00873)

(0.0113)

(0.00547)

C

-0.103***

-0.0498***

-0.0245***

-0.102***

(0.00557)

(0.00709)

(0.00911)

(0.00491)

D

-0.0926***

-0.0402***

-0.0596***

-0.0842***

(0.00623)

(0.00712)

(0.00779)

(0.00549)

E

-0.0923***

-0.0158*

-0.0554***

-0.0698***

(0.00716)

(0.00820)

(0.00863)

(0.00631)

F

-0.0899***

-0.0110

-0.0832***

-0.0800***

(0.00968)

(0.00919)

(0.00894)

(0.00852)

G

-0.104***

-0.0707***

-0.126***

-0.0861***

(0.0128)

(0.0102)

(0.0101)

(0.0113)

size in sqm

-0.000215***

-0.00224***

0.000913***

0.00147***

-0.00203***

(6.43e-05)

(9.98e-05)

(0.000101)

(0.000112)

(8.81e-05)

house type2

0.00993**

-0.105***

0.0198***

0.0783***

-0.0439***

(0.00408)

(0.00649)

(0.00611)

(0.00778)

(0.00577)

house type3

0.113***

-0.00775

0.137***

0.149***

0.0756***

(0.0188)

(0.0305)

(0.0268)

(0.0336)

(0.0269)

house type4

0.0485***

-0.0856***

0.0801***

0.0766***

-0.0272***

(0.00641)

(0.0107)

(0.00878)

(0.0126)

(0.00941)

house type5

0.237***

0.0449**

0.239***

0.281***

0.0908***

(0.0111)

(0.0209)

(0.0152)

(0.0190)

(0.0184)

house type6

0.254***

0.177***

0.367***

0.266***

0.218***

(0.0172)

(0.0228)

(0.0258)

(0.0387)

(0.0201)

number rooms

-0.0239***

-0.00961***

-0.0317***

-0.0216***

-0.00172

(0.00171)

(0.00254)

(0.00273)

(0.00299)

(0.00224)

construction period

-0.193***

-0.140***

-0.0756***

-0.205***

-0.0833***

(0.00552)

(0.00656)

(0.0127)

(0.0104)

(0.00596)

construction period

-0.286***

-0.177***

-0.0240*

-0.296***

-0.122***

(0.00606)

(0.00858)

(0.0127)

(0.0109)

(0.00769)

construction period

-0.345***

-0.426***

-0.0138

-0.238***

-0.248***

(0.00638)

(0.00962)

(0.0129)

(0.0116)

(0.00875)

construction period

-0.496***

-0.571***

-0.136***

-0.367***

-0.374***

(0.00607)

(0.00760)

(0.0131)

(0.0124)

(0.00712)

construction period

-0.429***

-0.612***

-0.0977***

-0.184***

-0.467***

(0.00673)

(0.00926)

(0.0133)

(0.0132)

(0.00835)

construction period

-0.373***

-0.441***

-0.0228*

-0.204***

-0.298***

(0.00583)

(0.00737)

(0.0127)

(0.0142)

(0.00673)

construction period

-0.216***

-0.268***

0.0988***

-0.120***

-0.145***

(0.00607)

(0.00793)

(0.0132)

(0.0130)

(0.00715)

construction period

-0.180***

-0.271***

0.156***

-0.152***

-0.115***

(0.00600)

(0.00849)

(0.0142)

(0.0137)

(0.00772)

central

0.465***

(0.00627)

fringe

0.246***

(0.00392)

Constant

8.374***

8.594***

7.527***

7.721***

8.241***

(0.00636)

(0.00836)

(0.0153)

(0.0141)

(0.00862)

Observations

53,622

22,600

16,396

14,626

22,600

R-squared

0.510

0.450

0.177

0.187

0.574

Number of

9

9

9

9

9

Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1

Westport Properties Inc.

Appendix 4:

 

(1)

(2)

VARIABLES

y

y

A_B

0.0268***

(0.00274)

A

0.0223***

(0.00421)

B

0.0159***

(0.00294)

D

-0.0195***

(0.00253)

E

-0.0142***

(0.00288)

F

-0.0372***

(0.00327)

G

-0.0958***

(0.00382)

size_in_sqm

-0.000928***

-0.000955***

(4.06e-05)

(4.05e-05)

house_type2

0.0511***

0.0500***

(0.00235)

(0.00235)

house_type3

0.183***

0.184***

(0.00815)

(0.00813)

house_type4

0.103***

0.108***

(0.00311)

(0.00310)

house_type5

0.254***

0.262***

(0.00460)

(0.00460)

house_type6

0.315***

0.328***

(0.00655)

(0.00655)

number_rooms

-0.0111***

-0.0110***

(0.00107)

(0.00106)

construction_period2

-0.149***

-0.147***

(0.00450)

(0.00448)

construction_period3

-0.167***

-0.162***

(0.00478)

(0.00477)

construction_period4

-0.235***

-0.242***

(0.00482)

(0.00481)

construction_period5

-0.335***

-0.345***

(0.00453)

(0.00454)

construction_period6

-0.278***

-0.296***

(0.00454)

(0.00459)

construction_period7

-0.219***

-0.244***

(0.00446)

(0.00465)

construction_period8

-0.104***

-0.128***

(0.00489)

(0.00503)

construction_period9

-0.0711***

-0.0948***

(0.00522)

(0.00571)

city1

-0.408***

-0.405***

(0.00501)

(0.00499)

city2

-0.391***

-0.387***

(0.00532)

(0.00530)

city3

0.0270***

0.0306***

(0.00583)

(0.00581)

city5

-0.446***

-0.441***

(0.00729)

(0.00727)

city6

-0.489***

-0.487***

(0.00613)

(0.00611)

city7

-0.299***

-0.293***

(0.00532)

(0.00531)

-0.489*** -0.487*** (0.00613) (0.00611) city7 -0.299*** -0.293*** (0.00532) (0.00531) 18

Westport Properties Inc.

Westport Properties Inc. city8 -0.547*** -0.542*** (0.00505) (0.00504) city9 -0.448*** -0.443***

city8

-0.547***

-0.542***

(0.00505)

(0.00504)

city9

-0.448***

-0.443***

(0.00568)

(0.00566)

city10

-0.123***

-0.117***

(0.00420)

(0.00420)

city11

-0.273***

-0.271***

(0.00455)

(0.00453)

city12

-0.562***

-0.562***

(0.00711)

(0.00709)

city13

-0.292***

-0.285***

(0.00516)

(0.00515)

city14

-0.553***

-0.553***

(0.00654)

(0.00652)

city15

-0.286***

-0.283***

(0.00716)

(0.00713)

city16

-0.211***

-0.206***

(0.00522)

(0.00521)

city17

-0.270***

-0.267***

(0.00531)

(0.00530)

city18

-0.431***

-0.428***

(0.00579)

(0.00578)

city19

-0.413***

-0.408***

(0.00687)

(0.00685)

city20

-0.465***

-0.462***

(0.00290)

(0.00290)

city21

-0.584***

-0.578***

(0.00567)

(0.00566)

city22

-0.414***

-0.409***

(0.00313)

(0.00314)

city23

-0.291***

-0.285***

(0.00640)

(0.00639)

city24

-0.508***

-0.504***

(0.00626)

(0.00625)

city25

-0.309***

-0.306***

(0.00585)

(0.00583)

city26

-0.429***

-0.424***

(0.00473)

(0.00471)

city27

-0.406***

-0.401***

(0.00461)

(0.00461)

Constant

8.224***

8.252***

(0.00500)

(0.00526)

Observations R-squared Number of sales_year

95,987

95,987

0.444

0.448

9

9

Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1