Pricing Structure in Tokyo Metropolitan Land Markets and its Structural Changes: Pre-bubble, Bubble, and Post-bubble Periods
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
In this paper, we estimate hedonic price equations of Japanese commercial and residential land prices for a 25-year period and to investigate possible structural changes in these price equations. Our price equations are based on transaction prices, not appraised land values, of commercial land in Central Business Districts of Tokyo (Chiyoda Ward, Chuo Ward, and Minato Ward), and residential land of its suburb (Setagaya Ward). We find that price structure differs substantially among locations, reflecting differences in supplier pricing and end-user preferences. We also find significant structural changes in price structure, identifying pre-bubble, bubble and post-bubble periods.
- Amemiya, T. (1985). Advanced econometrics. Harvard University Press.
- Brueckner, J. K. (1986). A switching regression analysis of urban population densities. Journal of Urban Economics, 19, 174–189. CrossRef
- Chinloy, P., Cho, M., & Megbolugbe, I. (1997). Appraisal, transaction incentives, and smoothing. Journal of Real Estate Finance and Economics, 14, 89–111. CrossRef
- Garcia, A. R., & Perron, P. (1996). An analysis of the real Interest rate under regime shifts. Review of Economics and Statistics, 78, 111–125. CrossRef
- Geltner, D., Graff, R., & Young, M. (1994). Random disaggregate error in commercial property: Evidence from the Russell–NCRIEF database. Journal of Real Estate Research, 19, 403–419.
- Goodman, A. C., & Thibodeau, T. G. (2003). Housing market segmentation and hedonic prediction accuracy. Journal of Housing Economics, 12, 181–201. CrossRef
- Hidano, N. (2003). The economic valuation of the environment and public policy: A hedonic approach. Northampton, MA: Edward Elgar.
- Johan, B., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. CrossRef
- McMillen, D. P. (1994). Vintage growth and population density: An empirical investigation. Journal of Urban Economics, 36, 333–352. CrossRef
- Nishimura, K. G. (1999). Expectation heterogeneity and excessive price sensitivity in the land market. Japanese of Economic Review, 50, 27–44.
- Ono, H., Takatsuji, H., Shimizu, C. (2004). Conjunct method of deriving a hedonic price index in a secondhand housing market with structural change. Reitaku Institute for Political Economics and Social Studies, Working Paper #18.
- Quigley, J. M. (1995). A simple hybrid model for estimating real estate price indexes. Journal of Housing Economics, 4(1), 1–12. CrossRef
- Shimizu, C. (2004). Fudosan shijo bunseki. Jutaku Shinpo-Sha.
- Shimizu, C., & Nishimura, K. G. (2006). Biases in appraisal land price information: The case of Japan. Journal of Property Investment and Finance, 26(2), 150–175.
- Shimizu, C., Nishimura, K. G., & Asami, Y. (2004). Search and vacancy costs in the Tokyo housing market: An attempt to measure social costs of imperfect information. Review Of Urban & Regional Development Studies, 16(3), 210–230. CrossRef
- Smith, B. A., & Tesarek, W. P. (1991). House price and regional real estate cycles: Market adjustments in Houston. AREUEA Journal, 19(3), 397–416.
- Tabuchi, T. (1996). Quantity premium in real property markets. Land Economics, 72(2), 206–217. CrossRef
- Thibodeau, T. G. ed. (1997). House price indices. Norwell, MA: Kluwer.
- Pricing Structure in Tokyo Metropolitan Land Markets and its Structural Changes: Pre-bubble, Bubble, and Post-bubble Periods
The Journal of Real Estate Finance and Economics
Volume 35, Issue 4 , pp 475-496
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Quality-adjusted real estate price index
- Hedonic approach
- Bubble economy
- Structure change
- Switching regression model
- Industry Sectors