[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v71y2018icp530-539.html
   My bibliography  Save this article

Why the market value of residential premises and the costs of its purchase differ: The examples of Belarus and Poland

Author

Listed:
  • Manzhynski, Siarhei
  • Źróbek, Sabina
  • Batura, Olga
  • Zysk, Elżbieta
Abstract
The purpose of this study is to investigate features of transaction costs (fees and taxes) regarding real estate deals and to analyze transaction costs in the real estate market in emerging and established economies in order to research the link between the extent of market development and transaction costs. The authors’ methodological approach to estimation of transaction costs consists of qualitative and quantitative stages and is based on descriptive, normative and statistical information, which allows estimation and comparison of transaction costs as well as their structure and sources of occurrence by types. The two cases were chosen for practical implementation of the method: a transition economy of Belarus and a relatively established market economy of Poland. In order to measure transaction costs, the authors use the example of a residential property in order to provide a comparable basis for further analysis. Application of the method to the most prevalent pattern of real estate deals shows sufficient comparability of transaction costs (ca. 2.5%) and a slight difference (ca. 4%) caused by the absence of transaction tax in Belarus.

Suggested Citation

  • Manzhynski, Siarhei & Źróbek, Sabina & Batura, Olga & Zysk, Elżbieta, 2018. "Why the market value of residential premises and the costs of its purchase differ: The examples of Belarus and Poland," Land Use Policy, Elsevier, vol. 71(C), pages 530-539.
    • Handle: RePEc:eee:lauspo:v:71:y:2018:i:c:p:530-539
    DOI: 10.1016/j.landusepol.2017.11.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837717313340
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2017.11.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eggertsson, Thrainn, 1990. "The role of transaction costs and property rights in economic analysis," European Economic Review, Elsevier, vol. 34(2-3), pages 450-457, May.
    2. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    3. Daniel C. Quan, 2002. "Market Mechanism Choice and Real Estate Disposition: Search Versus Auction," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(3), pages 365-384.
    4. Darren K. Hayunga & R. Kelley Pace, 2017. "List Prices in the US Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 55(2), pages 155-184, August.
    5. Radosław Trojanek, 2016. "The impact of green areas on dwelling prices: the case of Poznań city," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 27-35.
    6. H. B. Malmgren, 1961. "Information, Expectations and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 75(3), pages 399-421.
    7. Łukasz Hardt, 2005. "Instytucje a koszty transakcyjne w nowej ekonomii instytucjonalnej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 1-19.
    8. Klaes, Matthias, 2000. "The Birth of the Concept of Transaction Costs: Issues and Controversies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 567-593, December.
    9. Susanne Cannon & Norman G. Miller & Gurupdesh S. Pandher, 2006. "Risk and Return in the U.S. Housing Market: A Cross-Sectional Asset-Pricing Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 34(4), pages 519-552, December.
    10. Garrick, Dustin & Whitten, Stuart M. & Coggan, Anthea, 2013. "Understanding the evolution and performance of water markets and allocation policy: A transaction costs analysis framework," Ecological Economics, Elsevier, vol. 88(C), pages 195-205.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grover Richard & Walacik Marek, 2019. "Property Valuation and Taxation for Fiscal Sustainability – Lessons for Poland," Real Estate Management and Valuation, Sciendo, vol. 27(1), pages 35-48, March.
    2. Brzezicka, Justyna & Łaszek, Jacek & Olszewski, Krzysztof & Waszczuk, Joanna, 2019. "Analysis of the filtering process and the ripple effect on the primary and secondary housing market in Warsaw, Poland," Land Use Policy, Elsevier, vol. 88(C).
    3. Santos Eulália & Tavares Fernando, 2021. "The Profile of Portuguese People when Choosing an Apartment," Real Estate Management and Valuation, Sciendo, vol. 29(2), pages 38-51, June.
    4. Melnychenko Oleksandr & Osadcha Tetiana & Kovalyov Anatoliy & Matskul Valerii, 2022. "Dependence of Housing Real Estate Prices on Inflation as One of the Most Important Factors: Poland’s Case," Real Estate Management and Valuation, Sciendo, vol. 30(4), pages 25-41, December.
    5. Sabina Źróbek & Elżbieta Zysk & Mirosław Bełej & Natalija Lepkova, 2020. "Do Women Affect the Final Decision on the Housing Market? A Case Study," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    6. Petcharat, Thanatchaphan & Jattamart, Aungkana & Leelasantitham, Adisorn, 2023. "A conceptual model to imply a negative innovation assessment framework on consumer behaviors through the electronic business platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    7. Kazak Jan K. & Simeunović Nataša & Hendricks Andreas, 2019. "Hidden Public Value Identification of Real Estate Management Decisions," Real Estate Management and Valuation, Sciendo, vol. 27(4), pages 96-104, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christine Léger Léger-Bosch, 2019. "Farmland tenure and transaction costs: Public and collectively owned land vs conventional coordination mechanisms in France [Régime de tenure foncière et coûts de transaction: terres publiques et c," Post-Print hal-02573765, HAL.
    2. Coggan, Anthea & Buitelaar, Edwin & Whitten, Stuart & Bennett, Jeff, 2013. "Factors that influence transaction costs in development offsets: Who bears what and why?," Ecological Economics, Elsevier, vol. 88(C), pages 222-231.
    3. Christine Léger Léger-Bosch, 2018. "Farmland Tenure and Transaction Costs," Working Papers hal-01775201, HAL.
    4. Fan, Shengyue & Yang, Jinfei & Liu, Wenwen & Wang, He, 2019. "Institutional Credibility Measurement Based on Structure of Transaction Costs: A Case Study of Ongniud Banner in the Inner Mongolia Autonomous Region," Ecological Economics, Elsevier, vol. 159(C), pages 212-225.
    5. Shahab, Sina & Clinch, J. Peter & O’Neill, Eoin, 2018. "Accounting for transaction costs in planning policy evaluation," Land Use Policy, Elsevier, vol. 70(C), pages 263-272.
    6. McCann, Laura, 2013. "Transaction costs and environmental policy design," Ecological Economics, Elsevier, vol. 88(C), pages 253-262.
    7. Chen, Yang & Zhang, Xiaoling & Chau, K.W. & Yang, Linchuan, 2022. "How the institutional change in urban redevelopment affects the duration of land redevelopment approval in China?," Land Use Policy, Elsevier, vol. 119(C).
    8. DeBoe, Gwendolen & Stephenson, Kurt, 2016. "Transactions costs of expanding nutrient trading to agricultural working lands: A Virginia case study," Ecological Economics, Elsevier, vol. 130(C), pages 176-185.
    9. Thiel, Andreas & Schleyer, Christian & Hinkel, Jochen & Schlüter, Maja & Hagedorn, Konrad & Bisaro, Sandy & Bobojonov, Ihtiyor & Hamidov, Ahmad, 2016. "Transferring Williamson's discriminating alignment to the analysis of environmental governance of social-ecological interdependence," Ecological Economics, Elsevier, vol. 128(C), pages 159-168.
    10. Loch, Adam & Wheeler, Sarah Ann & Settre, Claire, 2018. "Private Transaction Costs of Water Trade in the Murray–Darling Basin," Ecological Economics, Elsevier, vol. 146(C), pages 560-573.
    11. Akshita Singh & Shailendra Kumar & Utkarsh Goel & Amar Johri, 2023. "Behavioural biases in real estate investment: a literature review and future research agenda," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    12. Bauman, Allison & Goemans, Christopher & Pritchett, James & Thilmany McFadden, Dawn, 2015. "Modeling Imperfectly Competitive Water Markets in the Western U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 201448, Agricultural and Applied Economics Association.
    13. Nantongo, Mary & Vatn, Arild, 2019. "Estimating Transaction Costs of REDD+," Ecological Economics, Elsevier, vol. 156(C), pages 1-11.
    14. Marshall, Graham R., 2013. "Transaction Costs, Collective Action And Adaptation In Managing Social-Ecological Systems," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152166, Australian Agricultural and Resource Economics Society.
    15. Phan, Thu-Ha Dang & Brouwer, Roy & Hoang, Long Phi & Davidson, Marc David, 2017. "A comparative study of transaction costs of payments for forest ecosystem services in Vietnam," Forest Policy and Economics, Elsevier, vol. 80(C), pages 141-149.
    16. Crase, Lin & O'Keefe, Sue & Dollery, Brian, 2013. "Talk is cheap, or is it? The cost of consulting about uncertain reallocation of water in the Murray–Darling Basin, Australia," Ecological Economics, Elsevier, vol. 88(C), pages 206-213.
    17. Krutilla, Kerry & Alexeev, Alexander, 2014. "The Political Transaction Costs and Uncertainties of Establishing Environmental Rights," Ecological Economics, Elsevier, vol. 107(C), pages 299-309.
    18. Graham R. Marshall, 2020. "Evaluating Adaptive Efficiency in Environmental Water Recovery: Application of a Framework for Institutional Cost-Effectiveness Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-28, April.
    19. Shi, Song & Zhang, Hong & Zhang, Jun, 2022. "The impact of a home purchase restrictions (HPR) policy on the distressed property market in Beijing," Journal of Housing Economics, Elsevier, vol. 58(PB).
    20. Marshall, Graham R., 2013. "Transaction costs, collective action and adaptation in managing complex social–ecological systems," Ecological Economics, Elsevier, vol. 88(C), pages 185-194.

    More about this item

    Keywords

    Transaction costs; Residential market; Security of real estate acquisition;
    All these keywords.

    JEL classification:

    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:71:y:2018:i:c:p:530-539. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.