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The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China

1
School of Resource and Environmental Sciences, Wuhan University, 129Luoyu Road, Wuhan 430079, China
2
Department of Regional Planning and Management, School of Resources and Environmental Engineering, Wuhan University of Technology, Wuhan 430070, China
3
Key Laboratory of Geographic Information System, Ministry of Education, Wuhan University, 129Luoyu Road, Wuhan 430079, China
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(2), 471; https://doi.org/10.3390/su11020471
Received: 25 November 2018 / Revised: 8 January 2019 / Accepted: 11 January 2019 / Published: 17 January 2019
(This article belongs to the Section Human Geography and Social Sustainability)
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Abstract

Mixed-use development is theoretically considered to enhance the residential value of an area. However, limited empirical research has focused on European and North American cities. HOPSCA is a real estate project that integrates hotels, offices, parks, shopping malls, conference centers, and apartments. As an important mixed-use development project in Chinese cities, HOPSCA is designed to improve the quality of urban life and to enhance the residential value of an area. Few studies have explicitly examined the effect of HOPSCA on residential property values, let alone linked this question to particular types of HOPSCA. To bridge this research gap, we selected Wuhan City in China as a case study to explore the effects of HOPSCA on residential property values. Specifically, we used the potential model to quantify the effects of HOPSCA and used the geographically weighted regression (GWR) method to estimate the relationship between HOPSCA variables and residential property values. The results are as follows: (1) the effects of HOPSCA on residential property values are statistically significant with positive and negative effects. The balanced-development HOPSCA generated the greatest effects, with the highest premium of 10.76% placed on residential properties. Moderate price premiums of 3.57% and 1.83% were generated under the influence of the commerce-oriented HOPSCA and housing-oriented HOPSCA, respectively. By contrast, the business-oriented HOPSCA exerted a negative effect on residential property (−2.43%). (2) Significant spatial heterogeneity exists on the effect of HOPSCA on residential property values. The results showed that the influence of different types of HOPSCA, viz. the higher the compatibility between the HOPSCA type and the socioeconomic context of Wuhan, the higher the premium captured by residential properties within the city areas. HOPSCA benefits the improvement of the quality of urban life, which promotes urban development. For policy makers and real estate developers, our findings suggest that matching the development types and the spatial layouts of HOPSCA with the regional socioeconomic contexts is critical for enhancing the value performance of such projects. View Full-Text
Keywords: HOPSCA; mixed-use development; residential property values; the potential model; GWR; Wuhan HOPSCA; mixed-use development; residential property values; the potential model; GWR; Wuhan
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Qin, Z.; Yu, Y.; Liu, D. The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China. Sustainability 2019, 11, 471.

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