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Social Aspects Of Managing Homeowner Associations

Abstract

The article calls attention to homeowners associations (HOAs), which are becoming the dominant organizational form of housing development. It focuses on managing HOAs, especially on the social aspects and determinants of the process. The author claims that in order to understand how HOAs function, it is absolutely crucial to take social aspects under consideration. The members’ involvement, relations between the tenants and cultural norms influence the effectiveness of collective action. Those issues are especially important for professional property managers. The aim of the article is to present social aspects of managing HOAs in Poland.

The article presents the results of a study on the social aspects of HOA activity. It examines and compares three organizational models of HOAs in Poland. One of them is self-managing, with an active board of the association that operates without external help; this model requires a high level of volunteer commitment. The second model represents HOAs jointly managed by the board and a professional property manager; this type is heterogeneous – the allocation of tasks and relations between the two players vary according to the level of the board's engagement. The last type represents a HOA that was not able to establish a board, thus its role is played by a professional property manager. In all three types, both organizational structures and management methods depend on the level of the homeowners’ engagement. The study indicates such engagement factors. HOAs are characterized by their typical operations, decision-making processes, information flow, the roles played by the board of the association and professional property manager, the level of volunteer commitment and neighborhood ties. The study also indicates satisfaction factors in terms of the property manager's service.

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Investment Risk in the Context of Price Changes on the Real Estate and Stock Markets

Abstract

The residential real estate market is thought to show a tendency for wide fluctuations in prices, as a result of which price bubbles appear. This element of risk has a direct bearing on investors interested in speculation and those seeking to meet their housing needs. Wide fluctuations in the values of real estate affect the investors’ financial situation in many ways, by determining the possibility of meeting one’s housing needs, reducing or sometimes raising creditworthiness, and by increasing investment risk measured by volatility. Omitting the obvious social dimension of the residential real estate market and concentrating on its financial aspects, the author of the article analyses to what degree wide swings in prices can be recognized as specific to this market. To this end, the volatility of prices in the stock market and in the secondary housing market in Poland is compared. An analysis is performed to establish which of them has higher average volatility measures or rates of return, i.e. which of them is more profitable or secure for investors. Statistical tests are used to find out whether average rates of return or measures of risk are equal or different between the two markets. The results of the research show that the secondary housing market and the stock market differ concerning cumulative average rates of return and standard deviations. In the first of them, they are respectively higher and lower.

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Residential Development Activity In The Polish Legal Setting

Abstract

Residential development in Poland has gone through many changes over the last few decades. In the 1990s, housing cooperatives played a major role among investors in the residential market, whereas developers were only taking their first steps. Today the situation has reversed. In addition to private persons building homes for their own use, developers contribute the most to the supply of new housing. There are many factors that have led to this situation. It is noteworthy that many laws governing the real estate market, the construction market, the development of entrepreneurship, etc. have been either enacted or frequently amended over the last two decades, which may have significantly affected developers’ activities.

The article is an attempt to answer the question about whether and, if so, how strongly changes in the legal setting have influenced residential development activity in Poland.

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Changes in Housing Availability Indicator in Selected Polish Cities in the Years 2006 to 2018

Abstract

Research purpose. Housing availability indicator shows the area of residential real estate possible to purchase for the average monthly wage in the enterprise sector. The research carried out in this paper is aimed at determining the current level of housing availability indicator and its detailed analysis, taking into account the dynamics of changes in 2006 to 2018. This analysis will be carried out for primary and secondary market for selected Polish cities.

Design/Methodology/Approach. Calculations were based on the average transaction prices obtained from the transactional database of residential real estate of the National Bank of Poland and the value of the average monthly remuneration in the enterprise sector obtained partly from statistical data and official journals of the Central Statistical Office.

Findings. The analysis shows that the indicator of housing availability in Poland, despite the visible upward trend, is at a very low level, placing Warsaw at the first place. In addition, the extension of the analysis to the division of the housing market into the primary and secondary market provided more information about shaping the housing availability indicator. Whereas in the primary market in individual cities its value was at a similar level, the secondary market was subject to greater fluctuations.

Originality/Value/Practical implications. This paper is of practical nature. Due to the asymmetry of information on the Polish real estate market, especially regarding housing prices, knowledge about the value of the housing availability indicator in Poland may be exceptionally valuable, especially for people interested in the housing market, including individual investors and market practitioners, as an auxiliary source of information in purchasing decisions of households.

Open access
The Influence Of Financing On The Dynamics Of Housing Prices

Abstract

Real estate market can be thought of as an open, dynamic system. It means that it is able to exchange stimuli with other open systems, and that its state evolves in a way that might be described mathematically. It turns out that two main processes contribute to the overall evolution of the real estate market: long-term, predictable evolution, interrupted by sharp changes of catastrophic origin. In this picture, national housing funds play an important role in supporting the housing finance: on one hand they could either stimulate or suppress the real estate market influencing the availability of the mortgage credit, but on the other hand, they could also help to stabilize prices. In this study, an attempt was made to determine the degree of relationship between the volume of mortgage financing from national housing funds and the dynamics of real estate prices.

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Cycles of the Housing Market in Hungary from the Economic Crisis until Today

Abstract

The main aim of this paper is to identify the underlying reasons for the cyclical nature of the Hungarian housing market, in particular the business cycles, the construction, and market participants’ expectations. Our research was conducted based on analysis of statistical data and of the housing market indices. As a result, it can be stated that cyclic behaviour of the housing market may be explained primarily with business cycles, but state subsidies and mortgages also affect the variations. Accordingly, the increasing lending and the high amount of subsidies can generate a price bubble. The supply of second-hand dwellings looks more flexible compared with that of new ones. However, the expectations of market operators do not have a demonstrable effect on the housing market.

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Analysis of Housing Development Activity in Poland from 2005-2014

Abstract

The growth of both the construction market and the property market depends on various macroeconomic and legal factors, as well as on demographic, institutional, stock and local conditions. The aim of this research was to determine the spatial differentiation, dynamics and determinants of housing development activity in Poland in the context of historical and current legal conditions. This activity was measured, first of all, by the number of construction contracts and the number of completed buildings and dwelling units.

During the research, an attempt was made to establish determinants of construction activity, by analyzing social, demographic and economic factors concerning individual districts. With this aim in view, the study used statistical panel data models, constructed on the basis of data created as a result of combining time series of observations for cross-sectional units.

The results of the research are presented not only in the form of statistical models, but also as a series of cartographic studies, prepared with the application of GIS tools, presenting the current status of housing development activity in Poland.

Open access
Convergence of Housing Markets: European Perspective

Abstract

The housing market is not only an important component of the national economy; it is also a place of meeting the basic and fundamental needs for the functioning of households. The structure of housing markets and their performance are primarily driven by local and national factors. This results mainly from the specificity of real estate (primarily from its immobility), historical factors, economic conditions, as well as from institutional environment. However, in the process of integration of the European economies, one can see a growing trend towards the unification of the housing markets.

The aim of the paper is to assess the scope and scale of convergence processes in the European housing markets. The study covers the main characteristics of the markets, including: the size of the national housing stock and its ownership structure, the importance of residential properties in households’ assets, and the share of housing expenditure in households’ total consumption expenditure. The occurrence of three most popular types of convergence was investigated: beta, sigma, and gamma convergence.

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The Influence of the Technical Condition of a Building on the Property’s Market Value

Abstract

The housed property’s market value is influenced by a set of characteristic qualities, among which is the technical condition of a building. The aim of this paper is to study the influence of the technical condition of a building on the market price of the dwelling units, depending, among others, on the chosen method and the approach to the assessment of the housing wear degree. The analysis has been performed based on the estimation of the market value of an illustrative dwelling unit located in a building erected with the use of prefabricated large panel technology in selected variants. The study is based on data from the period between January and December 2012, which are related to the sale of rights to dwelling units from the secondary market. The information was obtained from a transactional database based on the Partner Data Exchange system with the Walor software.

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Local Factors Influencing The Increase In Development Activity In Selected Cities Of Poland

Abstract

Development activity in Poland began to increase in the 1990's as a result of market-oriented reforms, with the process continuing to this day. The beginnings were, however, not easy due to, among others, the absence of many important legal regulations and the lack of commercial financing. The situation changed in the second half of the 1990's, positively affecting residential development activity. The years 2008 - 2009 were particularly relevant in the course of the studied trend as a sharp increase in the number of completed developer-built residential dwelling units was recorded at this time. After this period, a decline in the number of dwelling units completed by developers was recorded, which indicates its strong dependence on changes in the economic environment. Fluctuations in the number of dwelling units completed by developers were also visible before Poland's accession to the European Union. This means that the diversity of development activity is influenced by many factors.

The available literature generally states that the growth of the real estate market depends on demand. Effective demand for real estate is understood as the number of people who are willing and financially able to buy or rent a particular kind of property at different prices, at a given time and in a given market. Therefore, it can be assumed that local factors have a particular impact on the growth of development activity. However, the question arises as to which of the many local factors are important to the growth of development activity and what factors can be used by local authorities to more effectively stimulate the growth of residential housing in their area.

The aim of the paper is to determine by means of econometric instruments the significance of the impact of individual local factors on development activity in the residential housing market in the largest cities of Poland.

Open access