PRICING OF REGIONAL HOUSING MARKETS, THEORETICAL AND APPLIED ASPECTS

Zapototska V.

Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

Abstract:

The article covers the theoretical and applied principles of price formation for housing within regional markets. In research process was found that the development of the regional housing market is subordinated to the action of regional development theories and general economic theories (cost and price).

Among the spatial theories the influence of theories of agriculture placing and industry, central places, geographical location        of economy, the theories of “growth poles”, “diffusion of innovations”, “center-periphery theory”, “city-centrality”. Economic theories are theories which actually are based on market process, formation of free market and theories of market`s processes regulation. It is proved that such theories do joint influence on pricing and the pricing mechanisms. It is proved that such theories do common influence on price formation and the pricing mechanisms. It was found, that pricing is an objective process, for determining and establishing prices within the region, which occurs primarily at regional and local level, touching individual regional market and is subjected to regulation by the state.

It was established, that the formation of regional housing markets are too difficult process and are indicated by a  large number of factors influencing to the processes of its formation. Through theoretical generalization, we identified six groups of factors that have a direct and indirect impact on supply and demand on the regional housing market.

To the first group of factors attributed territorial housing market factors, among which are selected location of the property, infrastructure providing of this territory and ecological situation. The second group of factors includes quality characteristics of housing, among which are: construction materials; working characteristics and wearing out; architectural and planning features of the property. The third group is represented by economic factors, which include income of population, income of developers or property developers; the overall level of development of a region or settlement; investment factor; mortgage factor speculative factor and construction industry development in general. Group of demographic-settlement factors include an assessment of the demographic situation, labor market in the region, migration processes, the system of settlement and security of this area. Legislative and legal factors manifested through the state and regional policy in the housing market, housing programs, taxation processes, lending insurance and in the housing market. Social and psychological factors include  behavior and preferences of consumers, price expectations, seasonality, ethnic or religious characteristics of the region.

Here are presented the dynamics and confirmed differentiation in housing prices within the largest cities in Ukraine and in the city of Kyiv.

Keywords:

housing, housing market, factors of pricing, price trends, property costs

Language:

ukrainian

DOI: http://doi.org/10.17721/1728-2721.2017.66.23

References:

1. Official site of Global House price decline spreads around the world as investors wait to pounce [An electronic resource] − The access mode: http://www.knightfrank.com.ua/
2. Official site of Department of Housing and Urban Development [An electronic resource] – The access mode: http://www.hud.gov/
3. Palekha Yu. M. Ekonomiko-heohrafichni aspekty formuvannya vartosti terytoriy naselenykh punktiv / Yu. M. Palekha. – K. : Profi, 2006. – 294s.
4. Herasymchuk Z.V. Konkurentospromozhnist’ rehionu: teoriya, metodolohiya, praktyka: [Monohrafiya] / Z.V. Herasymchuk, L.L. Koval’s’ka. – Luts’k: Nadstyr”ya, 2008. – 245 s.
5. Novoselov A.S. Teoriya regionalnyih ryinkov: [ucheb.] / A.S. Novoselov. – Rostov-na-Donu: Feniks, 2002. – 448 s.
6. Barnz V. Novi rehional’ni ekonomiky / Vil’yam Barnz, Larri Ledebur; [per. z anhl. A. Pekhnyk]. – L’viv: Litopys, 2003. – 196 s.
7. Varnaliy Z.S. Rehiony Ukrayiny: problemy ta priorytety sotsial’no-ekonomichnoho rozvytku: [Monohrafiya] / Z.S. Varnaliy. – K.: Znannya, 2005. – 498 s.
8. Hrytsenko A. Evolyutsiya vartosti / A. Hrytsenko // Ekonomika Ukrayiny. – 2001. – #4. – S. 45-55.
9. Smit A. Dobrobut natsiy. Doslidzhennya pro pryrodu ta prychyny dobrobutu natsiy / A. Smit; [per. z anhl.]. – K.: “Port – Royal”, 2001. – 590 s.
10. Rikardo D. Sochineniya. Nachala politicheskoy ekonomii i nalogovogo oblozheniya / D. Rikardo; [per. s angl.] pod red. M.N. Smit. – Tom 1. – M.: Gospolitizdat, 1955. – 358 s.
11. Blauh M. Ekonomichna teoriya v retrospektyvi / M. Blauh; [per. z anhl. I.Dzyub]. – K.: Vyd-vo Solomiyi Pavlychko “Osnovy”, 2001. – 670 s.
12. Shevchenko A. Marzhynalizm: istoriya, teoriya, praktyka / A. Shevchenko, V. Zhuchenko, S. Nikolayenko // Ekonomika Ukrayiny. – 1999. – #8. – S. 55-61.
13. Ukrayins’ka ekonomichna dumka: [khrestomatiya] / Uporyad. S.M. Zlupko. – K.: Znannya, 2007. – 694 s.
14. Fridman Dzh. Analiz i otsenka prinosyaschey dohod nedvizhimosti / Dzh. Fridman, Orduey Nik; [per. s angl.]. – M.: “Delo Ltd”, 1995. – 480 s.
15. Asaul A.M. Ekonomika nerukhomosti: [pidruchnyk] / A.M. Asaul, I.A. Bryzhan’, V.Ya. Chevhanova. – K.: “Libra”, 2004. – 304 s.
16. Simionov Yu. F. Ekonomika nedvizhimosti / Yu. F. Simionov, L. B. Domrachev. – M. : MART, 2004. – 224 s.
17. Kutilin P. A. Geograficheskie faktoryi differentsiatsii stoimosti zemel gorodskih poseleniy Moskovskoy oblasti : avtoref. dis. na soiskanie uchen. stepeni kand. geogr. nauk : spets. 25.00.24 “Ekonomicheskaya, sotsialnaya, politicheskaya i rekreatsionnaya geografiya” / P. A. Kutilin – M., 2007. – 21 s.
18. Palekha Yu. M. Vplyv heohrafichnykh chynnykiv na formuvannya vartosti terytoriy naselenykh punktiv: kontseptual’ni zasady doslidzhennya / Yu. M. Palekha // Ukrayins’kyy heohrafichnyy zhurnal. – 2006. – #1. – S. 46–50
19. Gurov S. A. Faktoryi tsenoobrazovaniya ryinka nedvizhimosti: geograficheskie aspektyi / S. A. Gurov // Kultura narodov Prichernomorya. – 2006. – #85. – S. 40-43.
20. Taylor J. Spatial disparities in the impact of the 1990-92 recession: an analysis of UK counties / J. Taylor, S. Bradley // Oxford bull. of economics a. statistics. – Oxford, 1994. – Vol. 56, № 4. – P. 367-382.
21. Heyets’ V.M. Modeli i metody sotsial’no-ekonomichnoho prohnozuvannya / V.M. Heyets’, T.S. Klebanova, O.I. Chernyak ta in. – Kh.: VD “INZhEK”, 2008. – 396 s.
22. Nerukhomist’ v Ukrayini: kupuvaty chy ni // Ekspres. – 23-24 sichnya 2007. – S. 15.
23. Mantsevych Yu.M. Vplyv sotsial’noyi ta inzhenerno-transportnoyi infrastruktury na rozvytok zhytlovoho hospodarstva / Yu.M. Mantsevych // Ekonomika ta derzhava. – 2008. – # 3. – S. 15–18.

Download (.pdf)

Suggested citation:

Zapototska V. (2017) Pricing of regional housing markets, theoretical and applied aspects. Visnyk Kyivskogo natsionalnogo universytetu, Geografiya [Bulletin of Taras Shevchenko National University of Kyiv, Geography], 1-2 (66-67), 138-146 (in Ukrainian, abstr. in English).