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Leasehold Status and Freehold Transactions Effect on Apartment Prices: A Quantitative Study on Cooperative Apartments in Stockholm Municipality
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.
2023 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Tomträtten och ett friköps påverkan på lägenhetspriser (Swedish)
Abstract [en]

By using transaction data of sold cooperative apartments in the municipality of Stockholm,Sweden, during the year 2021, we find that leasehold status has a statistically significant impacton apartment prices in the inner city of -3.6% and in the outer city of -6.8% when controllingfor conventional apartment characteristics and location in a hedonic model. We also find theremaining time of the ground leasehold contract to have a statistically significant impact of0.42% per additional year that remains until renegotiation. We also find that the impact ofground leasehold differs depending on location. Further, we find that freehold transactionswould impact the prices of apartments differently in the inner city compared to the outer city.Consequently, the necessary increases in the monthly fees to enable a freehold transaction aregreater in the inner city compared to the outer city in average in a scenario analysis. We add toprevious research by using more recent data and a wider geographical area. Last, we simulatethe impact on apartment prices if a housing cooperative bought the land. We find considerablevariation among housing cooperatives on leased land, for when a purchase would be profitable.

Abstract [sv]

Med hjälp av transaktionsdata av sålda bostadsrättslägenheter i Stockholms kommun, Sverige,under år 2021 finner vi att tomträttsstatusen har en statistiskt signifikant påverkan pålägenhetspriser i innerstaden om -3.6% och i ytterstaden om -6.8% när vi kontrollerar förkonventionella attribut och läge i en hedonistisk modell. Vi finner även att den kvarvarandetiden på tomträttsavtalet har en statistisk signifikant påverkan om 0.42% per kvarvarande år tillomförhandling av tomträttsavtalet och att påverkan av tomträttsstatusen varierar beroende påläge. Vidare finner vi att friköp påverkar bostadsrättspriserna olika i innerstaden och iytterstaden samt att den nödvändiga höjningen av månadsavgiften vid friköp, i snitt är högre iinnerstaden jämfört med ytterstaden genom en scenarioanalys. Genom att använda data från ensenare tidperiod och större geografiskt område, tar vi vid där tidigare studier lämnat.Scenarioanalysen bidrar ytterligare till kunskapen i området genom att simulera effekten pålägenheter av att bostadsrättsföreningen köper marken. Vi finner stor variation i hur lönsamtett köp skulle vara.

Place, publisher, year, edition, pages
2023. , p. 57
Series
TRITA-ABE-MBT ; 23334
Keywords [en]
Site leasehold, Freehold transaction, Housing cooperative, Stockholm municipality, Hedonic model
Keywords [sv]
Tomträtt, Friköp, Bostadsrättsförening, Stockholm kommun, Hedonistisk modell
National Category
Civil Engineering
Identifiers
URN: urn:nbn:se:kth:diva-329558OAI: oai:DiVA.org:kth-329558DiVA, id: diva2:1772228
External cooperation
Stockholm Municipality
Supervisors
Examiners
Available from: 2023-06-21 Created: 2023-06-21 Last updated: 2023-06-21Bibliographically approved

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