World of Real Estate Journal 114 (4/2020) - Table of Content

1) Krzysztof Nowak - Bidirectional Dependencies between the Residential Market in Voivodeship Cities and the Mortgage Loans Market in Poland DOWNLOAD

2) Mateusz Szczepek - Changes in the Housing Market in Cracow During COVID-19 Pandemics DOWNLOAD

3) Teodor Skotarczak - The Phenomenon of an Overreaction on the Housing Market DOWNLOAD

4) Aneta Zaremba, Małgorzata Blaszke - Analysis of the Housing Market in the Coastal Belt of the West Pomeranian Voivodeship DOWNLOAD

5) Katarzyna Kania, Katarzyna Najbar - The Significance of Cooperation between the Developer and the Real Estate Manager in Light of Agency Theory DOWNLOAD

SUMMARIES

Krzysztof Nowak - Bidirectional Dependencies between the Residential Market in Voivodeship Cities and the Mortgage Loans Market in Poland

Purpose – The purpose of the article is to study the relationships between the residential market and the mortgage market in Poland. The main aim of the paper is to verify if direct dependence between the dynamics of prices of secondary residential premises in voivodeship cities and both the number and the value of newly granted mortgage loans, can be found in Poland. Moreover, we are to investigate if there is only one direction of this dependence or it can be bidirectional.
Design/methodology/approach – To verify the two hypotheses stated four econometric models were formulated based on the basic regression and vector auto-regression approach. Also, the Granger causality tests were conducted.
Findings – The dependencies between the dynamics of the price of secondary housing in voivodeship cities and both the number and the value of newly granted mortgage loans were indicated in all three parts of the study. However, the results regarding the direction of the relationships are not unambiguous. As far as the basic regression models and the Granger causality tests are concerned only one direction of the dependency is found. In turn, the VAR models indicate the bidirectional dependencies between the residential market and the mortgage loans market.
Research limitations – The data used in the study covers the period starting in the first quarter of 2007 and ending in the second quarter of 2020. The period includes two peaks of the residential market, one downturn phase, and one phase of the gradual growth of the residential market cycle. This may imply that the results may indicate the specificity of the relationship between the residential market and the mortgage market, typical for the peak and downturn phases of the cycle.
Research implications – The obtained results may serve in the future as a basis for modelling the residential market in Poland.  

Keywords:  
 residential market; mortgage market; housing price; the vector auto-regression; the Granger causality test

JEL codes:  
 R30, R31

Article type: 
   research article

CITATION (APA):
Nowak, K. (2021). Bidirectional Dependencies between the Residential Market in Voivodeship Cities and the Mortgage Loans Market in Poland. World of Real Estate Journal, 115(1), 4-19.

Mateusz Szczepek - Changes in the Housing Market in Cracow During COVID-19 Pandemics

Purpose - The objective of the paper is to assess the changes in the Cracow housing market in pandemic times, comparing Q12020 and Q12021.
Methodology - To access the changes in the residential real estate market in Cracow, details of 21,115 listings have been collected from the listing website, Otodom. The data has been cleansed in terms of duplicate observations, missing data, and outliers. The data has been summarized in regards to the number of listings, average listing price, and average floor area.
Findings - The Cracow residential market has been experienced with the change of the number of offers, average price, and average floor area. The severity of those changes differs in each submarket. The rental market has shrunk, the average listing price and the average floor area of an apartment dropped. The most impacted regions are those near the city centre. The primary sales market has been blocked, many investments have been put on hold, therefore the number of offers dropped. However, the prices on the market keep rising. The average floor area of apartments has noted a slight decline. The secondary sales market has been more active than the previous ones. The number of offers doubled but on the other hand, average prices and average floor area of apartments declined.
Research limitations - The conducted study has been performed based on listings, then those data do not reflect real events occurring on the market. Therefore, analysis formed on transaction prices is needed. Additionally, using average as a metric may lead to bias as offered apartment structure differs between subperiods.
Research implications - The study confirmed that changes are taking place in the housing market in Cracow in the COVID-19 times.  It should be noted that it is not determined if those changes are permanent, therefore further studies are required.

Keywords:    housing market; COVID-19; housing preferences; housing prices

JEL codes:    D10, L85, O18, R31

Article type:    research paper

CITATION (APA): Szczepek, M. (2021). Changes in the Housing Market in Cracow During COVID-19 Pandemics. World of Real Estate Journal, 115(1), 20-47.

Teodor Skotarczak - The Phenomenon of an Overreaction on the Housing Market

Purpose - The aim of the research is to verify the thesis on the occurrence of the phenomenon of over-reaction on the real estate market of investment premises and the accompanying correction of asset prices, as well as to calculate the rate of return using a contrarian investment strategy.
Design/methodology/approach - The study considered transaction prices and the number of transactions obtained by the National Bank of Poland and reported in the Real Estate Market Analysis and Monitoring System (AMRON).
Findings - The number of transactions involving investment premises for residential purposes changed little in the period under review. This was due to the low supply and maintenance of real estate as stable security for capital and quick access to invested funds due to the high liquidity of these premises.
Research limitations - A limitation of the study was the need to use two different databases, which although they should be compatible revealed methodological differences.
Research implications - The research conducted implies the need for broader research on the impact of location on the real estate market in Poland in particular investment areas.

Keywords:    property market; over-reaction phenomenon; residential property

JEL codes:    R31, R33

Article type:    research article

CITATION (APA): Skotarczak, T. (2021). The Phenomenon of an Overreaction on the Housing Market. World of Real Estate Journal, 115(1), 48-67.

Aneta Zaremba, Małgorzata Blaszke - Analysis of the Housing Market in the Coastal Belt of the West Pomeranian Voivodeship

Purpose - The aim was to present the housing real estate market's situation in the coastal zone and define forms of further development of the coastal real estate market.
Design/methodology/approach - The research methodology was based on statistical methods; the changes in both prices and the number of transactions over time were examined. Graphical and tabular-descriptive techniques were used to present the research results.
Findings - The unit price of residential premises in the coastal strip is determined primarily by the location rent. The location is the most important factor that affects the prices of holiday and weekend apartments.
Research implications - The research results became a contribution to the commencement of wider research on the impact of location on the real estate market in Poland.

Keywords:    housing market; house prices; Poland; coastal real estate

JEL codes:    R29, R39

Article type:    research article

CITATION (APA): Zaremba, A., Blaszke, M. (2021). Analysis of the Housing Market in the Coastal Belt of the West Pomeranian Voivodeship. World of Real Estate Journal, 115(1), 68-79.

Katarzyna Kania, Katarzyna Najbar - The Significance of Cooperation between the Developer and the Real Estate Manager in Light of Agency Theory

Purpose - The paper discusses the problem of the significance of cooperation between both entities in respect of the implementation of projects which will make it possible to appropriately arrange their cooperation, thus enabling them to achieve the assumed objectives of their activity.
Design/methodology/approach - The research was conducted among selected real estate development companies.   
Findings -  Taking into consideration different objectives of developers' and real estate management firms' activity, we should provide for different relationships of those entities with the final recipient of developer products, namely the real estate user.
Research implications - From a theoretical perspective, the relations between participants of ventures are explained by agency theory, which treats an enterprise as a network of contracts concluded between individual participants of a given venture. It concerns attitudes of the stakeholders of a given project, which depend, among others, on benefits they want to gain.

Keywords:    developer; real estate manager; agency theory; investment process

JEL codes:    L14, L21, L85

Article type:    review article

CITATION (APA):  Kania, K., Najbar, K. (2021). The Significance of Cooperation between the Developer and the Real Estate Manager in Light of Agency Theory. World of Real Estate Journal, 115(1), 80-98.