Club Good Influence on Residential Transaction Prices
28 Pages Posted: 22 Jan 2013
Date Written: 2012
We examine residential real estate transactions in a market where an additional property right to a club good may have an influence on prices. We find that for single-family property, the market capitalizes approximately 50% of the full value of the extra property right. For condominiums, the amount reduces to approximately 25%. While these amounts are positive, they clearly are significantly lower than full value.
Keywords: transaction, property right, single-family, condominiums
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