Urban quality of life evaluation using land price with Status-Quality Trade-Off theory and ecosystem services
Abstract
Urban Quality of Life (UQoL) is the main objective of sustainable development in the urban context. It is now widely recognised as a multidimensional concept. The satisfaction provided by the elements related to accommodation, such as housing and land, greatly contributes to the satisfaction with quality of life. Meanwhile, the UQoL also contributes to housing and land prices in cities. Our review shows that most current studies on this interrelationship are limited to several dimensions of UQoL and their impact on housing or land prices. This article will fill the gap by using the land price as an input for calculating a UQoL index from the viewpoint of the Status-Quality Trade-Off theory and ecosystem services. A case study was conducted in Cau Giay District, Hanoi, Vietnam, to create a map of the UQoL index and investigate the interrelationship UQoL – land price. In an ideal condition, this interrelationship should be positive (high/low UQoL index – high/low land price). However, this research revealed two other negative scenarios: “high UQoL index – low land price”, and “low UQoL index – high land price”. These negative scenarios can bring many business opportunities and therefore be interesting for stakeholders in the real estate market.
Keyword : urban quality of life, land price, interrelationship scenarios, Status-Quality Trade-Off theory, ecosystem services, space syntax, geographic information system
How to Cite
Le, T. P., Hoang, P. H., Nguyen, L. X., Bui, T. N., Pham, T. L., & Tran, B. Q. (2023). Urban quality of life evaluation using land price with Status-Quality Trade-Off theory and ecosystem services. International Journal of Strategic Property Management, 27(2), 92–104. https://doi.org/10.3846/ijspm.2023.19124
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Burkhard, B., Kandziora, M., Hou, Y., & Müller, F. (2014). Ecosystem service potentials, flows and demands – concepts for spatial localisation, indication and quantification. Landscape Online, 34, 1–32. https://doi.org/10.3097/LO.201434
Chattopadhyay, S. (1999). Estimating the demand for air quality: new evidence based on the Chicago housing market. Land Economics, 75(1), 22–38. https://doi.org/10.2307/3146991
Chen, W. Y. (2017). Environmental externalities of urban river pollution and restoration: a hedonic analysis in Guangzhou (China). Landscape and Urban Planning, 157, 170–179. https://doi.org/10.1016/j.landurbplan.2016.06.010
Chung, Y. S., Seo, D., & Kim, J. (2018). Price determinants and GIS analysis of the housing market in Vietnam: the cases of Ho Chi Minh City and Hanoi. Sustainability, 10(12), 4720–4738. https://doi.org/10.3390/su10124720
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Hoang, P. H. (2015). Status-Quality Trade Off theory (SQTO) and its applications in public policies related to urban development and real estate market. https://www.researchgate.net/publication/317335525_status-quality_trade_off_theory_sqto_and_its_applications_in_public_policies_related_to_urban_development_and_real_estate_market
Hoang, P. H., & Nishimura, Y. (1990). The historical environment and housing conditions in the” 36 old streets” quarter of Hanoi. Division of Human Settlements Development, Asian Institute of Technology.
Hoang, P. H., & Wakely, P. (2000). Status, quality and the other trade-off: towards a new theory of urban residential location. Urban Studies, 37(1), 7–35. https://doi.org/10.1080/0042098002276
Kato, H., & Nguyen, L. H. (2009). Land policy and property price in Hanoi, Vietnam. In Proceedings of the Eastern Asia Society for Transportation Studies (pp. 194–209). https://doi.org/10.11175/eastpro.2009.0.194.0
Kim, J., & Goldsmith, P. (2009). A spatial hedonic approach to access the impact of swine production on residential property values. Environmental and Resource Economics, 42, 509–534. https://doi.org/10.1007/s10640-008-9221-0
Klimanova, O. A., & Illarionova, O. I. (2020). Green infrastructure indicators for urban planning: applying the integrated approach for Russian largest cities. Geography, Environment, Sustainability, 13(1), 251–259. https://doi.org/10.24057/2071-9388-2019-123
Kohlhase, J. (1991). The impact of toxic waste sites on housing values. Journal of Urban Economics, 30(1), 1–26. https://doi.org/10.1016/0094-1190(91)90042-6
Komarova, V. (2009). Valuing environmental impact of air pollution in Moscow with hedonic prices. International Journal of Environmental and Ecological Engineering, 3(9), 1756–1763.
Le, T. P., Pham, T. L., & Tran, B. Q. (2019, April 22–26). Application of space syntax and GIS in assessment of accessibility factors affecting urban residential land value (a case study in Trung Hoa – Nhan Chinh area, Hanoi City) [Paper presentation]. FIG Working Week 2019, Geospatial information for a smarter life and environmental resilience, Hanoi, Vietnam.
Liebelt, V., Bartke, S., & Schwarz, N. (2018). Hedonic pricing analysis of the influence of urban green spaces onto residential prices: the case of Leipzig, Germany. European Planning Studies, 26(1), 133–157. https://doi.org/10.1080/09654313.2017.1376314
Liu, J., Wu, D., Hidetosi, F., & Gao, W. (2015). Investigation and ananlysis of urban spatial structure around the train stations in Kitakyushu by using space syntax and GIS. Open Journal of Civil Engineering, 5(1), 97–108. https://doi.org/10.4236/ojce.2015.51010
Malkina-Pykh, I. G., & Pykh, Y. A. (2008). Quality-of-life indicators at different scales: theoretical background. Ecological Indicators, 8(6), 854–862. https://doi.org/10.1016/j.ecolind.2007.01.008
Marans, R. W., & Stimson, R. J. (2011). Chapter 1: an overview of quality of urban life. In R. W. Marans & R. J. Stimson (Eds.), Investigating quality of urban life: theory, methods, and empirical research (Vol. 45, pp. 1–29). Springer. https://doi.org/10.1007/978-94-007-1742-8_1
Morales, J., Flacke, J., & Zevenbergen, J. (2019). Modelling residential land values using geographic and geometric accessibility in Guatemala City. Environment and Planning B: Urban Analytics and City Science, 46(4), 751–776. https://doi.org/10.1177/2399808317726332
Oliver, M. A., & Webster, R. (1990). Kriging: a method of interpolation for geographical information systems. International Journal of Geographical Information Systems, 4(3), 313–332. https://doi.org/10.1080/02693799008941549
Panduro, T. E., & Veie, K. L. (2013). Classification and valuation of urban green spaces – a hedonic house price valuation. Landscape and Urban Planning, 120, 119–128. https://doi.org/10.1016/J.LANDURBPLAN.2013.08.009
Pickett, S. T. A., & Grove, J. M. (2009). Urban ecosystems: what would Tansley do? Urban Ecosystem, 12(1), 1–8. https://doi.org/10.1007/s11252-008-0079-2
Saaty, T. L. (2004). Fundamentals of the analytic network process – dependence and feedback in decision-making with a single network. Journal of Systems Science and Systems Engineering, 13(2), 129–157. https://doi.org/10.1007/s11518-006-0158-y
Saaty, T. L. (2006). The analytic network process. In F. S. Hillier (Ed.), Decision making with the analytic network process: Economic, political, social and technological applications with benefits, opportunities, costs and risks (pp. 1–26). Springer. https://doi.org/10.1007/0-387-33987-6_1
Savills. (2020). Vietnam market brief 2019 report. https://pdf.savills.asia/asia-pacific-research/vietnam-research/quarterly-market-reports---english/vietnam-brief-2019h2e.pdf
Vietnam Ministry of Construction. (2019). Circular No. 22/2019/TT-BXD of Vietnam Ministry of Construction of 31 December 2019 on issuance of national technical regulation on construction planning. https://thuvienphapluat.vn/van-ban/Xay-dung-Do-thi/Thong-tu-22-2019-TT-BXD-Quy-chuan-ky-thuat-quoc-gia-ve-Quy-hoach-xay-dung-434735.aspx
Vietnam Ministry of Natural Resources and Environment. (2021). Official Dispatch No. 6877/BTNMT-TCMT of Vietnam Ministry of Natural Resources and Environment of 11 November 2021 on announcing the report on the State of the National Environment for the 2016–2020 period. https://moit.gov.vn/upload/2005517/fck/files/20211108_Bao_cao_HTMT_2016-2020_F_a4980.pdf
Bagnoli, C., & Smith, H. C. (1998). The theory of fuzzy logic and its application to real estate valuation. Journal of Real Estate Research, 16(2), 169–199. https://doi.org/10.1080/10835547.1998.12090941
Berhie, G., & Haq, S. (2017). Land use and transport mode choices: Space Syntax analysis of American cities. Enquiry, 14(1), 1–22. https://doi.org/10.17831/enq:arcc.v14i1.429
Bui, T. Q., Do, H. N., & Hoang, P. H. (2017). House price estimation in Hanoi using Artificial Neural Network and Support Vector Machine: in considering effects of status and house quality [Paper presentation]. FIG Working Week 2017, Surveying the world of tomorrow - From digitalisation to augmented reality, Helsinki, Finland.
Burinskienė, M., Rudzkienė, V., & Venckauskaitė, J. (2011). Effects of quality of life on the price of real estate in Vilnius city. International Journal of Strategic Property Management, 15(3), 295–311. https://doi.org/10.3846/1648715X.2011.617857
Burkhard, B., Kandziora, M., Hou, Y., & Müller, F. (2014). Ecosystem service potentials, flows and demands – concepts for spatial localisation, indication and quantification. Landscape Online, 34, 1–32. https://doi.org/10.3097/LO.201434
Chattopadhyay, S. (1999). Estimating the demand for air quality: new evidence based on the Chicago housing market. Land Economics, 75(1), 22–38. https://doi.org/10.2307/3146991
Chen, W. Y. (2017). Environmental externalities of urban river pollution and restoration: a hedonic analysis in Guangzhou (China). Landscape and Urban Planning, 157, 170–179. https://doi.org/10.1016/j.landurbplan.2016.06.010
Chung, Y. S., Seo, D., & Kim, J. (2018). Price determinants and GIS analysis of the housing market in Vietnam: the cases of Ho Chi Minh City and Hanoi. Sustainability, 10(12), 4720–4738. https://doi.org/10.3390/su10124720
Clapham, D., Foye, C., & Christian, J. (2017). The concept of subjective well-being in housing research. Housing, Theory and Society, 35(3), 261–280. https://doi.org/10.1080/14036096.2017.1348391
Cosacov, N. (2019). Residential choices. In A. M. Orum (Ed.), The Wiley-Blackwell encyclopedia of urban and regional studies (pp. 1–5). John Wiley & Sons. https://doi.org/10.1002/9781118568446.eurs0268
Crompton, J. L. (2001). The impact of parks on property values: a review of the empirical evidence. Journal of Leisure Research, 33(1), 1–31. https://doi.org/10.1080/00222216.2001.11949928
Davoudi, S., Gunn, Z., Madanipour, A., Milder, J., Stead, D., & Sturzaker, J. (2009). Development process, urban form and metabolism, understanding the interface between actors, institutions, structures and mechanisms. Newcastle upon Tyne. http://www.sume.at/project_downloads
Department of Natural Resources and Environment of Cau Giay District. (2018). Report of environmental protection work. Hanoi, Vietnam.
Diener, E. (1994). Assessing subjective well-being: progress and opportunities. Social Indicators Research, 31(2), 103–157. https://doi.org/10.1007/BF01207052
Din, H. S. E., Shalaby, A., Farouh, H. E., & Elariane, S. A. (2013). Principles of urban quality of life for a neighborhood. HBRC Journal, 9(1), 86–92. https://doi.org/10.1016/j.hbrcj.2013.02.007
Garau, C., & Pavan, V. (2018). Evaluating urban quality: indicators and assessment tools for smart sustainable cities. Sustainability, 10, 18. https://doi.org/10.3390/su10030575
Green, S. B. (1991). How many subjects does it take to do a regression analysis. Multivariate Behavioral Research, 26(3), 499–510. https://doi.org/10.1207/s15327906mbr2603_7
Haines-Young, R., & Potschin, M. (2018). Common International Classification of Ecosystem Services (CICES) V5.1 and guidance on the application of the revised structure. https://.cices.eu
Hillier, B. (2007). Space is the machine. Space Syntax Ltd.
Hillier, B., Burdett, R., Peponis, J., & Penn, A. (1987). Creating life: or, does architecture determine anything? Architecture & Comportement/Architecture & Behaviour, 3(3), 233–250.
Hoang, P. H. (2015). Status-Quality Trade Off theory (SQTO) and its applications in public policies related to urban development and real estate market. https://www.researchgate.net/publication/317335525_status-quality_trade_off_theory_sqto_and_its_applications_in_public_policies_related_to_urban_development_and_real_estate_market
Hoang, P. H., & Nishimura, Y. (1990). The historical environment and housing conditions in the” 36 old streets” quarter of Hanoi. Division of Human Settlements Development, Asian Institute of Technology.
Hoang, P. H., & Wakely, P. (2000). Status, quality and the other trade-off: towards a new theory of urban residential location. Urban Studies, 37(1), 7–35. https://doi.org/10.1080/0042098002276
Kato, H., & Nguyen, L. H. (2009). Land policy and property price in Hanoi, Vietnam. In Proceedings of the Eastern Asia Society for Transportation Studies (pp. 194–209). https://doi.org/10.11175/eastpro.2009.0.194.0
Kim, J., & Goldsmith, P. (2009). A spatial hedonic approach to access the impact of swine production on residential property values. Environmental and Resource Economics, 42, 509–534. https://doi.org/10.1007/s10640-008-9221-0
Klimanova, O. A., & Illarionova, O. I. (2020). Green infrastructure indicators for urban planning: applying the integrated approach for Russian largest cities. Geography, Environment, Sustainability, 13(1), 251–259. https://doi.org/10.24057/2071-9388-2019-123
Kohlhase, J. (1991). The impact of toxic waste sites on housing values. Journal of Urban Economics, 30(1), 1–26. https://doi.org/10.1016/0094-1190(91)90042-6
Komarova, V. (2009). Valuing environmental impact of air pollution in Moscow with hedonic prices. International Journal of Environmental and Ecological Engineering, 3(9), 1756–1763.
Le, T. P., Pham, T. L., & Tran, B. Q. (2019, April 22–26). Application of space syntax and GIS in assessment of accessibility factors affecting urban residential land value (a case study in Trung Hoa – Nhan Chinh area, Hanoi City) [Paper presentation]. FIG Working Week 2019, Geospatial information for a smarter life and environmental resilience, Hanoi, Vietnam.
Liebelt, V., Bartke, S., & Schwarz, N. (2018). Hedonic pricing analysis of the influence of urban green spaces onto residential prices: the case of Leipzig, Germany. European Planning Studies, 26(1), 133–157. https://doi.org/10.1080/09654313.2017.1376314
Liu, J., Wu, D., Hidetosi, F., & Gao, W. (2015). Investigation and ananlysis of urban spatial structure around the train stations in Kitakyushu by using space syntax and GIS. Open Journal of Civil Engineering, 5(1), 97–108. https://doi.org/10.4236/ojce.2015.51010
Malkina-Pykh, I. G., & Pykh, Y. A. (2008). Quality-of-life indicators at different scales: theoretical background. Ecological Indicators, 8(6), 854–862. https://doi.org/10.1016/j.ecolind.2007.01.008
Marans, R. W., & Stimson, R. J. (2011). Chapter 1: an overview of quality of urban life. In R. W. Marans & R. J. Stimson (Eds.), Investigating quality of urban life: theory, methods, and empirical research (Vol. 45, pp. 1–29). Springer. https://doi.org/10.1007/978-94-007-1742-8_1
Morales, J., Flacke, J., & Zevenbergen, J. (2019). Modelling residential land values using geographic and geometric accessibility in Guatemala City. Environment and Planning B: Urban Analytics and City Science, 46(4), 751–776. https://doi.org/10.1177/2399808317726332
Oliver, M. A., & Webster, R. (1990). Kriging: a method of interpolation for geographical information systems. International Journal of Geographical Information Systems, 4(3), 313–332. https://doi.org/10.1080/02693799008941549
Panduro, T. E., & Veie, K. L. (2013). Classification and valuation of urban green spaces – a hedonic house price valuation. Landscape and Urban Planning, 120, 119–128. https://doi.org/10.1016/J.LANDURBPLAN.2013.08.009
Pickett, S. T. A., & Grove, J. M. (2009). Urban ecosystems: what would Tansley do? Urban Ecosystem, 12(1), 1–8. https://doi.org/10.1007/s11252-008-0079-2
Saaty, T. L. (2004). Fundamentals of the analytic network process – dependence and feedback in decision-making with a single network. Journal of Systems Science and Systems Engineering, 13(2), 129–157. https://doi.org/10.1007/s11518-006-0158-y
Saaty, T. L. (2006). The analytic network process. In F. S. Hillier (Ed.), Decision making with the analytic network process: Economic, political, social and technological applications with benefits, opportunities, costs and risks (pp. 1–26). Springer. https://doi.org/10.1007/0-387-33987-6_1
Savills. (2020). Vietnam market brief 2019 report. https://pdf.savills.asia/asia-pacific-research/vietnam-research/quarterly-market-reports---english/vietnam-brief-2019h2e.pdf
Vietnam Ministry of Construction. (2019). Circular No. 22/2019/TT-BXD of Vietnam Ministry of Construction of 31 December 2019 on issuance of national technical regulation on construction planning. https://thuvienphapluat.vn/van-ban/Xay-dung-Do-thi/Thong-tu-22-2019-TT-BXD-Quy-chuan-ky-thuat-quoc-gia-ve-Quy-hoach-xay-dung-434735.aspx
Vietnam Ministry of Natural Resources and Environment. (2021). Official Dispatch No. 6877/BTNMT-TCMT of Vietnam Ministry of Natural Resources and Environment of 11 November 2021 on announcing the report on the State of the National Environment for the 2016–2020 period. https://moit.gov.vn/upload/2005517/fck/files/20211108_Bao_cao_HTMT_2016-2020_F_a4980.pdf