We estimate the effect of the Dutch-German border on house prices. In the last 40 years the development of house prices in the Netherlands and Germany has been substantially different. While the Netherlands have been hit by two real estate cycles,...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
DS 10 (511)
Inter-library loan:
No inter-library loan
We estimate the effect of the Dutch-German border on house prices. In the last 40 years the development of house prices in the Netherlands and Germany has been substantially different. While the Netherlands have been hit by two real estate cycles, prices in Germany have been extraordinary stable. We develop a model for studying house prices and the impact of the border. Then we study the development of Dutch house prices close to the German border in the period 1985-2013. Next, combining German and Dutch real estate datasets, we study the jump in the housing price occurring at the border. Using different estimation strategies, we find that ask prices of comparable housing drop by about 16% when one crosses the Dutch-German border. Given that price discounts from the last observed asking price are substantially larger in Germany, we interpret our findings as indicating the willingness of Dutch households to pay up to 26% higher house prices to live among the Dutch. Dieses Papier untersucht den Effekt der deutsch-niederländischen Grenze auf Häuserpreise. In den vergangenen 40 Jahren haben sich die Immobilienpreise in Deutschland und den Niederlanden sehr unterschiedlich entwickelt. Während in den Niederlanden zwei Immobilienzyklen zu beobachten waren, sind die Preise in Deutschland stabil geblieben. In diesem Papier entwickeln wir ein Modell, um den Effekt einer Grenze auf Hauspreise zu untersuchen. Wir untersuchen die Immobilienpreisentwicklung in den Niederlanden im deutsch-niederländischen Grenzgebiet im Zeitraum von 1985-2013. Desweiteren untersuchen wir durch Kombination eines deutschen und eines niederländischen Immobilienpreisdatensatzes, inwieweit es einen Preissprung an der Grenze gibt. Unter Verwendung unterschiedlicher Schätzmethoden finden wir, dass Angebotspreise bei Überschreiten der Grenze nach Deutschland um etwa 16% abnehmen. Da der Preisabstand zwischen Angebots- und Transaktionspreis in Deutschland deutlich größer ist, interpretieren wir dieses Ergebnis dahingehend, dass niederländische Haushalte bereit sind, bis zu 26% höhere Hauspreise in Kauf zu nehmen, um in den Niederlanden zu wohnen.
We estimate the effect of the Dutch-German border on house prices. In the last 40 years the development of house prices in the Netherlands and Germany has been substantially different. While the Netherlands have been hit by two real estate cycles,...
more
ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signature:
DS 432 (2014,141)
Inter-library loan:
No inter-library loan
We estimate the effect of the Dutch-German border on house prices. In the last 40 years the development of house prices in the Netherlands and Germany has been substantially different. While the Netherlands have been hit by two real estate cycles, prices in Germany have been extraordinary stable. We develop a model for studying house prices and the impact of the border. Then we study the development of Dutch house prices close to the German border in the period 1985-2013. Next, combining German and Dutch real estate datasets, we study the jump in the housing price occurring at the border. Using different estimation strategies, we find that ask prices of comparable housing drop by about 16% when one crosses the Dutch-German border. Given that price discounts from the last observed asking price are substantially larger in Germany, we interpret our findings as indicating the willingness of Dutch households to pay up to 26% higher house prices to live among the Dutch.
