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Club Good Influence on Residential Transaction Prices

by: J. Hansz, Darren Hayunga
Social Science Research Network Working Paper Series (22 January 2013)  Key: citeulike:11981731

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Abstract

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.


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