Impacts of shopping malls on the housing price - Evidence from Stockholm

Sammanfattning: Shopping malls, as an important type of commercial facilities, are growing dramatically.They have gradually become one of the most dominant factors that can influence people's daily life as well as a city's economic development. People's willingness to pay for dwellings is also primarily associated with the surrounding commercial layout.Hence, it is of interest to find out more from a quantitative perspective on the relationship between shopping malls and housing prices. This study aims to analyzehow the prices of condominiums will be affected by the proximity of shopping malls.Two aspects are considered and examined in the empirical study, namely a proximity to the shopping mall, and the number of shopping malls within 3 kilometers radius. Wetry to examine if there is any price premium for those apartments near the shoppingmall or with more shopping malls in the neighborhood. In this empirical study, 36shopping malls in different locations in the county of Stockholm, Sweden, is utilized.The sample of transactions consists of 336,914 apartments. By using regression analysis, based on the traditional hedonic model, the results show that there is an inverse relationship between the apartment prices and its distance from the shopping mall while the number of shopping malls is positively correlated with apartment prices.