英文摘要 |
Depreciation reflects the decline in an asset's value over time. The value of real estate will decrease gradually due to the building's physical deterioration. Most empirical studies thus adopt age and age-squared as proxies to measure depreciation, and the variables are often statistically significant. The empirical results suggest that there exists an upturn in the value of a property following a period of falling values over the property's economic life. Doubt is therefore cast on the conventional belief of a downward-only trend in property value. This article adopts multi-regression analysis to examine the pattern of use value and the redevelopment value of properties in Taipei City. The results show that the reversion of real property depreciation is due to the interaction of use value and redevelopment value. Therefore, a higher building age might yield a greater land redevelopment value. |