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Purpose

This paper aims to explore an approach in which asset management strategies of housing associations are largely determined at neighbourhood level and in which the development of the market value is one of the key criteria.

Design/methodology/approach

The paper discusses the characteristics of the existing asset management models and their drawbacks. It describes area‐based policies, and it argues how the neighbourhood level can be incorporated in asset management and why this also helps to solve some of the drawbacks of the portfolio‐based models derived from strategic business planning. This approach is illustrated with the practice of housing association Stadgenoot.

Findings

It is argued that asset management based on value creation at neighbourhood level has significant advantages above the “traditional” business planning approach and suggests some further directions for elaboration of this approach.

Practical implications

This approach enables housing associations to improve their asset management strategies.

Originality/value

The paper presents a new view on asset management in response to traditional, top‐down, rational planning models.

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