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Paper eres2003_124:
What’s in a View?

id eres2003_124
authors Bourassa, Steven; Hoesli Martin; Sun Jian
year 2003
title What’s in a View?
source 10th European Real Estate Society Conference (10-13 June 2003) Helsinki, Finland
summary The impact of views on property values has not been the specific focus of as much research as has the impact of other externalities on property values. When the impact of views is assessed, this is often done by simply adding a dummy variable for views in hedonic regression equations. This paper provides a detailed literature review as well as an empirical analysis of the impact of a view on residential property values using a very rich database of nearly 5,000 sales in Auckland, New Zealand. Several dimensions of a view are analyzed (type of view, scope of view, distance to coast, and quality of surrounding improvements). It is found that wide views of water add an average of 59% to the value of a waterfront property, but that this effect diminishes quite rapidly as the distance from the coast increases. Attractive landscaping and buildings in a property's neighborhood on average add 5% and 37% to value, respectively. Particularly attractive improvements in the immediate surroundings of a property add another 27% to value on average. Our results lead to the conclusion that aesthetic externalities are multi-dimensional and can have a substantial impact on residential property values.
series ERES:conference
email steven.bourassa@louisville.edu
discussion No discussions. Post discussion ...
ratings
session Session 6, Housing Economics 2
last changed 2008/12/29 19:09
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