Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa
The use of the comparable sales method to value farm properties requires that professional valuers must think like a typical buyer of farm properties in a particular area. The Stellenbosch district, located on the periphery of the Cape Metropole, is a famous wine-producing area. The typical buyer is sophisticated and wealthy: someone for whom lifestyle could probably be just as important as the income generating capacity of the wine estate. A variety of site and situational factors have to be considered by the valuer: some of which are easily identifiable and quantifiable, where others are more elusive. This study aimed to identify and order the more important motivations as perceived by typical buyers in order to provide guidelines to valuers. An empirical study was done to determine buyers' and property characteristics, and buyers' ratings of possible motivations for buying land in Stellenbosch. Factor analysis provided a hierarchy of motivations. Terroir is the dominant site factor and the most important motivation, followed by location relative to Cape Town, the aesthetic beauty of the property, accessibility of the property, potential for new/more vineyards, meso-climate and the status of the Â“addressÂ”.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anderson, Kym, 2001. "Where In The World Is The Wine Industry Going?," 2001 Conference (45th), January 23-25, 2001, Adelaide 125531, Australian Agricultural and Resource Economics Society.
- Anderson, Kym & Norman, David & Wittwer, Glyn, 2002.
"Globalization of the Worlds Wine Markets,"
CEPR Discussion Papers
3169, C.E.P.R. Discussion Papers.
- Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide 125877, Australian Agricultural and Resource Economics Society.
- G¸nter Schamel & Kym Anderson, 2003. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 357-369, 09.
When requesting a correction, please mention this item's handle: RePEc:ags:agreko:31700. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.