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The Effect of Appurtenant Golf Memberships on Residential Real Estate Prices

Author

Listed:
  • Steve P. Fraser

    (Florida Gulf Coast University)

  • Marcus T. Allen

    (Florida Gulf Coast University)

Abstract

Considerable prior research confirms the existence of real estate price premiums associated with golf course amenities in residential development projects. This study examines a unique residential development project in which membership in a golf club is appurtenant to the real estate: ownership of certain (but not all) dwellings in the project includes deeded membership in the project¡¦s golf club. In this development project, golf memberships can only be obtained or disposed of by acquiring or selling the associated dwelling, respectively. The results of this analysis indicates that price premiums associated with appurtenant golf memberships, after controlling for golf course view and other relevant property characteristics, are significantly positive. Furthermore, the results indicate that the magnitude of the price premium for appurtenant golf memberships varies across dwelling types (detached vs. attached) in this project. These findings may be important for housing developers, consumers, lenders, appraisers, and property and income tax authorities.

Suggested Citation

  • Steve P. Fraser & Marcus T. Allen, 2016. "The Effect of Appurtenant Golf Memberships on Residential Real Estate Prices," International Real Estate Review, Global Social Science Institute, vol. 19(2), pages 249-264.
    • Handle: RePEc:ire:issued:v:19:n:02:2016:p:249-264
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    References listed on IDEAS

    as
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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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