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The Effect of Elevation and Corner Location on Oceanfront Condominium Value

Author

Listed:
  • Bruce L. Gordon

    () (University of North Alabama)

  • Daniel Winkler

    () (University of North Carolina at Greensboro)

  • J. Doug Barrett

    () (University of North Alabama)

  • Leonard Zumpano

    () (University of Alabama)

Abstract

Although previous research indicates that condominium unit location within a development has an effect on its value, no research has examined oceanfront condominium units and the unique influences to which they are exposed. This study analyzes data from condominium sales along the Gulf Coast of Alabama using hedonic pricing models that account for the externalities associated with their location. The findings indicate that the positive externalities associated with upper-floor and corner units have a positive and substantial effect on value. Corner units offer even greater positive externalities and sell at a premium to interior units, primarily due to their more panoramic view. Failure to account for both the positive and negative externalities specific to resort type properties could result in serious misspecification when applying hedonic modeling to these property types.

Suggested Citation

  • Bruce L. Gordon & Daniel Winkler & J. Doug Barrett & Leonard Zumpano, 2013. "The Effect of Elevation and Corner Location on Oceanfront Condominium Value," Journal of Real Estate Research, American Real Estate Society, vol. 35(3), pages 345-364.
  • Handle: RePEc:jre:issued:v:35:n:3:2013:p:345-364
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    JEL classification:

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

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