Modeling the value of view in high-rise apartments: a 3D GIS approach
Views, being a qualitative and subjective variable, are difficult to measure and quantify for valuation purposes. In order to quantify view in a variable, there is a need to reflect the influence of the height of surrounding buildings, the surrounding topography, and the height and orientation of the subject property itself. Such influences could be captured only through the use of 3D modeling techniques. Few studies have explored the use of 3D modeling for valuation and mass-appraisal purposes. In this paper we demonstrate the use of 3D geographic information systems and regression analysis to estimate the value of views in high-rise apartments. We focus on the value of sea views in private high-rise residential properties located near the eastern coast of Singapore. Our results show that an unobstructed sea view will add an average premium of 15% to the property price. In addition, we further illustrate the application of our model in a simulation exercise to maximize the sea view of a redevelopment project in the same neighbourhood. We further suggest the implications of pricing strategies of private developers in preconstruction sales.
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