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Whatís in a View?

Author

Listed:
  • Steven Bourassa
  • Hoesli Martin
  • Sun Jian

Abstract

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.

Suggested Citation

  • Steven Bourassa & Hoesli Martin & Sun Jian, 2003. "Whatís in a View?," ERES eres2003_124, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2003_124
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    Cited by:

    1. is not listed on IDEAS
    2. Samarasinghe, Oshadhi & Sharp, Basil M.H., 2008. "Flood prone risk and amenity values: a spatial hedonic analysis," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6013, Australian Agricultural and Resource Economics Society.
    3. Ben-Shahar, Danny & Deng, Yongheng & Sulganik, Eyal, 2009. "Property appraisal in high-rises: A cooperative game theory approach," Journal of Housing Economics, Elsevier, vol. 18(1), pages 25-33, March.
    4. Margaret Walls & Carolyn Kousky & Ziyan Chu, 2015. "Is What You See What You Get? The Value of Natural Landscape Views," Land Economics, University of Wisconsin Press, vol. 91(1), pages 1-19.
    5. Steven C. Bourassa & Donald R. Haurin & Jessica L. Haurin & Martin Hoesli & Jian Sun, 2009. "House Price Changes and Idiosyncratic Risk: The Impact of Property Characteristics," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(2), pages 259-278, June.
    6. Erling Røed Larsen & Dag Einar Sommervoll, 2006. "The Impact on Rent from Tenant and Landlord Characteristics and Interaction," Discussion Papers 467, Statistics Norway, Research Department.

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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