The price of a view: Estimating the impact of view on house prices

Jayasekare, AS; Herath, S; Wickramasuriya, R; Perez, P

The price of a view: Estimating the impact of view on house prices

Jayasekare, AS Herath, S

Wickramasuriya, R Perez, P

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Publication Type:: Journal Article
Citation:: Pacific Rim Property Research Journal, 2019, 25 (2), pp. 141 - 158
Issue Date:: 2019-01-01

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Field	Value	Language
dc.contributor.author	Jayasekare, AS	en_US
dc.contributor.author	Herath, S https://orcid.org/0000-0002-7958-3274	en_US
dc.contributor.author	Wickramasuriya, R	en_US
dc.contributor.author	Perez, P	en_US
dc.date.issued	2019-01-01	en_US
dc.identifier.citation	Pacific Rim Property Research Journal, 2019, 25 (2), pp. 141 - 158	en_US
dc.identifier.issn	1444-5921	en_US
dc.identifier.uri	http://hdl.handle.net/10453/136705
dc.description.abstract	© 2019 Pacific Rim Real Estate Society. Houses with desired aesthetic views have a price premium over similar houses without such views. This article raises the following questions in relation to view as a location-specific amenity: How can we calculate a reliable indicator for view using available information? Are dwellings with a view sold for a premium compared to otherwise similar properties? Using more than 5,000 house transactions in the Illawarra region in Australia, and applying hedonic price method, the study analyses the price effects of key aesthetic views. Due to unavailability of view as a housing characteristic within historical records, spatial analysis tools were used to estimate views for housing locations. The results confirm the significance of aesthetic views in explaining house prices. Beach view is the most important aesthetic view. An increase of 1% of beach view drives house prices up by nearly 2–3%. Significant positive contributions to prices are also evident from sea, conservation area and inland water views. In addition to the views, other location-specific attributes also influence house prices. Methods developed in this study to quantify the value of aesthetic views and location-specific characteristics associated with residential locations form an important contribution to urban planning and policy development.	en_US
dc.relation.ispartof	Pacific Rim Property Research Journal	en_US
dc.relation.isbasedon	10.1080/14445921.2019.1626543	en_US
dc.title	The price of a view: Estimating the impact of view on house prices	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	25	en_US
utslib.for	1504 Commercial Services	en_US
utslib.for	12 Built Environment and Design	en_US
utslib.for	14 Economics	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	closed_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	25	en_US

Abstract:

© 2019 Pacific Rim Real Estate Society. Houses with desired aesthetic views have a price premium over similar houses without such views. This article raises the following questions in relation to view as a location-specific amenity: How can we calculate a reliable indicator for view using available information? Are dwellings with a view sold for a premium compared to otherwise similar properties? Using more than 5,000 house transactions in the Illawarra region in Australia, and applying hedonic price method, the study analyses the price effects of key aesthetic views. Due to unavailability of view as a housing characteristic within historical records, spatial analysis tools were used to estimate views for housing locations. The results confirm the significance of aesthetic views in explaining house prices. Beach view is the most important aesthetic view. An increase of 1% of beach view drives house prices up by nearly 2–3%. Significant positive contributions to prices are also evident from sea, conservation area and inland water views. In addition to the views, other location-specific attributes also influence house prices. Methods developed in this study to quantify the value of aesthetic views and location-specific characteristics associated with residential locations form an important contribution to urban planning and policy development.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/136705