The Value of an Ocean View: an Example of Hedonic Property Amenity Valuation

Fraser, Rob W.; Spencer, Geoff

doi:10.1111/1467-8470.00041

Cited by 35 publications

(42 citation statements)

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“…A factor that makes the investigation of property markets particularly cumbersome within Australia is the lack of centralised data on the value, location, number and type of houses sold (Beer and O'Dwyer 2000), This is the reason for the limited studies that use housing prices to estimate values of non-market goods or services in Australia, Exceptions include Abelson (1997), who compared house prices in Sydney suburbs from the 1970s to 1990s, and Fraser and Spencer (1998) who applied the hedonic price method to a small sample of new house blocks in the same area on Western Australia'S coast. Most of the hedonic pricing studies have used the actual sale price of the property and hence have directly followed the property market, A few studies have used vacant land sales, e.g, Fraser and Spencer (1998) and Rinehart and Pompe (1999).…”

Section: 1 Unimproved Property Valuesmentioning

confidence: 99%

“…Most of the hedonic pricing studies have used the actual sale price of the property and hence have directly followed the property market, A few studies have used vacant land sales, e.g, Fraser and Spencer (1998) and Rinehart and Pompe (1999). Rinehart and Pompe (1999, p. 58) In relation to improved land -the capital sum which the fee simple of the land might be expected to realise ifoffered for sale on such reasonable terms and conditions as a bona fide seller would require, assuming that, at the time as at which the value is required to be ascertained for the purposes of this Act, the improvement did not exist.…”

Section: 1 Unimproved Property Valuesmentioning

confidence: 99%

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The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method

Pearson

Tisdell

Lisle

2002

Economic Analysis and Policy

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This study deals with the vaiuation of a National Park in an urban area. The hedonic price method is used to estimate the impact of the headland section of Noosa National Park (NNP) on nearby unimproved land values. Unimproved land values of 641 house blocks surrounding NNP were used in a variety of regressions to provide values for both proximity and view of the park. The study found that a glimpse of NNP generates an increase of 7% in the land value. However. being in close walking distance to NNP has little impact upon the value of land. Properties located south ofNNP headland were found to be valued at only 85% of comparable properties to the north. The variables with the greatest impact on price are direct distance to the oce3J1 and a view of the ocean. If properties are closer to another urban park (not a national park), there is a strong negative relationship between price and distance to the park. But properties closest to NNP do not experience this relationship. It is suggested that disamenities of such a well-known park, including parking problems and 'unsavory characters' may result in the direct distance to NNP not being a significant explanatory variable in relation to price. This information is useful to local governments with national parks within their borders who want to estimate the value of the park to their area, e.g. in relation to rates.Leonie Pearson completed her contribution (0 this article while enrolled in the PhD program at the School of Natural and Rural Systems Management. The University of Queensland. She is grateful for support from this School. The authors are also grateful to the Department of Natural Resources and Mines in supplying the data for analysis.

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Section: 1 Unimproved Property Valuesmentioning

confidence: 99%

Section: 1 Unimproved Property Valuesmentioning

confidence: 99%

The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method

Pearson

Tisdell

Lisle

2002

Economic Analysis and Policy

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“…30852 for earlier period (-1993); 33642 for latter period (-1994), i.e. FIM 31,000 (25%) and 34,000 (19%); shore proximity dummy insignificant For the three price segments: the higher the price group, the share of observations possessing a shore view is not significantly larger Hedonic study, value of a river view, dummy variable, house sales Price premium 28% Fraser & Spencer (1998), western Australia Hedonic study, ocean view for undeveloped residential sites (n=114), scoring matrix 0-10 based on the potential loss of view and degree Linear, logarithmic The best ocean view increased the price 25%; a better view increased the price, but with a diminishing rate (marginal utility) ; elevation not reported, distance not significant (Rsq.adj. :0.79)…”

Section: Neural Network Approachmentioning

confidence: 97%

“…Furthermore, they found that the value of an ocean view rose in the late 80s, during a period of market upswing. Fraser and Spencer (1998) found out that the best ocean view increased the price 25%; a better view increased the price, but with a diminishing rate (marginal utility).…”

Section: Viewmentioning

confidence: 97%

Presence of water in residential environments - value for money?

Kauko¹,

Roland²,

Ad³

et al. 2003

Proceedings of the 10th European Real Estate Society Conference - Helsinki, Finland

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The role of water in the locational bundle of residential value and choice determinants is multiple. Relevant attributes pertain to water quality, proximity and length of water frontage, view, size of water body, coastal development costs, and costs caused by flooding. They also pertain to different types of water: the sea, lake, river and so on. This is a systematic literature review of the influence of water proximity and use factors on property prices and area attractiveness within a spatial cost-benefit setting. According to the studies that were reviewed the composite effect for water quality, proximity and view generate a price premium up to ca 60% for seaside property, 25% for lakeside property, and up to 40% for a variety of other inland water bodies. In addition, few studies estimate the on-site potential for a coastal area with development restrictions as a net effect of the positive amenity benefits and negative opportunity costs to vary in the range from +21.5 to -14.5%. On balance these figures point to substantial benefits of water location. However, the price impact of flood risk was quantified separately as up to 22%, and may be deducted from these figures, given a localised tendency for such hazard. Thus, it may be concluded that for the attractiveness potential of a site the environmental externalities play a large role. Furthermore, when allocating housing claims spatially using an operational model where all land uses are covered extra costs to overcome conflict and scarcity situations may arise.

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“…Fraser and Spencer [2] considered the residential land amenity of an ocean view by a scoring system based on three sub-characteristics of the view based on housing data from 114 sites in Western Australia. The three dimensions they used are degree of panorama, potential loss of view and elevation.…”

Section: Values Of Coastal Landscapes For Owners or Occupiers Of Propmentioning

confidence: 99%

Coastal Zone Management in the Mediterranean: Legal and Economic Perspectives

et al. 2009

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SummaryThis paper examines existing measures taken to protect the coastal zones of the Mediterranean Sea and assesses their success. A summary of the main pressures facing these zones is given, followed by an analysis of the legislation covering coastal zone development in ten countries: Algeria, Croatia, Egypt, France, Israel, Italy, Malta, Spain, Tunisia and Turkey. We find that not all of these states have legislation specifically covering coastal zones, but there is concern in all areas that the legislation is not working, We also look at the costs and benefits of controlling coastal development. Firstly, a literature review of valuation studies identifies a range of values placed on developed and undeveloped coastline for both users and local property owners. These values were then used in a model to evaluate policy options to control development of a stretch of coastline. The model indicates that a stricter control regime of coastal development may provide significant benefits. followed by an analysis of the legislation covering coastal zone development in ten countries: KeywordsAlgeria, Croatia, Egypt, France, Israel, Italy, Malta, Spain, Tunisia and Turkey. We find that not all of these states have legislation specifically covering coastal zones, but there is concern in all areas that the legislation is not working,We also look at the costs and benefits of controlling coastal development. Firstly, a literature review of valuation studies identifies a range of values placed on developed and undeveloped coastline for both users and local property owners. These values were then used in a model to evaluate policy options to control development of a stretch of coastline. The model indicates that a stricter control regime of coastal development may provide significant benefits.

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The Value of an Ocean View: an Example of Hedonic Property Amenity Valuation

Cited by 35 publications

References 4 publications

The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method

The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method

Presence of water in residential environments - value for money?

Coastal Zone Management in the Mediterranean: Legal and Economic Perspectives

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