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Valuing Visual Accessibility of Scenic Landscapes in a Single Family Housing Market: A Spatial Hedonic Approach

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  • Jay Mittal

Abstract

This article uses a hedonic modelling approach to assess the effect of visual accessibility of scenic lands on housing price. It estimates households’ implicit willingness to pay for the visual accessibility of privately owned voluntarily protected scenic lands in a single family housing market. These lands are protected in perpetuity for natural, historic, and scenic characteristics. The premium price effect was captured using the visual accessibility variable, a combined weighted measure of visibility and proximity. This is named as Gravity Inspired Visibility Index (GIVI). A comprehensive review of eight environmental amenity from multidisciplinary sources provides basis on significance of ‘proximity’ and ‘view.’ A detailed methodology on developing spatial interaction variable using 3D GIS and viewshed1 technology is provided. This variable was used to estimate the capitalized premium from the preserved lands. Both global (adjusted R2= 0.52, AICc= 29828) and geographically weighted regression (GWR) models (adjusted R2= 0.59, AICc= 29729) estimated the marginal price effect. The results indicate an average 3.4% price premium on mean home value from the GWR model. The article offers a useful framework for evaluating effects of land protection for planning and real estate scholars. It also offers useful insight to conservation agencies, local governments, professional planners, and real estate professionals for prioritizing land sites with scenic views and for property development.

Suggested Citation

  • Jay Mittal, 2017. "Valuing Visual Accessibility of Scenic Landscapes in a Single Family Housing Market: A Spatial Hedonic Approach," ERES eres2017_1, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2017_1
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    File URL: https://eres.architexturez.net/system/files/P_20161013041656_675.pdf
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    References listed on IDEAS

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    1. Mitsuru Sasaki & Kayoko Yamamoto, 2018. "Hedonic Price Function for Residential Area Focusing on the Reasons for Residential Preferences in Japanese Metropolitan Areas," JRFM, MDPI, vol. 11(3), pages 1-18, July.

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    More about this item

    Keywords

    Geographically Weighted Regression; GIS; Land Conservation; Spatial Hedonic Model; Viewshed analysis;
    All these keywords.

    JEL classification:

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

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