Intra-Project Externality and Layout Variables in Residential Condominium Appraisals

Posted: 22 Oct 1998

See all articles by Su Han Chan

Su Han Chan

City University of New York (CUNY) - Department of Real Estate

Shin-Herng Chu

California State Polytechnic University, Pomona

George H. Lentz

California State Polytechnic University, Pomona

Ko Wang

City University of New York (CUNY) - Baruch College - Zicklin School of Business

Abstract

This study examines the impact of intra-project externalities and layout variables on the selling prices of 897 condominium units in the cities of Irvine and Santa Ana in Orange County, California. It documents that, at a micro-level, proximity to intra-project externalities such as greenspace, swimming pools, recreational areas, traffic noise, and the like, and project layout variables representing the location of individual condominium units within multiunit structures, have significant effects on the property values of units within a condominium project. The results indicate that, when cost is not prohibitive, both appraisers and underwriters should take intra-project externalities and layout variables into consideration when estimating property values or underwriting residential mortgages for condominium properties.

JEL Classification: R12, R31

Suggested Citation

Chan, Su Han and Chu, Shin-Herng and Lentz, George H. and Wang, Ko, Intra-Project Externality and Layout Variables in Residential Condominium Appraisals. Available at SSRN: https://ssrn.com/abstract=121642

Su Han Chan

City University of New York (CUNY) - Department of Real Estate

One Bernard Baruch Way
New York, NY New York 10010
United States

Shin-Herng Chu

California State Polytechnic University, Pomona

3801 W. Temple Avenue
Pomona, CA 91768
United States
909-869-4587 (Phone)
Not available (Fax)

George H. Lentz (Contact Author)

California State Polytechnic University, Pomona ( email )

3801 W. Temple Avenue
Pomona, CA 91768
United States
909-869-4435 (Phone)
909-869-2124 (Fax)

Ko Wang

City University of New York (CUNY) - Baruch College - Zicklin School of Business ( email )

55 Lexington Ave., Box B13-260
New York, NY 10010
United States

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