An Empirical Study of Sea View Value by Repeat Sales Method

20 Pages Posted: 9 Sep 2008

See all articles by Chung Yim Edward Yiu

Chung Yim Edward Yiu

Chinese University of Hong Kong - Department of Geography and Resource Management

K.W. Chau

The University of Hong Kong - Ronald Coase Centre for Property Rights Research - Economics

Siu Kei Wong

University of Hong Kong

Date Written: September 9, 2008

Abstract

Sea view is almost always found to have a positive effect, whereas reclamation is believed to exert a negative effect on housing price. However, almost all the previous studies are cross sectional in nature, which cannot disentangle multicollinear factors and spillover effects; and do not directly test the impacts of reclamation works on housing price. This paper aims to test empirically in a longitudinal way the sea view value and the effects of reclamation works on housing price. Aerial photos are exploited to track the stages of the reclamation works. Contrary to the traditional belief, it finds that housing units originally with sea views were still enjoying positive premium in transaction prices after the sea had been reclaimed. It is argued that greenery view is of equal value, which can still be provided on reclaimed land. It has strong practical implication in planning and development because obstruction of sea views is often a claim for property price loss by housing owners.

Keywords: Reclamation works, Sea views, Hedonic Pricing Model, Repeat Sales

JEL Classification: B41, R22

Suggested Citation

Yiu, Chung Yim Edward and Chau, Kwong Wing and Wong, Siu Kei, An Empirical Study of Sea View Value by Repeat Sales Method (September 9, 2008). Available at SSRN: https://ssrn.com/abstract=1265424 or http://dx.doi.org/10.2139/ssrn.1265424

Chung Yim Edward Yiu (Contact Author)

Chinese University of Hong Kong - Department of Geography and Resource Management ( email )

Shatin
the New Territories
Hong Kong
Hong Kong

HOME PAGE: http://www.grm.cuhk.edu.hk/eng/people/ppl/fac_YiuEdward.html

Kwong Wing Chau

The University of Hong Kong - Ronald Coase Centre for Property Rights Research - Economics ( email )

Ronald Coase Centre for Property Rights Research
Pokfulam Road
Hong Kong
Hong Kong
(852)28592128 (Phone)
(852)25599457 (Fax)

Siu Kei Wong

University of Hong Kong ( email )

Pokfulam Road
Hong Kong, HK
China

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