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

43

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References

1998

Year

Abstract

This paper presents a method of quantifying variation in quality in an amenity as a component of an hedonic property amenity valuation. The paper considers the residential land amenity of an ocean view, a situation where there is typically substantial variation in the quality of the view between sites. The method is effectively a scoring system based on three sub‐characteristics of the ocean view. It is illustrated by application to a coastal housing subdivision in Western Australia. The results provide an estimate of the increase in the sale price of a site attributable to the quality of the site’s ocean view. The method has a potential role in coastal land use management decisions.