The value of a view: A spatial hedonic analysis

This study estimates the value of a view amenity in the owner occupied residential property market in Auckland. Several dimensions of a view are analysed: type of view, scope of view and distance to the coast. To improve efficiency, heteroscedasticity and autocorrelation consistent covariances are estimated. Results suggest that a view adds significantly to the value of a residential property, where a wide water view closer to the coast has the highest positive impact. It is found that a wide water view increases the mean sale price approximately by 44% at the coastline.