Value of an Apartment with Sunlight and View a Quasi-Experimental Analysis

The Vert-Vill apartments consist of two 32-storey buildings of similar structure: Vert-Vill 101 and 102. The tenants enjoyed a beautiful view and sunlight without any interruption. However, construction of The Lucky Golden Suite 3 m away from the Vert-Vill 101 completely removed sunlight and the view of Vert-Vill 101 without harming Vert-Vill 102. We performed a difference-in-difference analysis using this particular experimental circumstance and found that sunlight and view account for 16.2% of apartment price. Analysis with neighboring apartments as an alternative control suggests that conventional hedonic analysis without careful control of omitted variables could generate biased estimates