TY - JOUR
T1 - Landscape view, height preferences and apartment prices
T2 - evidence from major urban areas in Indonesia
AU - Hasanah, Andi Nidaul
AU - Yudhistira, Muhammad Halley
N1 - Funding Information:
The authors thank for comments from audiences at the Universitas Indonesia and the 2nd International Conference on Indonesian Economy and Development 2017. This research is funded by PITTA Grant Universitas Indonesia.
Publisher Copyright:
© 2018, Emerald Publishing Limited.
PY - 2018/7/24
Y1 - 2018/7/24
N2 - Purpose: Landscape view is a crucial factor in house-buying decisions. Landscape views provide an amenity to residents, and this can influence the house or apartment owners in their residence decisions. Yet, the relative value of different types of view potentially differs. Additionally, the value of each type of view may differ depending on an apartment’s elevation above the ground level. In this study, the authors aim to estimate the value of landscape views on apartment prices in major urban areas in Indonesia. Design/methodology/approach: This paper evaluates to what extent various landscape views including mountain, sea, river, lake, street, urban village, garden and sports center views affect apartment prices in major urban areas in Indonesia. Two hedonic regression approaches are used: ordinary least squares and semiparametric regression. The latter is used to accommodate a possible non-linearity in the relationship between price and apartment characteristics. The model also incorporates housing and locational characteristics as control variables. Findings: Using online apartment market data, the estimates in this paper show some degree of heterogeneity in the value of various views to the extent of providing negative externalities. Mountain, street and sports center views are associated with higher apartment prices. Sea, lake and garden views are statistically insignificant in explaining the prices. In contrast, the unappealing nature of the rivers and their surrounding creates a negative impact on prices. The estimates also suggest that an apartment’s floor height plays a significant role in the valuation of views. Originality/value: There is little research on landscape view effects on apartment prices, especially in Indonesia. In addition, the relationship between the value of views and height preferences has seldom been analyzed. This paper provides the valuation of an extensive list of landscape views in urban areas in Indonesia. The estimation results also suggest that the value of views may differ depending on the floor on which an apartment lies.
AB - Purpose: Landscape view is a crucial factor in house-buying decisions. Landscape views provide an amenity to residents, and this can influence the house or apartment owners in their residence decisions. Yet, the relative value of different types of view potentially differs. Additionally, the value of each type of view may differ depending on an apartment’s elevation above the ground level. In this study, the authors aim to estimate the value of landscape views on apartment prices in major urban areas in Indonesia. Design/methodology/approach: This paper evaluates to what extent various landscape views including mountain, sea, river, lake, street, urban village, garden and sports center views affect apartment prices in major urban areas in Indonesia. Two hedonic regression approaches are used: ordinary least squares and semiparametric regression. The latter is used to accommodate a possible non-linearity in the relationship between price and apartment characteristics. The model also incorporates housing and locational characteristics as control variables. Findings: Using online apartment market data, the estimates in this paper show some degree of heterogeneity in the value of various views to the extent of providing negative externalities. Mountain, street and sports center views are associated with higher apartment prices. Sea, lake and garden views are statistically insignificant in explaining the prices. In contrast, the unappealing nature of the rivers and their surrounding creates a negative impact on prices. The estimates also suggest that an apartment’s floor height plays a significant role in the valuation of views. Originality/value: There is little research on landscape view effects on apartment prices, especially in Indonesia. In addition, the relationship between the value of views and height preferences has seldom been analyzed. This paper provides the valuation of an extensive list of landscape views in urban areas in Indonesia. The estimation results also suggest that the value of views may differ depending on the floor on which an apartment lies.
KW - Apartment prices
KW - Hedonic price
KW - Height preference
KW - Indonesia
KW - Landscape views
KW - Semiparametric regression
KW - Urban areas
UR - http://www.scopus.com/inward/record.url?scp=85048079364&partnerID=8YFLogxK
U2 - 10.1108/IJHMA-09-2017-0082
DO - 10.1108/IJHMA-09-2017-0082
M3 - Article
AN - SCOPUS:85048079364
SN - 1753-8270
VL - 11
SP - 701
EP - 715
JO - International Journal of Housing Markets and Analysis
JF - International Journal of Housing Markets and Analysis
IS - 4
ER -
