Repeat Sales Analysis of the Value of Seaview

Abstract

Almost all previous studies on the value of seaview were cross-sectional as it is almost impossible to find any formation or removal of seaview in the scale of man time. However, cross-sectional analysis is well known of its shortcoming in controlling housing quality and temporal components in hedonic pricing models. Furthermore, spill-over effects or positive externalities cannot be studied by cross-sectional method. This paper is probably the first study on the value of seaview by repeat sales method at an estate where the seaview was artificially removed by reclamation. Better still, the authors have developed a novel WLS repeat sales model to rectify the variations of variance. The results can pinpoint to the actual value of possessing a seaview in a high rise building context.