Impact of proximity to cell phone tower base stations on residential property prices in the City of Johannesburg, South Africa

Koech Cheruiyot, Nosipho Mavundla, Mncedisi Siteleki and Ezekiel Lengaram

International Journal of Housing Markets and Analysis, 2024, vol. 17, issue 6, 1422-1442

Abstract: Purpose - With revolutions in the telecommunication sector having led to wide unprecedented consequences in all facets of human life, this paper aims to examine the relationship between cell phone tower base stations (CPTBSs) and residential property prices within the City of Johannesburg (CoJ), South Africa. Design/methodology/approach - The authors align their work with global literature and assess how the impact of CPTBSs influences residential property values in South Africa. The authors use a semi-log hedonic pricing model to test the hypothesis that proximity of CPTBSs to residential properties does not account for any variation in residential property prices. Findings - The results show a significant impact that proximity of CPTBS has on residential property sale prices. However, the impact of CTPBSs’ proximity on residential property prices depends on their distance from the residential properties. The closer a residential property is to the CTPBS, the greater the impact that the CTPBS will have on the selling price of the residential property. Originality/value - With international studies offering mixed findings on the impact of CPTBSs on residential property values, there is limited research on their impact in South Africa. The findings of this study offer crucial insights for the real estate practitioners, property owners, telecommunications companies and the public, providing a nuanced understanding of the relationship between CPTBSs and property values. This research helps property owners understand the effects of CPTBSs on their properties, and it assists property valuers in gauging the impact of CPTBSs on property values.

Keywords: South Africa; Impact; Proximity; City of Johannesburg; Cell phone tower base station; Residential property prices (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijhmap:ijhma-12-2023-0167

DOI: 10.1108/IJHMA-12-2023-0167

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