EconPapers    
Economics at your fingertips  
 

The price premium of heritage in the housing market: evidence from Auckland, New Zealand

David Bade, Jose Castillo (), Mario Fernandez and Joseph Aguilar-Bohorquez

Land Use Policy, 2020, vol. 99, issue C

Abstract: Heritage places are one of many urban features that shape the form and identity of a city. Local government regulations protect and conserve heritage but in so doing also generate restrictions or opportunity costs for homebuyers and developers. In this paper, we take Auckland, New Zealand, as case study and estimate price effects of two different forms of local government heritage protection: scheduled heritage places and Special Character Areas. We find a statistically significant price penalty of around -9.6% for houses protected for heritage values, between years 2006-2016. Yet, we also identify an external and local price premium, related to the number of heritage places around a house. This local density effect is approximately 1.7% for an additional heritage place in a radius of 50 meters around the house, and decreases as the radius under analysis expands. We also find a price premium for a house located in Special Character Areas, for which the effect is positive and reaches 4.3%. Reported effects are robust to several specifications but are highly dependent on time dynamics.

Keywords: Heritage; Heritage premium; Hedonic price models; Housing market; Conservation areas (search for similar items in EconPapers)
JEL-codes: C21 R1 R2 R5 Z10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264837719317016
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719317016

DOI: 10.1016/j.landusepol.2020.105042

Access Statistics for this article

Land Use Policy is currently edited by Jaap Zevenbergen

More articles in Land Use Policy from Elsevier
Bibliographic data for series maintained by Joice Jiang ().

 
Page updated 2021-03-28
Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719317016