# RECORD c0719dfc2e99247adf55e3df25480bbce55099dd # TITLE: Modelling coastal externalities effects on residential housing values # YEAR: 2022.0 VENUE: International Journal of Housing Markets and Analysis DOI: 10.1108/ijhma-05-2022-0071 # AUTHORS: A. B. Ayoola; A. Oladapo; B. Ojo; A. Oyetunji # PAGES: 58 CANDIDATE TABLE PAGES (1-based): [54, 55] # ABSTRACT: Purpose This paper aims to examine the impact of coastline on the rental value of residential property in proximity to the coastline, using the hedonic pricing model from two perspectives. First, Model 1A–C accounted for estimating the influence of coastal amenities while controlling for other housing attributes influencing rent. Second, Model 2A–C accounted for the interaction between coastal amenities/disamenities and other housing attributes influencing rent. Design/methodology/approach A survey approach was adopted for the data collection process. For both models, property values were measured in proximity to coastline using 0–250 m, 251–500 m and 0–500 m. Findings Findings revealed that property rental value increases as we move away from the coastline when disamenities are not controlled. The results suggested that for a mean-priced home (N2,941,029 or $8,170) at the mean distance from the coastline (301.83 m), a 1% increase in distance from the coastline would result in a 0.001% or N9.77 ($0.03) increase in rental value. Practical implications The implication to real estate valuers is that varying premiums should be considered when valuing a property depending on the distance to the coastline while considering other housing attributes. Originality/value This research introduces a novel approach to the hedonic model for determining property values in proximity to coastal environment by estimating the influence of coastal amenities while controlling for other housing attributes influencing rent, on the one hand, and accounting for the interaction between coastal amenities/disamenities and other housing attributes influencing rent, on the other. ===== PAGE 1 (score 3, numeric-paren 0, table-words 0, var-words 3) ===== ternational Journal of Housing Markets and Analysi Modelling Coastal Externalities Effects on Residential Housing Values Journal: International Journal of Housing Markets and Analysis Manuscript ID IJHMA-05-2022-0071.R1 Manuscript Type: Research Paper Keywords: coastline, flood, Housing, properties, rent, residential International Journal of Housing Markets and Analysis ===== PAGE 54 (score 33, numeric-paren 5, table-words 11, var-words 6) ===== nternational Journal of Housing Markets and Analysis 1 Table 1: Questionnaire administration Questionnaire Distance to Coastline Coastline Stretch Administered Retrieved Valid Within 250m 180 147 118 Between 251m-500m 304 239 200 Total Residential buildings behind Oniru beach Resort to Vantage Beach Resort/Lekki Leisure Lake 484 386 318 Table 2: Log-log Hedonic Price Models of Coastline and Housing Characteristics for Victoria Island (Non Flood Effect) Dependent variable: LogRENT, *** indicates sig @ 0.1% (p<0.001) level, ** indicates sig, @ 1% (p<0.01) level, *indicates sig, @ 5% (p<0.05) level Model 1 A (0-500m) B (0-250m) C (251-500m) VARIABLES coeff t-stat coeff t-stat coeff t-stat Constant 2.408 1.828 -1.091 -0.282 1.043 0.500 LogBLDAGE **-0.163 -3.454 -0.098 -1.300 ***-0.235 -3.775 LogBFLOAREA ***2.381 10.627 ***1.856 6.040 ***2.672 8.368 NBEDROOM 0.025 0.576 0.071 1.083 0.029 0.489 NBATROOM -0.114 -0.953 0.105 0.624 -0.252 -1.471 NFLOORS ***0.031 3.966 0.010 0.803 ***0.055 4.682 GARAGE_YES **0.152 3.468 0.059 0.851 **0.183 3.124 BLDCOND_Excellent 0.028 0.892 -0.007 -0.162 0.020 0.460 LSCAPQUA_Excellent 0.028 0.817 0.039 0.743 -0.031 -0.679 LogDISCOAST 0.001 0.009 0.077 0.359 0.233 0.763 LogDISTWORK -0.029 -0.932 -0.048 -0.852 -0.065 -1.510 LogDISBSTOP -0.437 -1.220 1.074 0.952 -0.345 -0.718 LogDISTSCH -0.002 -0.040 -0.073 -0.653 0.023 0.301 R2 0.571 0.553 0.637 Adjusted R2 0.544 0.468 0.599 Standard Error (SE) 0.17254401 0.150936371 0.17801468 Durbin-Watson 2.116 1.649 2.226 F-Statistic 21.104 6.491 16.657 p-Value 0.000 0.000 0.000 Observations 318 118 200 Page 53 of 57 International Journal of Housing Markets and Analysis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 ===== PAGE 55 (score 32, numeric-paren 5, table-words 11, var-words 5) ===== nternational Journal of Housing Markets and Analysis 2 Table 3: Log-log Hedonic Price Models of Coastline and Housing Characteristics for Victoria Island (Flood Effect) Model 2 A (0-500m) B (0-250m) C (251-500m) VARIABLES coeff t-stat coeff t-stat coeff t-stat Constant 2.619 2.285 -0.806 -0.254 2.796 1.518 LogBLDAGE **-0.162 -3.44 -0.101 -1.318 ***-0.237 -3.78 LogBFLOAREA ***2.385 10.622 ***1.863 6.147 ***2.712 8.395 NBEDROOM 0.025 0.569 0.073 1.116 0.017 0.294 NBATROOM -0.117 -0.986 0.103 0.612 -0.293 -1.696 NFLOORS ***0.032 3.975 0.009 0.75 ***0.053 4.602 GARAGE_YES **0.152 3.484 0.058 0.833 **0.198 3.478 BLDCOND_Excellent 0.028 0.891 -0.006 -0.14 0.022 0.517 LSCAPQUA_Excellent 0.028 0.841 0.044 0.859 -0.028 -0.597 Log(DISCOAST*FLODRAT E) -0.020 -0.239 0.047 0.387 -0.085 -0.319 LogDISTWORK -0.028 -0.898 -0.051 -0.91 -0.052 -1.241 LogDISBSTOP -0.494 -1.545 1.004 1.049 -0.687 -1.525 LogDISTSCH -0.004 -0.062 -0.079 -0.751 0.015 0.195 R2 0.571 0.553 0.635 Adjusted R2 0.544 0.468 0.597 Standard Error (SE) 0.1725180 6 0.15091212 5 0.1783892 5 Durbin-Watson 2.119 1.647 2.225 F-Statistic 21.115 6.494 16.547 p-Value 0.000 0.000 0.000 Observations 318 118 200 Dependent variable: LogRENT, *** indicates sig @ 0.1% (p<0.001) level, ** indicates sig, @ 1% (p<0.01) level, *indicates sig, @ 5% (p<0.05) level Page 54 of 57 International Journal of Housing Markets and Analysis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 ===== PAGE 56 (score 1, numeric-paren 0, table-words 0, var-words 1) ===== nternational Journal of Housing Markets and Analysis Fig. 1: Map of the Nigeria showing the study area Fig. 2: Surveyed property types at incremental distance (250m) to the Coastline Page 55 of 57 International Journal of Housing Markets and Analysis 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60