1# RECORD c0719dfc2e99247adf55e3df25480bbce55099dd2# TITLE: Modelling coastal externalities effects on residential housing values3# YEAR: 2022.0 VENUE: International Journal of Housing Markets and Analysis DOI: 10.1108/ijhma-05-2022-00714# AUTHORS: A. B. Ayoola; A. Oladapo; B. Ojo; A. Oyetunji5# PAGES: 58 CANDIDATE TABLE PAGES (1-based): [54, 55]6# ABSTRACT: 7Purpose8This 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.91011Design/methodology/approach12A 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.131415Findings16Findings 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.171819Practical implications20The 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.212223Originality/value24This 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.25262728===== PAGE 1 (score 3, numeric-paren 0, table-words 0, var-words 3) =====2930ternational Journal of Housing Markets and Analysi31Modelling Coastal Externalities Effects on Residential 32Housing Values33Journal:34International Journal of Housing Markets and Analysis35Manuscript ID36IJHMA-05-2022-0071.R137Manuscript Type:38Research Paper39Keywords:40coastline, flood, Housing, properties, rent, residential41 42International Journal of Housing Markets and Analysis434445===== PAGE 54 (score 33, numeric-paren 5, table-words 11, var-words 6) =====4647nternational Journal of Housing Markets and Analysis48149Table 1: Questionnaire administration50Questionnaire51Distance to Coastline52Coastline Stretch53Administered54Retrieved55Valid56Within 250m57180581475911860Between 251m-500m61304622396320064Total65Residential buildings behind 66Oniru beach Resort to 67Vantage Beach Resort/Lekki 68Leisure Lake69484703867131872Table 2: Log-log Hedonic Price Models of Coastline and Housing Characteristics for 73Victoria Island (Non Flood Effect)74Dependent variable: LogRENT, *** indicates sig @ 0.1% (p<0.001) level, ** indicates sig, 75@ 1% (p<0.01) level, *indicates sig, @ 5% (p<0.05) level 76Model 177A (0-500m)78B (0-250m)79C (251-500m)80 VARIABLES81coeff82t-stat83coeff84t-stat85coeff86t-stat87Constant882.408891.82890-1.09191-0.282921.043930.50094LogBLDAGE95**-0.16396-3.45497-0.09898-1.30099***-0.235100-3.775101LogBFLOAREA102***2.38110310.627104***1.8561056.040106***2.6721078.368108NBEDROOM1090.0251100.5761110.0711121.0831130.0291140.489115NBATROOM116-0.114117-0.9531180.1051190.624120-0.252121-1.471122NFLOORS 123***0.0311243.9661250.0101260.803127***0.0551284.682129GARAGE_YES130**0.1521313.4681320.0591330.851134**0.1831353.124136BLDCOND_Excellent1370.0281380.892139-0.007140-0.1621410.0201420.460143LSCAPQUA_Excellent1440.0281450.8171460.0391470.743148-0.031149-0.679150LogDISCOAST 1510.0011520.0091530.0771540.3591550.2331560.763157LogDISTWORK158-0.029159-0.932160-0.048161-0.852162-0.065163-1.510164LogDISBSTOP165-0.437166-1.2201671.0741680.952169-0.345170-0.718171LogDISTSCH172-0.002173-0.040174-0.073175-0.6531760.0231770.301178R2 1790.5711800.5531810.637182Adjusted R21830.5441840.4681850.599186Standard Error (SE)1870.172544011880.1509363711890.17801468190Durbin-Watson1912.1161921.6491932.226194F-Statistic19521.1041966.49119716.657198p-Value1990.0002000.0002010.000202Observations203318204 205118206 207200208 209Page 53 of 57210International Journal of Housing Markets and Analysis211121222133214421552166217721882199220102211122212223132241422515226162271722818229192302023121232222332323424235252362623727238282392924030241312423224333244342453524636247372483824939250402514125242253432544425545256462574725848259492605026151262522635326454265552665626757268582695927060271272273===== PAGE 55 (score 32, numeric-paren 5, table-words 11, var-words 5) =====274275nternational Journal of Housing Markets and Analysis2762277Table 3: Log-log Hedonic Price Models of Coastline and Housing Characteristics for 278Victoria Island (Flood Effect)279Model 2280A (0-500m)281B (0-250m)282C (251-500m)283VARIABLES284coeff285t-stat286coeff287t-stat288coeff289t-stat290Constant2912.6192922.285293-0.806294-0.2542952.7962961.518297LogBLDAGE298**-0.162299-3.44300-0.101301-1.318302***-0.237303-3.78304LogBFLOAREA305***2.38530610.622307***1.8633086.147309***2.7123108.395311NBEDROOM3120.0253130.5693140.0733151.1163160.0173170.294318NBATROOM319-0.117320-0.9863210.1033220.612323-0.293324-1.696325NFLOORS 326***0.0323273.9753280.0093290.75330***0.0533314.602332GARAGE_YES333**0.1523343.4843350.0583360.833337**0.1983383.478339BLDCOND_Excellent3400.0283410.891342-0.006343-0.143440.0223450.517346LSCAPQUA_Excellent3470.0283480.8413490.0443500.859351-0.028352-0.597353Log(DISCOAST*FLODRAT354E) 355-0.020356-0.2393570.0473580.387359-0.085360-0.319361LogDISTWORK362-0.028363-0.898364-0.051365-0.91366-0.052367-1.241368LogDISBSTOP369-0.494370-1.5453711.0043721.049373-0.687374-1.525375LogDISTSCH376-0.004377-0.062378-0.079379-0.7513800.0153810.195382R2 3830.5713840.5533850.635386Adjusted R23870.5443880.4683890.597390Standard Error (SE)3910.172518039263930.1509121239453950.17838923965397Durbin-Watson3982.1193991.6474002.225401F-Statistic40221.1154036.49440416.547405p-Value4060.0004070.0004080.000409Observations410318411 412118413 414200415 416 Dependent variable: LogRENT, *** indicates sig @ 0.1% (p<0.001) level, ** indicates sig, 417@ 1% (p<0.01) level, *indicates sig, @ 5% (p<0.05) level418Page 54 of 57419International Journal of Housing Markets and Analysis420142124223423442454256426742784289429104301143112432134331443415435164361743718438194392044021441224422344324444254452644627447284482944930450314513245233453344543545536456374573845839459404604146142462434634446445465464664746748468494695047051471524725347354474554755647657477584785947960480481482===== PAGE 56 (score 1, numeric-paren 0, table-words 0, var-words 1) =====483484nternational Journal of Housing Markets and Analysis485Fig. 1: Map of the Nigeria showing the study area486Fig. 2: Surveyed property types at incremental distance (250m) to the Coastline487Page 55 of 57488International Journal of Housing Markets and Analysis489149024913492449354946495749684979498104991150012501135021450315504165051750618507195082050921510225112351224513255142651527516285172951830519315203252133522345233552436525375263852739528405294153042531435324453345534465354753648537495385053951540525415354254543555445654557546585475954860549