The factors that influence house prices have been subject to much study and one factor that emerges very strongly is the view that can be seen from the dwelling unit, particularly, high-rise units. Most studies, using multiple regression analysis, show that good views, such as sea view, do enjoy a premium in value.  New research by Yu Shi-Ming and Chai Chee-Hian of the Department of Real Estate, National University of Singapore focuses on the impact of obstructing that view has on house prices.

Using data from two condominium projects in Singapore, the study analyses the change in price when a new condominium project, which would obstruct the existing view of units in the two condominiums, was launched.  The researchers used intervention analysis to investigate the impact of the obstruction of view on property prices.  The results show that the impact started to have an impact on prices of the obstructed development once the construction of the new development began.  In addition, the results show that the impact is of a pure jump function, where there is an immediate and lasting effect, and the prices of the obstructed development were depressed by around 8% in the long term. The paper further suggests the implications of information transparency, given that planning information is widely available to developers and potential buyers in Singapore.

This paper won the RICS 2005 best paper prize for the Pacific Rim Property Research Journal