Submitted:
04 February 2021
Posted:
05 February 2021
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Abstract
This paper focuses on the physical attributes of land that intrinsically limit land use and possibly affect land values. In particular, we investigate if the slope of a land does decrease its price and investigate the role of land slope in forming more reliable constant-quality land price indices and aggregate house price indices. We find that, while land slopes do decrease the land price per unit, they have a small effect on the quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.
Keywords:
Land price index
; Land slope
; Slope discount
; Decomposition
; Builder’s model
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