Abstract
This paper applies spatial hedonic econometric models to estimate the willingness of buyers to pay for dwellings with different orientations based on a data set comprising 63 306 transactions of secondhand apartment sales in 10 districts in Beijing from October 2011 to September 2014. Our results indicate that apartments with South orientation are sold at a 7.8% premium compared with those with West orientation, and that apartments in ancient city areas are more sensitive to orientation. The obtained results can help architects and developers to maximize the value of development projects by optimizing the layout of apartment units on each floor.
Highlights
The orientation and facing direction of buildings have historically played a critical role in Chinese culture
Based on about 63 306 transactions of secondhand apartments in 10 districts in Beijing from October 2011 to September 2014, we estimate the determinants of transaction prices focusing on apartment orientations. Using both traditional hedonic ordinary least squares (OLS) models and spatial econometric models, we find that apartments with south orientation are sold at a 7.8% premium compared with west-oriented apartments
Cook, and Marceau (2004) studied the solar energy system in Sydney Olympic village and proposed that exposing north-facing windows for winter sun is a possible method for developers to increase energy efficiency. Both OLS models and spatial econometric models are estimated to obtain the impact of attributes on price per square meter (PSM)
Summary
The orientation and facing direction of buildings have historically played a critical role in Chinese culture. As for the architectural history of Beijing, the most famous and traditional type of residence is the courtyard house (siheyuan), which consists of a courtyard surrounded by walls or buildings on all four sides. It is a standard courtyard house, typically oriented in the southnorth direction and the master bedroom and the living room should face south because this direction makes good use of sunlight. East and West wing rooms are used for guests and children’s residence This type of design dominated the entire housing market for over 600 years in Beijing, from the Ming Dynasty to the Qing Dynasty (1644–1911) (Xu, 1998)
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