The Influence of Lot Position on House Price

Abstract

This study aims to understand and quantify the influence that residential lot position has on house price in Auckland City, New Zealand. The empirical results show that price effects largely depend on whether the lot accesses an arterial or local road. With an inside lot fronting a local road as the default condition, the study finds corner lots facing arterial roads are most heavily discounted, while rear lots off arterial roads are on par with sought-after inside lots on quiet streets. These findings reflect homebuyers’ willingness-to-pay for refuge from the air and noise pollution generated by vehicles travelling on arterial roads.