The contribution of scenic views of, and proximity to, lakes and reservoirs to property values
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2018 John Wiley & Sons Australia, Ltd Water is arguably the world's most critical resource, although its aesthetic and recreational functions typically receive less attention than its consumptive uses. Views of, and access to, attractive water resources are capitalized into property prices in the form of sales price and rental premiums, measured since the 1970s with the hedonic pricing technique. This study synthesizes the evidence to date with respect to the value of lakes and reservoirs as aesthetic and recreational resources to nearby residents. Findings are reported relating to the effects of scenic views of, and proximity, to reservoirs and large artificial lakes, the North American Great Lakes, and other smaller inland lakes. Of the 44 distinct reviewed studies that included tests of statistical significance, only two failed to produce any significant findings in the directions anticipated (i.e., a positive impact of water frontage or view and/or negative impact of increasing distance). Improvements in methodological approachesfrom early studies employing anecdotal observation and visual comparison to more recent investigations employing advanced geographical information systems and rigorous spatially explicit regression techniquesare traced. The potential implications of climate variability and changes for property values are addressed, as is the growing movement towards the adoption of green infrastructure. The need to consider changes to aesthetic and recreational values, in addition to outcomes for more traditional consumptive uses during costbenefit analyses associated with proposed (re)developments, is emphasized.
