Impact Analysis of Landscape Regulations on Single-family House Prices: Hedonic Analysis in Setagaya City

Abstract

Landscape regulations such as district plan and building agreement are considered as measures that preserve the attractive residential environment. However, it is unclear as to whether or not these landscape regulations raise the housing prices, and owing to this issue, landowners sometimes hesitate to introduce these regulations. In this paper, we analyzed the impact of landscape regulations on the single-family house prices by utilizing more than 14,000 examples of market data.

Considering various lot and district variables, we showed that these regulations affect the prices in the ordinary least squares（OLS）estimation; however, the same is unclear when we consider spatial autocorrelations. In addition, lot size restrictions and federal acquisition regulation（FAR）, which are related to landscape regulations, increase the housing prices in certain district conditions.