Value of the Vertical Position in the Building and the Condominium Management

─From the Viewpoint of the Real Estate Appraisal

Abstract

The law provides the voting rights must be determined by the unit area. The rule was made when the condominiums were relatively small and simple. Nowadays condominiums have become much bigger and high rise. The difference of the market value in a high rise condominium is relatively large. The value of a condominium is made up by the land value and the building value. There are four ways to explain the high price at the upper story in the building. The buyer pay more money for the unit in upper story because of the higher benefi t during the building lifetime. One of the four ways to explain is to assume the high value is a depreciable asset.