Spatial spillover effect of urban landscape views on property price

This paper attempts to investigate the spatial spillover effects of urban landscape views and the accessibility to amenities on the property price in CBD of Guangzhou city via spatial econometric analysis. The paper overcomes the shortcomings of the previous studies by employing an improved spatial weight matrix and providing a series of reasonable spatial model selection procedures. In addition to investigating the direct and indirect (spillover) effects, this study further explores the partitioning of direct and indirect effects, and finds out the impacts of the neighboring characteristics from close distance (immediate neighbors) to the far away distance on property price. Its key finding suggests that people in CBD are willing to pay an extra premium for enjoying a better environment. It provides useful message to urban planners and developers that new properties can be built in the neighborhood of parks, enabling potential investors to have a park view.