Article

The Impact of a Golf Course on Residential Property Values

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Abstract

A large proportion of golf courses currently under construction are part of larger real-estate projects. The objective of this study was to identify the magnitude of the increase in property prices created by the golf course in one such amenity. A hedonic analysis was undertaken using a sample of 305 sales transactions in a golf course subdivision in College Station, Texas. For comparative purposes, the assessed valuations of these properties were used as an alternative dependent variable. The premiums on lots adjacent to the golf course were $61,074 and $45,759, based on sales prices and assessed valuations, respectively. These premiums represented 25.8% of the average sales price of the homes, and 19.2% of the average assessed value. Prices and assessed values were also found to decline significantly with, distance to the country club (by $8-10 per foot from the entrance).

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... Developers focus on real estate sales utilizing the country club as an amenity to stimulate sales (Nicholls & Crompton, 2007). Developers have an on-site real estate office utilized to facilitate sales. ...
... Golf courses are expensive to join, and younger buyers many times are busy with other activities than those offered by a country club. Membership sales are related to the location of the real estate to the course (Nicholls & Crompton, 2007), so attracting members to join who live close to the club is important to the success of the club. ...
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ABSTRACT This case study engages with the importance of strategic communication during the change management process at Palm College of Hospitality and Event Management. The college is currently experiencing a change in administration from a dean of almost ten years who has been replaced by a new dean. The change management process is analyzed by means of the framework of the entrepreneurial organization theory (EOT), from which strategic communication and its four components are derived (aligning, energizing, visioning, and constituting). A lack of or ineffective strategic communication pertaining to the new vision, future direction and staffing of the college is causing confusion, a lack of trust, declining morale, and conflicting emotions among organizational members. Furthermore, the multi-campus nature of the college makes strategic communication, information dissemination, and strong leadership even more challenging. Without effective strategic communication, the morale of faculty and staff will continue to decline and eventually they may struggle to uphold the vision of the administration. Potential solutions aimed at overcoming the communication challenge across multiple campuses are offered.
... Developers focus on real estate sales utilizing the country club as an amenity to stimulate sales (Nicholls & Crompton, 2007). Developers have an on-site real estate office utilized to facilitate sales. ...
... The second, third, and fourth buyer of real estate is not as likely to buy a membership in a community as the initial retail buyer Crompton, 2007), so attracting members to join who live close to the club is important to the success of the club. ...
... It was suggested this may be attributable to the course being lower quality than courses in the later studies which, "validates that it was reasonable for real estate developers and practitioners to make the assumption that if they spent the money for a higher quality golf course they could command a higher premium for their lots" (Hueber, 2012, p. 48). The later single course study reported much higher premiums of 26% for frontage lots (Nicholls & Crompton, 2007). ...
... Nevertheless, the remaining study reporting a 26% premium. It was peer reviewed and had a comprehensive set of explanatory variables, and suggests the magnitude of frontage premium that single course analyses may reveal (Nicholls & Crompton, 2007). ...
Article
Executive Summary Between 2005 and 2017, the net number of 18-hole equivalent courses in the U.S. declined by 1,063. In recent years, the closure rate of courses has been approximately 200 a year, resulting in potentially substantial losses in property values for residents who have paid a premium to reside in proximate locations to them. Findings from 21 studies suggested eight managerial and research insights. First, there was a rapid decrease in the premiums accruing to properties located one or two blocks away from fairways that lacked a view of the course. Second, with only one exception, all studies in the review treated "frontage properties" as a homogeneous variable, which is oversimplistic. Third, most of the analyses bundled all types of golf courses into a single generic variable which assumed the same premium was associated with all of them, but quality of courses, and hence premiums, are likely to increase with their level of exclusivity. Fourth, vacant lot premium percentages ranged from 39%-85% and were much higher than those of developed lots. Fifth, premiums in three of the four studies reviewed that focused on single courses were substantially larger than those in studies that incorporated multiple courses. If all else is equal, it seems likely that single course analyses provide a more accurate picture of fairway premiums, because studies that incorporate multiple golf courses report an average premium across all of them and averages hide variations. Sixth, most recent studies included golf courses as one of multiple amenities in mega studies in The Impact on Property Values of Golf Courses 3 expansive geographical areas. This means their premiums were represented by a single mean value, which is inappropriate because it hides wide variations. Seventh, studies incorporating many golf courses that measured the distance of all properties in the sample to the nearest golf course typically reported low premiums. This reflected the inappropriateness of the measure, since it included many properties located many miles from a golf course. Finally, none of the studies considered the likelihood of different premiums being associated with different course configurations. It seems likely that small premiums would be associated with long-established core courses constructed by municipalities or private clubs to provide opportunities for golfers to play the game without regard for their impact on real estate. In contrast, premiums for courses in golf communities intentionally threaded around real estate and designed to appeal to large numbers of non-golfers by creating green viewscapes are likely to have relatively high premiums.
... Developers focus on real estate sales utilizing the country club as an amenity to stimulate sales (Nicholls & Crompton, 2007). Developers have an on-site real estate office utilized to facilitate sales. ...
... Golf courses are expensive to join, and younger buyers many times are busy with other activities than those offered by a country club. Membership sales are related to the location of the real estate to the course (Nicholls & Crompton, 2007), so attracting members to join who live close to the club is important to the success of the club. ...
... Areas devoid of attractive green spaces can attract a higher demand for golf courses manifested in higher home values. In College Station, TX, data from a sample of 305 homes was used to show that golf courses added a 26% premium to homes abutting them (Nicholls and Crompton, 2007). In San Antonio, TX, Asabere and Huffman (2009) used a database of 10,000 homes to show that proximity to golf courses added a nine percent premium to home values while proximity to trails added a two to five percent premium. ...
... There are a number of reasons why the CDOM coefficient was not significant but we can postulate that the lower home values in Kern County continue to attract buyers and investors from neighboring Los Angeles County where homes cost more. Finally, our results reiterate those found in Spencer (1998), Nicholls andCrompton (2007), Asabere and Huffman (2009) and Cebula (2009) that corner properties do not carry a premium. This implies that the large size of corner lots is canceled by the inconvenience of higher maintenance costs, traffic, lights, noise and susceptibility to crime. ...
Article
Purpose The purpose of this study is to examine the net effect of golf courses’ proximity on home sale prices in Kern County, California. Design/methodology/approach A spatial Durbin error model is used with sales price data for 1,693 homes sold in Kern County in the third quarter of 2018. This paper compares 90 different spatial econometric models using Bayesian techniques to produce posterior model probabilities which guided model selection and the number of neighbors to use. Findings The results show that significant spatial dependence exists in home values in Kern County. Point estimates indicate that homes abutting golf courses are valued at less than those which are not. This study also finds that the farther away from golf courses the average home is, the higher its value. Originality/value This study contributes to the existing literature in three dimensions. First, this paper analyzes whether proximity to golf courses impacts home values in Kern County where a study of this nature has not been conducted. Second, the analysis uses transaction data for 2018 which was a period when the sport’s popularity was fading and golf courses closing. Third, Bayesian model comparison techniques are used to select the appropriate model.
... Indeed, golf courses have been criticized strongly for their use of large quantities of water, application of herbicides and fertilizers, and establishment of exotic vegetation (Pearce, 1993;Warnken et al., 2001). Additionally, it is common for golf course designers to integrate residential development within the golf course itself (Nicholls and Crompton, 2007). In fact, it has been estimated that, during the 1990s, 46% of new golf courses were associated with real estate development (Mulvihill, 2001). ...
... Living adjacent to or within golf courses is generally viewed as a preferable place for human habitation (Mulvihill, 2001). One of the main reasons why humans choose to live near golf courses is the aesthetic qualities of green space and a countrylike atmosphere (Nicholls and Crompton, 2007). These aesthetic qualities also benefit a wide variety of wetland-dependent wildlife, including semi-aquatic turtles, and our analysis showed that golf courses had higher semi-aquatic turtle abundances than did ponds surrounded by residential development. ...
Article
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Golf courses represent a common type of anthropogenically modified habitat in suburban environments. Golf courses may provide suitable habitat for semi-aquatic animals in suburban areas, yet studies comparing animal abundances in golf course ponds with other pond types in suburban environments are somewhat limited. In this study, we compared turtle abundances in golf course ponds with ponds found in residential areas and ponds found in rural (farm) areas and examined the relationship between turtle abundance and residential landcover within individual golf courses. We captured turtles in 10 golf course ponds, 5 ponds surrounded by residential development, and 5 ponds located on farms. We estimated abundance and the effects of pond area, pond type (i.e., residential, golf, farm) and percentage of residential development within golf course boundaries. Using binomial mixture models and Bayesian inference, we found that ponds surrounded by residential development had lower abundances of Painted Turtles (Chrysemys picta) and Sliders (Trachemys scripta) than ponds located on golf courses and farms. Additionally, golf courses that have a greater amount of residential development within course boundaries had fewer turtles than courses that contained minimal residential development. Our results suggest that golf courses can offer suitable habitat for semi-aquatic turtles in suburban areas. However, residential development within golf course boundaries appears to have a negative effect on local abundances. Thus, if golf courses are to be seen as reserves for wetland-dependent animals, golf courses with low housing density should be considered as a more preferable option than courses associated with extensive residential development.
... Most of previous studies have examined the relationship between tourism and HP (e.g. Benson, Hansen, Schwartz, & Smersh, 1998;Biagi, Brandano, & Lambiri, 2015;Biagi & Faggian, 2004;Biagi et al., 2012;Browning, Gortz, & Leth-Petersen, 2008;Conroy & Milosch, 2011;Füller & Michel, 2014;Gillard, 1981;Hamilton, 2007;Kajuth, 2010;Milon, Gressel, & Mulkey, 1984;Nicholls & Crompton, 2007;Pompe & Rinehart, 1995;Rush & Bruggink, 2000;Sadeghi et al., 2012;Schäfer & Braun, 2016;Wang et al., 2012;Wenz, 2007). Füller and Michel (2014) describe short-run rentals as a new form of urban tourism in Berlin and discuss the topic with respect to neighborhood change. ...
... Accordingly, the competition for this highly demanding segment of the housing market continues to increase. Most other previous studies have analyzed the effects of single, predominantly recreational or leisure amenities on HP, such as the effects of nearby coasts and beaches (Conroy & Milosch, 2011;Hamilton, 2007;Milon et al., 1984;Pompe & Rinehart, 1995;Rush & Bruggink, 2000), certain views (Benson et al., 1998;Gillard, 1981) or nearby golf courses (Do & Grudnitski, 1995;Nicholls & Crompton, 2007). Analyzing the relationship between economic growth and tourism development has been a popular topic in the recent tourism literature (Biagi et al., 2012). ...
Article
This paper aims to examine the relationship between tourism activities and house prices (HP) in first-tier cities of China (Beijing, Shanghai and Guangzhou) using the wavelet transform context structures. This innovative technique allows the decomposition of time-series at different time frequencies. In this work, we used continuous wavelets, wavelet coherence and wavelet phase difference based on Granger causality analysis to investigate the relationship between tourism activities and HP. Results indicate that the relationship is generally positive but changes over time, displaying low to high frequency cycles. There is a unidirectional causal influence of HP on tourism activities. Moreover, the timing and frequency changes when HP co-moves with tourism. Accordingly, it can be recommended that the government increases and promotes tourism demand and further provides and nurtures the expansion of tourism supply.
... Furthermore, in the present model, house price depends also on location-specific amenities/ disamenities (A) (Anderson and West 2006;Do and Grudnitski 1995;Luttik 2000;Nicholss and Crompton 2007), and on tourism-related activities indicated with T Cannari and Faiella 2008). ...
Article
The purpose of the present work is to analyze whether—and to what extent—tourism activity affects urban house price dynamics in Italy. Using a system Generalized Method of Moments (GMM-SYS) approach and after controlling for socioeconomic characteristics of the local housing markets as well as amenities and disamenities, we test for the effect of tourism by employing a composite index that enables us to capture the complexity of the tourism market. Data consist of yearly observations on the average house prices of 103 Italian cities over the period of 1996–2007. The results confirmed by several robustness checks demonstrate that tourism activity positively affects house prices. In addition, this work provides several first hints that this relationship might not be the same for all types of cities; hence, further developments of the present work should proceed in the direction of searching for different potential regimes through the use of mixture models.
... The HPM is a widely acceptable and reliable valuation approach because it is based on actual transaction data [56,57]. Ample studies on hedonic price studies have been conducted in different geographical locations around the world to evaluate the externality effect of the environmental amenity and disamenity on proximate property values, such as accessibility to public parks and green spaces [29,31], sports facilities [32,58], transportation facility [33], toxic waste sites [23], incineration plants [24], landfill sites [59], proximity to cell phone towers [60], and hydropower dam [61]. A study based on a meta-analysis was conducted by Simons and Saginor (2006), covering 75 research articles and case studies on the influence of various externalities on the adjacent property values by incorporating the hedonic price model [62]. ...
Article
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This study is the first to perform a focalized analysis on city development, sustainable urban planning, and the negative impact of slum area disamenity on property valuation in suburban and posh areas of the Islamabad region, Pakistan. Slums exist in almost every country in the world. However, in the process of urbanization and city development, researchers have focused merely on the crumbled infrastructure, crimes, and other social problems associated with slums. Studies have covered the adverse effects of these factors on property value, although this unmatched study is the first to examine the negative impact of slum proximity on the valuation of properties in the surrounding areas and on the rental value of houses located in Islamabad. The survey method is applied to obtain feedback from inhabitants, and the study incorporated the hedonic price model to assess rental values within a range of one kilometer from selected slum areas. The findings revealed that slum neighborhoods negatively impact sustainable house rental values, as compared with the rental values of houses located far away. Rents became higher as the distance from the slums increased. The results showed that having slums in the vicinity caused a decline of almost 10% in rent. However, the rental value of a similar house unit, located 500 meters away, was found to be almost 10% higher. In the semi-log model, house rental values increased by approximately 12.40% at a distance of one kilometer from slums, and vice versa. This study will use residents’ feedback to help government officials and policymakers to resolve slum issues, which is essential for maintaining sustainable development and adequate city planning. This study sample’s findings are not generalizable to all slums, as the results are specific to this region.
... The primary business of residential golf course developers is real estate. The adjacent clubhouses are amenities that are used to assist in the sale of homes in the communities (Nicholls & Crompton, 2007). The real estate in RCC consisted of estate family homes, villas, and condominiums. ...
Article
Organizations in the service sector, such as airlines, are exposed to several potential dangers that can result in major organizational crises. Crises usu- ally happen due to a failure interaction among human, organizational and technological factors. In this paper the well known case of Helios Airways flight HCY 522 crash is used in order to illustrate how this failure interaction, in high risk service organizations, combined with inadequate crisis manage- menttactics, cancosttheexistenceoftheorganizationitself.Thepaper aims to support the need for service companies’ managers to pay extreme attention to issues that could evolve in potential failures and furthermore in crises. Moreover, the paper aims to highlight omissions and mistakes made by the responsible company while trying to manage the crisis situation, in order to provide useful conclusions for service organizations’ managers. ISSN: 2164-9987
... Some examples include temperature moderation, soil stabilization which can retard surface runoff and enhance stormwater nutrient retention and water infiltration, and supporting recreation activities and related physical and mental health benefits [20,21]. Reviews of the value of specific services such as reduced heating and cooling costs from temperature moderation, property value enhancements from aesthetically pleasing landscapes, reduced maintenance costs, and sports/recreation benefits indicate that turfgrass systems make significant contributions to economic welfare [19,[22][23][24][25][26][27][28][29]. ...
Article
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Due to complex interactions between social and ecological systems, herbicide resistance has classic features of a “wicked problem”. Herbicide-resistant (HR) Poa annua poses a risk to sustainably managing U.S. turfgrass systems, but there is scant knowledge to guide its management. Six focus groups were conducted throughout the United States to gain understanding of socio-economic barriers to adopting herbicide-resistance management practices. Professionals from major turfgrass sectors (golf courses, sports fields, lawn care, and seed/sod production) were recruited as focus-group participants. Discussions emphasized challenges of the weed management of turfgrass systems as compared to agronomic crops. This included greater time constraints for managing weeds and more limited chemical control options. Lack of understanding about the proper use of compounds with different modes of action was identified as a threat to sustainable weed management. There were significant regional differences in perceptions of the existence, geographic scope, and social and ecological causes of HR in managing Poa annua. Effective resistance management will require tailoring chemical and non-chemical practices to the specific conditions of different turfgrass sectors and regions. Some participants thought it would be helpful to have multi-year resistance management programs that are both sector- and species-specific.
... The finding of this study can provide strong empirical evidence that inequitable access to water-based POS can be associated with population density as a case study of public beaches in the DMA. Second, the market-based equity assumes that "an inequity in goods and services distribution occurs if minority groups cannot afford the necessary market price" (Kim and Nicholls 2016b, p. 130).Nicholls and Crompton (2007) have also demonstrated the impact of proximity to golf course on residential property values in ...
... Six of the seven used multiple regression analysis (what is now referred to as hedonic pricing methods). Five used sales price as the dependent variable, the benefits of which relative to assessed or census values have subsequently been documented in the hedonic literature [19,20]. ...
Article
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The desirability of living on or close to water is reflected in sometimes substantial property price premiums. Water quality has an important influence on property prices, since it impacts a water body’s appearance, capacity to support wildlife, and recreational potential. As water quality continues to be altered by human use and activity, and in light of new threats posed by projected climate and associated environmental change, understanding the impact of changing quality on property prices, and the associated property tax base, is paramount. This paper reviews the body of evidence on this topic to date. Of the 43 distinct studies represented in the 48 publications reviewed, the expected, statistically significant relationship between water quality and property price was demonstrated in at least one of the models developed in all but two studies. As a whole, they provide convincing evidence that clean water has a positive effect on property values.
... Research confirms golf course adjacent houses earn a price premium compared to interior house prices ranging from 5 to 12 percent (Do and Grudnitski, 1995;Asabere and Huffman, 1996;Grudnitski and Do, 1997;Grudnitski, 2003;Shultz and Schmitz, 2009), although higher price premiums of 21-27 percent have been found (Owusu-Edusei and Espey, 2003;Nicholls and Crompton, 2007). Typically, high-end GCCs tend to earn higher price premiums than lower quality GCCs for homes adjacent to the golf course (Mulvihill et al., 2001;Grudnitski, 2003;Shultz and Schmitz, 2009). ...
Purpose The purpose of this paper is to examine the pricing of vacant lots in master planned golf course communities (GCCs) over the period of 2000-2016. The authors compare the longitudinal pricing behavior of different lot types during this economic cycle and examine the causes of the property bubble and subsequent deterioration of the business model with the arrival of the Financial Economic Crisis (FEC). Design/methodology/approach The authors construct spatial hedonic models for three master planned GCCs in Pickens County, South Carolina and use interaction dummies to examine the pricing of different types of vacant lots before and after the FEC. Findings The authors find that there is a collapse in value for interior lots in the GCCs compared to interior lots in the county. As interior lots comprise over 50 percent of inventory in a typical master planned GCC, this loss of real estate value threatens the viability of such communities in the aftermath of the FEC. Practical implications The research results inform real estate investors, real estate developers, current homebuyers and potential homebuyers of the impacts of the FEC on master planned GCCs and some of the risks associated with such developments. Originality/value This is the first paper the authors are aware of that indicates the financial viability of master planned GCCs is associated with the pricing fragility of interior lots during cyclical markets. While demand for premium quality lots suffers, there is a collapse in demand for interior lots during the crisis.
... Do and Grudnitski (1995) examine the Rancho Bernardo area in California, and find that proximity to golf courses increase home values by 7.6%. Nicholls and Crompton (2007) find that in College Station, Texas, lots adjacent to golf courses sell for 25.8% of the average sales price of the home. Stetler (2009) finds that homes in Western Montana adjacent to golf courses sell for a 19% premium. ...
Technical Report
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This paper studies the relationship between natural amenities and home values using three different regression models. Specifically, the paper examines the implicit price that home buyers are willing to pay to be located near trails, Bureau of Land Management (BLM) land, the Colorado National Monument, golf courses, open space, parks, and rivers, controlling for other characteristics of the home.
... For example, the premium paid for properties adjoining a golf course in San Diego (California) was between 4.81% (Do and Grudnitski, 1995;Do and Grudnitski, 1997) and 7.6% (Lutzenhiser, 2001). This premium soared to 26% in relation to the average sales price of all homes not located next to golf course at Pebble Creek, Texas (Nicholls and Crompton, 2007). Anderson and West (2006) conducted a study in St. Paul and Minneapolis (Minnesota, USA) and determined that the price increases 0.0060% for each 1% that the distance to the golf course decreases. ...
Article
A large number of golf course projects were planned in the southeast of Spain from the late 1990s to 2010. Many of these projects, which multiplied the existing sports offer, were accompanied by residential developments composed of thousands of dwelling units, unlike the existing golf courses which were surrounded by open natural spaces. The aim of this article is to analyse the factors that have led to the spectacular expansion of golf course-residential developments in the southeast of Spain. The results show that these developments were motivated by the desire to make huge short term profits. The developments were, in turn, favored by the expansion of low-cost airlines, which has facilitated mobility for people who were from central and northern Europe and were interested in buying real estate properties in these regions, and by the decrease in profitability of the horticultural crops that were dominant in the region, which has facilitated the sale of the agricultural land.
... ; McGinnis & Gentry, 2006;Sawyer, 1993). Additional topics include examinations of the effect of service quality and sportscape factors (Hill & Green, 2012;Lee, Kim, Ko, & Sagas, 2011), golf spectator experiences (Lambrecht, Kaefer, & Ramenofsky (2009), golf marketing (Brooksbank, Garland, & Werder, 2012;Garland, Brooksbank, & Werber, 2011), course tee time management (Haywood-Farmer, Sharman, & Weinbrecht, 1988), human resource management (Husin, Chelladurai, & Musa, 2012), golf course impacts on residential property values (Nicholls & Crompton, 2007), international trade of golf equipment (Andreff & Andreff, 2009), PGA Tour players' decisions to enter specific tournaments (Shmanske, 2009), and finally, designing, building, operating, and maintaining courses (Bartlett & James, 2011;Jackson, et al., 2011;Wheeler & Nauright, 2006). Wheeler and Nauright (2006) noted that "more people have become less tolerant of the impact that [golf] courses have" (p. ...
Article
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This research explored environmental sustainability (ES) initiatives at five top-ranked Ontario golf courses that weremembers of the Audubon Cooperative Sanctuary Program for Golf (ACSP). The Research Questions were: (1) Howare golf courses adapting to safeguard the natural environment? (2) Why or why not are golf courses moving to ES?and (3) What are the arising barriers to ES in golf and how can they be overcome?Data collection involved in-depth interviews, observations, and unobtrusive document collection for the purpose ofcontent analysis. Data collection was framed with the dimensions of convergence by Houlihan (2012), including themotives, inputs, implementation, momentum, and impact. The dimensions were extended with the use of twoconstructs, including impression management or how the golf courses position their environmental messages, andmessage framing, or how ES was communicated to stakeholders. The environmental aspects of the examination wereguided by two Standards, including The Canadian Standards Association (CSA) Requirements and Guidance forOrganizers of Sustainable Events and Sustainable Sport and Event Toolkit (SSET). Data analysis involvedHoulihan’s dimensions of convergence extended to include impression management and message framing. Thus,RQ-1 was answered, in part, based on the following dimensions: inputs, evidence of implementation, momentum,and impact. RQ-2 was answered, in part, based on the motives, inputs, momentum, impact, and impressionmanagement. Finally, RQ-3 was answered, in part, based on inputs, momentum, impact, impressions managementand message framing.
... The research team reconvened to discuss the fact that particular words within article titles and abstracts could be misleading concerning a focus on ES. The first example of anomalous terminology included "impact(s)," which referred to topics outside of ES, such as the impact of culture upon a host community (Boyko, 2008); brand perspectives (Woo Jun & Lee, 2008); stadium advertising (Stotlar & Johnson, 1989); event growth (Sterken, 2006); scandals (Hughes, & Shank, 2008); social forces (Rueda-Cantuche, 2007), and golf courses on residential property values (Nicholls & Crompton, 2007). Second, the term "legacy" referred to areas outside of ES, including facility legacy (Ritchie, 2000) and the general legacy of sport (Henricks, 1988). ...
Article
This study systematically examined the extent of environmental sustainability (ES) research within the sport-related journal sample of academic literature to identify areas of under-emphasis and recommend directions for future research. The data collection and analysis followed a content analysis framework. The investigation involved a total of 21 sport-related academic journals that included 4,639 peer-reviewed articles published from 1987 to 2008. Findings indicated a paucity of sport-ES research articles (n = 17) during this time period. Further analysis compared the sport-ES studies within the sample to research in the broader management literature. A research agenda is suggested to advance sport-ES beyond the infancy stage.
... As noted by Nelson et al. (2005), while the supply of waterfront property on natural waterbodies is fixed, artificial waterways can be designed and built into new residential communities. The integration of home sites into golf courses, to generate an additional source of revenue for developers, is a well-established phenomenon (Nicholls & Crompton, 2007). The evidence presented here suggests that developers also stand to gain from the inclusion of artificial waterways in their housing schemes, i.e., from deliberate increase in the supply of waterfront property. ...
Article
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Rivers, streams, and canals support a variety of critical agricultural, industrial, transportation, ecological, and household uses. They also provide important aesthetic, recreational, and sociocultural benefits. This review paper synthesizes the evidence to date regarding the value of these linear water features as aesthetic and recreational resources to adjacent and nearby residents. Specifically, it summarizes 25 studies that have used the hedonic pricing method to calculate the effects of views of and proximity to rivers, streams, and canals on surrounding residential property values. The majority of studies indicated that significant positive property price effects are associated with river, stream, and canal view and proximity, though these effects appear less definitive in rural than urban settings. Implications of the body of evidence for planning, management, and development are discussed, and potential effects of climate change and diversion policies are highlighted. Improvements in measurement facilitated by advanced geographic information systems and rigorous spatially explicit regression techniques are noted.
... These premiums represent home buyers' willingness to pay extra dollars for heterogeneous environmental amenities associated with residential properties (Nicholls and Crompton 2005b). Higher property values typically mean that owners are also required to pay higher property taxes (Crompton 2007). In addition, the amounts of such taxes are likely to be fully sufficient to encompass the annual cost of facility acquisition and maintenance as well as allocate a net gain to a community's annual income (Crompton 2001;Nicholls and Crompton 2005a). ...
Article
Despite several studies that have estimated the economic value of beach proximity on housing values, previous linear hedonic pricing models (HPMs) have yet to explore the spatially heterogeneous beach premiums for housing prices. To address the issue, this study demonstrated the feasibility of spatial HPM (S-HPM) using geographically weighted regression (GWR) analysis of 152 properties in Jacksonville Beach, Florida. Specifically, this study (1) investigated the spatial associations between multiple beach proximity attributes and housing values, (2) explored local variations in modelling housing values, and (3) assessed whether GWR-based S-HPM outperformed previous linear HPM. Results indicated that the GWR-based S-HPM revealed spatially heterogeneous beach premiums for housing values, with improvements in model performance over the corresponding linear HPM. Findings of this study can contribute to understanding the local patterns of beach premiums for housing prices, ultimately providing guidelines for location-based beach access planning and management.
... Research both in the fields of tourism economics and housing studies recognizes that tourism and tourist-related activities can affect housing markets directly via the external demand generated by tourists that competes with the local resident communities for land and housing in tourist destinations, and indirectly via the capitalization of tourism-related amenities in the market price and value of housing (Biagi, Lambiri, and Faggian 2012). Early studies are mainly using hedonic method to focus on specific cases like one city or one neighborhood (Vanslembrouck, Van Huylenbroeck, andVan Meensel 2005, Nelson 2010), or on specific amenities such as beaches, parks, golf courses and so on (Nicholls andCrompton 2007, Conroy andMilosch 2011). To overcome the weakness of using single regression models to estimate the impact of tourism on housing prices, later studies follow by applying the latent class model to account for city-specific heterogeneous effects (Biagi, Brandano, and Caudill 2015), or by using the system generalized method of moments approach to capture the complexity of the tourism market (Biagi, Brandano, and Lambiri 2015). ...
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This paper aims to investigate the relationship between inbound tourism and housing market along with the recent boom in Icelandic real estate sector, in which both house and rental prices have been rising dramatically. To this end, we construct a small open economy dynamic stochastic general equilibrium (DSGE) model enclosing a tourism sector and a housing market with owner-occupied and rental sections. The simulation results unveil a transmission channel that indicates the higher inbound tourism demand raises both house prices and rental prices. Variance decomposition and historical decomposition show that both inbound tourism demand shock and manufacturing technology shock are the key driving forces of the fluctuations of Icelandic house prices, consumption and investment, whereas housing preference shock plays the most important role in determining the volatility of rental prices. The policy implications indicate that any shocks to tourism could easily spillover to housing market dynamics and aggregate fluctuations.
... Empirical studies approach tourism's effects on housing from different angles. One stream explores the effect of commercial tourist amenities (e.g., beaches, parks, golf courses, etc.) on housing prices (Anderson & West, 2006;Bolitzer & Netusil, 2000;Do & Grudnitski, 1995;Luttik, 2000;Nicholls & Crompton, 2007), while another examines the effects of accommodation platforms on housing and rental markets (Barron et al., 2020;Eliasson & Ragnarsson, 2018;Garcia-Lopez et al., 2020;Sheppard & Udell, 2016). ...
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Although researchers have confirmed the impact of tourism on housing prices in many destinations affected with overtourism, they do not consider housing affordability in relation to the population's income levels. This study explores the relationship between tourism activity and housing affordability, using a sample of Croatian municipalities. Specifically, the study investigates how tourist accommodation, concentration, seasonality and overall vulnerability to tourism influence housing affordability in this emerging tourism-driven European country. The results obtained reveal tourism intensification's deteriorating effect on local residents' abilities to afford housing. The findings indicate a particularly strong tourism seasonality impact, suggesting the presence of common negative externalities, such as employment fluctuations, difficulties in maintaining economic status, and revenue instabilities, in localities prone to seasonal tourism fluctuations.
... As a supplementary consideration, the UGS in Grimbeek Park presented the only example of a golf course. Several international studies have indicated that golf courses specifically increase proximate property values at significant levels (Crompton & Nicholls, 2020;Nicholls & Crompton, 2007;Yates & Cowart, 2019). Another interesting observation relates to the zone in which values reached a peak in each test site. ...
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Urban green spaces (UGSs) deliver ecosystem services and potential economic benefits like increases in proximate residential property prices. The proximity principle (PP) premises that property prices increase as distance to UGS decreases. The PP has generally been confirmed by studies using municipal valuations and market values internationally. Conversely, South African studies have mostly employed municipal valuations and results have rejected the PP. There is an accepted interrelationship, but also often discrepancies, between municipal valuations and market values, presenting scope for this article to explore whether negative results are confirmed when market values replace municipal valuations in PP studies in the South African context. Accordingly, a statistical analysis of market values is completed in the Potchefstroom case study, where five test sites are replicated from studies that employed municipal valuations for longitudinal comparison. Results verify generally higher market values than municipal valuations and confirm the PP in two, but reject the PP in three, of five test sites. Previous studies employing municipal valuations in the case study confirmed the PP in one instance, thus presenting certain, but limited, inconsistencies between findings based on municipal valuation vs. market value. Results suggest that the market's willingness to pay for UGS proximity is sensitive to the ecosystem services and disservices rendered by specific UGS, but not significantly more than reflected in municipal valuations. Overall, findings underscore the need to protect and curate features that encourage willingness to pay for UGS proximity to increase municipal valuations and property taxes to help finance urban greening.
... He reports price premiums of 12.5% for dwellings in private course communities, 6% in semiprivate course communities, and 5.7% in public course communities. Nicholls and Crompton (2007) consider a sample of 305 single-family detached dwelling sales in a single golf course development project near College Station, TX, from 1997 to 2001, and report a price premium of 25.8% for dwellings with golf course abutment relative to dwellings in the same development without course abutment. Shultz and Schmitz (2009) consider the issues of course abutment and ownership/membership structure by using a sample of 5,782 single-family detached dwellings from 2000 to 2006, of which 1,324 abut one of 20 different golf courses in Omaha, NE. ...
Article
Considerable prior research confirms the existence of real estate price premiums associated with golf course amenities in residential development projects. This study examines a unique residential development project in which membership in a golf club is appurtenant to the real estate: ownership of certain (but not all) dwellings in the project includes deeded membership in the project¡¦s golf club. In this development project, golf memberships can only be obtained or disposed of by acquiring or selling the associated dwelling, respectively. The results of this analysis indicates that price premiums associated with appurtenant golf memberships, after controlling for golf course view and other relevant property characteristics, are significantly positive. Furthermore, the results indicate that the magnitude of the price premium for appurtenant golf memberships varies across dwelling types (detached vs. attached) in this project. These findings may be important for housing developers, consumers, lenders, appraisers, and property and income tax authorities.
... Many studies have applied the hedonic pricing method to quantify the influence of locational amenities on tourism accommodation (Biagi et al., 2012). The results commonly demonstrate that the positive effect of touristic attractions and local amenities on prices in many neighborhoods for hotels (Espinet et al., 2003;Hamilton, 2007), holiday cottages (Taylor and Smith, 2000;Fleischer and Tchetchik, 2005;Nicholls and Crompton, 2007;Nelson, 2010) and single-family houses or nearby golf courses (Pompe and Rinehart, 1995;Rush and Bruggink, 2000;Conroy and Milosch, 2011). Contrary to these, Le Goffe (2000) and Vanslembrouck et al. (2005) find the negative effect of intensive livestock farming on renting price of self-catering cottages. ...
Article
Purpose The purpose of this study is to examine the impact of tourism activities on house prices in Turkey from January 2010 to March 2020. Design/methodology/approach It is used newly developed cointegration and causality tests based on Fourier approximation. These methods consider smooth structural breaks and do not need to recognize a priori date number and/or form of breaks. Findings Empirical findings show that international tourism activities have a substantial role in the escalation of house prices in Turkey. Findings also indicate a rise in industrial production enhances house prices while the mortgage lending rate exhibits a negative influence on house prices. Additionally, the evidence from Fourier causality tests reveals the unilateral causal linkage from tourism to house prices. This situation also shows that the tourism sector has a substantial role in stabilizing house prices’ rapid rise as a policy implication. Originality/value Although a large number of papers have been analyzing the link between house prices and macroeconomic variables, this study eliminates the lack of papers examining the link between tourism and house prices in Turkey by using the new cointegration and causality methods that consider smooth structural changes.
... Ihlanfeldt and Taylor, 2004;Wu, 2001;Wu et al., 2004), the percentage of a certain type of land use in a zone around each property (e.g. Geoghegan, 2002;Irwin and Bockstael, 2001;Kestens et al., 2004), or adjacency of other types of land use to the property (Nicholls and Crompton, 2007;Spalatro and Provencher, 2001). To measure the effects of externalities associated with highways, highway exits, train stations, railways, the planned extension of the A4 highway, shops and restaurants, social-cultural facilities (including schools, universities and hospitals) and industrial areas, we define the associated explanatory variables in the model in terms of distances. ...
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The objective of this paper is to show if, and to what extent, spatial planning procedures affect residential property prices. To answer this question we used data on residential property prices from an area in the Netherlands called Midden-Delfland. In this area policy plans and decisions on the construction of the highway A4 have been made since the 1960s. However, the plans have yet to be executed. The data we used are from the period 1996 to 2006. Using a hedonic pricing method we were able to investigate the effect of the policy plans and decisions made on property prices in this period. When the construction plans seemed to be rather definitive, sellers and buyers on the market for residential properties wanted to pay significantly lower prices for properties in close proximity to the planned A4. However, if plans fell apart, because of protests or other reasons, the prices sellers and buyers wanted to pay were insignificantly affected by the proximity to the planned A4. Outcomes of this research could be used to develop efficient compensation schemes helping to reduce resistance against large infrastructural plans.
... Management of such an expansive crop has resulted in an estimated industry value of over $80 billion annually and the support of approximately 800,000 jobs [3,4]. Unlike other crops, turfgrass is not grown for optimized yield related to human or animal consumption [5], although greenspaces of maintained turfgrass have great environmental, societal, and economic benefits [6][7][8][9][10]. ...
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Fraise mowing is a maintenance practice that may serve as a non-chemical means of controlling the problematic weed annual bluegrass (Poa annua L.) in bermudagrass (Cynodon spp.) given reports of efficacy on other turfgrass species. However, an understanding of practitioner decision-making in implementing fraise mowing as a weed-control measure remains unknown. A field study was conducted in Knoxville, TN and repeated in space in Jay, FL during summer 2019 to assess bermudagrass regrowth and subsequent annual bluegrass control, following fraise mowing at depths of 1.5 and 3.0 cm compared to a non-treated check (0 cm). Bermudagrass recovered more quickly at the 1.5 cm depth than the 3.0 cm depth and was the swiftest in Florida. Fraise mowing at either depth resulted in a 41–97% reduction in annual bluegrass populations. A qualitative study was conducted in spring 2021, which engaged eight turfgrass managers from Tennessee and Florida via individual interviews in order to understand barriers and challenges to fraise mowing application. Turfgrass managers had positive views of fraise mowing but described challenges in implementation for weed control including cost, labor, area closure, and debris removal.
... The price of properties is determined by a number of factors, including the age of the building, the proximity to useful amenities, and the view. Since people are willing to pay more for a property overlooking a beautiful landscape than for a similar property overlooking an unpleasant landscape, the differences in price between these two properties can be used to estimate the value of the landscape [24,25] . ...
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This paper addresses the question of whether the Hong Kong government made a rational economic decision when it decided to set aside land to develop a Wetland Park, or whether it should have used the land for alternative commercial developments. Different analytical methods are used to estimate the economic value of the environmental benefi ts of the Wetland Park: the Value Transfer Method is used to estimate the economic value of the ecological services provided by the Park, the Direct Market Price analysis for the economic value of the goods purchased in the Wetland Park, the Hedonic Housing Price Analysis for the value of the Park to those residing in its proximity, the Travel Cost and Contingent Valuation Method for the value of the Park to the visitors, and the Con- tingent Valuation for the Passive (Nonuse) Values of the Park. These benefi ts are compared to the opportunity cost of the land and the cost of running the Wetland Park. The article concludes that if a rate of 5% or less is used to discount future costs and benefi ts, we would fi nd that the government's decision to set aside land for a Wetland Park was economically sound, while using a discount rate of 6% or more shows that it was not.
... According to a study by Gibler et al. (2018), the benefits of living in a golf community outweigh the disadvantages. Therefore, the impact on residential construction is unquestionable and GCs tend to be part of larger real-estate projects (Nicholls and Crompton, 2007). The fact that a GC is not a one-man operation (in the sense of an isolated/lone subject) is confirmed by Poulin et al. (2006). ...
Article
This paper aims to analyze selected socio-economic aspects of golf courses (GC[s]) in the Czech Republic (CR). The analysis strives to determine what aspects affect the development and dynamics of the golf market. The analysis revealed that the construction and development of the GCs are related to the socio-economic type of territory. Most GCs are built in the developed areas (65), followed by a stabilized area (44), while only three GCs lie in peripheral areas. The GCs differ in the variety of services provided to the players. Based on the cluster analysis, the GCs fall into three various groups, where the first cluster comprises standard playgrounds, whereas the third cluster includes rather luxurious properties, which is also reflected in the quality and variety of the services provided. The subsequent economic analysis unfolded that the costs exceeded revenues for approximately 60 % of the analyzed GCs resulting in a negative economic result. The loss per hectare (ha) is up to -0.5 million CZK, and for those GCs that are profitable, these gains are only in the tens of thousands CZK. Moreover, the equity of GCs ranges from thousands (at least 1) through hundreds of thousands to millions of CZK (maximum 1.5-2.5). It seems that the motives of the holdings of the GCs are of a different character, i.e., not only financially, but also of a specific nature (owner prestige, depositing money into the assets, other uses of the acquired property and pursuing a sporting interest as a hobby). Although the paper focuses on the Czech GCs, the results could be generalized as the CR golf market is similar to other countries (i.e., saturated, stagnating membership base, low operating profitability, sustainability issues). The conclusions are beneficial not only for GCs owners or managers but also for researches concerned with socio-economic aspects of GC’s construction, development, sustainability, and management.
... Two-thirds of U.S. states deemed golf courses as "essential services" during the COVID-19 pandemic (Kelleher, 2020). Golf courses add ≥25% property value to homes depending on proximity (Nicholls and Crompton, 2007). The golf industry employs approximately 2 million people, with an economic impact of nearly $180 billion (SRI, 2012). ...
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A novel coronavirus, termed COVID-19, spread worldwide and become a global pandemic in 2020. Forecasts show that COVID-19 will cause substantial economic contraction affecting almost every industry. Managed turfgrass, particularly in urban settings, has many positive societal and environmental benefits. In a contracted economy, will resources be available to manage turfgrass to achieve these benefits? In this paper, we outline the benefits of managed turfgrass on golf courses, playing fields, recreational parks, and urban landscapes to assist decision makers with resource allocation in the COVID-19 era.
... Espinet et al. (2003) observed that distance to the beach is negatively related to hotel prices in three tourist resorts in Spain. Nicholls and Crompton (2007) determined that property prices are significantly affected by golf courses in Texas, the United States. Zhang et al. (2011) reported that the effect of distance to scenic points on hotel prices varies across different locations in Beijing, which justifies the use of geographically weighted regression. ...
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Existing literature has inadequately examined the nexus between tourism and property prices. Additionally, it mainly focuses on hotels and housing, thereby overlooking other property categories (e.g., retail properties). The relationship between tourism development and retail property prices in shopping destinations (e.g., Hong Kong and Singapore) may hinge on the locale. More specifically, the relationship may be different in the tourist precinct or popular tourism shopping area (PTSA) and the unpopular tourism shopping area (UTSA). This study examines locale-varying relationships between tourism development (measured by tourist volume and tourism expenditure) and retail property prices from 2002Q1 to 2014Q4 in Hong Kong using standard and error-correction-model-based (ECM-based) Granger causality tests. Results of standard Granger causality tests indicate that tourism development Granger causes the increase in retail property prices in the PTSA but not in the UTSA. Moreover, results of ECM-based Granger causality tests further verify the robust-ness and plausibility of the tourism-led growth (in retail property prices) hypothesis in the PTSA. In other words, we find that tourism development measures can be used to better predict changes in retail property prices in the PTSA than simply referring to the price history.
... Habría que añadir algunas características de su localización, como su cercanía al mar, al centro de la ciudad o a distritos con buenas condiciones sociales, económicas culturales o medioambientales (García-Pozo, 2008); la tasa de delincuencia (Ellen, 2016); la existencia de parques públicos, parques naturales o campos de golf cerca de las viviendas (Bolitzer, 2000); las características del vecindario como la densidad de población, la tasa del desempleo y su cercanía al transporte público o el comercio (Baranzini, 2008); atracciones de ocio y recreativas en zonas de costa (Conroy, 2009); la presencia de campos de Golf (Nicholls, 2007) o el acceso a infraestructuras de transportes (Aledo, 2007); siendo todos ellos factores que despiertan el interés de ciudadanos y turistas a la hora de elegir su residencia residencial o vacacional. ...
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En los últimos años se ha producido un aumento del parque de viviendas en alquiler en España. El incremento en la demanda de alquiler residencial y el carácter inelástico de su oferta han producido una subida de sus precios que atrae y mejora la rentabilidad de los inversores. Esta situación es simultánea a la expansión de la vivienda turística vacacional, que ayudada por las plataformas de comercialización por internet, está siendo receptora de buena parte del parque de alquiler del país. Todos estos factores producen una competición de los recursos inmobiliarios que encarece y dificulta el acceso a la vivienda, que se encuentra a su vez muy determinada por unos menores niveles de renta disponible de individuos y familias, que dificulta el ahorro inicial necesario para adquirir una vivienda en propiedad mediante financiación bancaria.Para poder evaluar este fenómeno, este artículo ha optado por emplear como metodología la llamada “revisión de la literatura”, entendiendo por esta artículos de revistas científicas y estudios y estadísticas realizados en el sector por agencias públicas como el Ministerio de Fomento, Ayunta-miento de Málaga y el Instituto Nacional de Estadística; entidades sociales como Insideairbnb o el Sindicato de Inquilinas; empresas del sector inmobiliario y turístico como Fotocasa, Servihabitat o Exceltur; y finalmente aportaciones de científicos sociales en España y en todo el mundo que han estudiado el fenómeno con detalle
... Previous studies have attempted to compare coefficient estimates for property characteristics using regression equations with different dependent variables (Nicholls & Crompton, 2007;Bowman, Thompson & Colletti, 2009). These studies, however, did not develop test statistics in order to compare these estimates. ...
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In most hedonic price model studies, the actual sales price of a property is employed as the dependent variable in the parametric regression analysis. Although the use of this price is pervasive, alternatives to it do exist. One such alternative is the assessed property value, which is more readily available than the actual property price. The aim of this study is to compare implicit price estimates of property characteristics (both structural and locational) based on actual sales price data and assessed property values. To this end, a seemingly unrelated regression with two hedonic price equations is used, one which employs actual market prices as the dependent variable and the other which employs assessed values. The results show that the hypothesised influence of structural and locational housing characteristics on residential property prices is the same for assessed values, and actual market prices cannot be accepted. This finding should act as a caution for hedonic practitioners not to base their conclusions and recommendations solely on the use of assessed values in hedonic price models.
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Actual property values are overwhelmingly employed as a dependent variable in hedonic pricing models. Yet, assessed property values are generally more readily available than actual sales values and have, in some studies, been used in lieu of market prices. In this study, we compare estimates of different non-market amenity values based on actual transactions and assessed values. We estimate a Seemingly Unrelated Regression (SUR) model with two hedonic price equations, one with actual market values as the dependent variable and the other with assessed property values, and compare the resulting estimates of shadow prices for open space amenities. We also take into account spatial autocorrelation and combine Method of Moment estimates of the spatial parameters in both equations to create our test statistic. The results indicate that we cannot accept the hypothesis that the impacts of open space on property values are the same for actual sales and assessed values. Moreover, we do observe some differences between the distributions of assessed versus sales values, although the difference between the sizes of open space effects measured within the two equations is rather limited. Thus, while this one study is insufficient to enable one to draw definitive conclusions, there remains the possibility that policy makers cannot reliably base decisions on amenity values obtained from a hedonic model using assessed values.
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This paper examines the impacts of a multi-purpose trail on residential property values in a hedonic model. Using a large housing data set in combination with street network distances, we show that proximity to trail entrances positively effects property values. Among other things, our study compares the hedonic model results from three different spatial specifications. We pay specific attention to the direct and indirect effects on residential property prices associated with potential changes in house characteristics. In addition, our study predicts property values around trail entrances using a ‘modified spatial predictive process’ approach that is well suited for capturing spatial dependence in large data sets.
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Leisure and tourism facilities are known to influence property value. Previous studies have found natural resources to have a positive impact on the price of surrounding properties. More recently, scholars have turned their attention to “built” tourism resources, such as resorts and sports facilities. “Tourism real estate” emerged in China in the 1990s. Contrary to traditional housing projects, tourism real estate is characterized by the development of large-scale tourism resources (e.g. resorts and theme parks) along with residential properties, under the assumption that they would increase property value. However, the effects of such “built” tourism resources on housing value have not been empirically examined. This study investigates the determinants of tourism real estate prices, with an emphasis on the impact of theme parks. A hedonic pricing model was built using a sample of 294 real estate transactions in the Overseas Chinese Town area of Shenzhen, China. Findings indicated that while distance to metro and the architectural features of the property itself had significant positive effects on tourism real estate value, distance to theme parks was found to have a negative effect on price. As the constructions of theme parks alongside residential/vacation properties represent a typical model of tourism real estate, findings urge the industry to reconsider the development of theme parks and its impact on the surrounding environment.
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Evaluating the impact of tourism on housing prices is an important endeavour, but the usual empirical approach is to estimate a single regression model with house price as a function of tourism and other variables. This approach does not allow for individual heterogeneity. In this paper the authors apply a latent class model to estimate the impact of tourism activities on housing prices in Italy. In particular, they allow for three different unobservable classes or regimes, permitting the impact of tourism on house prices to differ across classes. In other words, they allow for unobservable heterogeneity. The empirical results do support the existence of three classes of house price regressions. Using two different indices of tourism activity, for certain cities (about 21% to 48% of the sample) increases in tourism activity increase housing prices and for other cities (8% to 17%) increases in tourism activity decreases housing prices. For approximately half of the sample, increases in tourism activity have no impact on housing prices.
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Using the largest sample of European golf clubs, this study examined different attributes that affect green fee prices to better understand the stagnated European golf market. First, we identified different European sub-markets. We derived a hedonic pricing model from previous research and then calculated log-linear OLS regressions. We selected different prices for a round of golf as dependent variables and considered twelve objectively measurable golf club attributes as well as market or country variables. The dispersion of green fees among European golf clubs can primarily be explained by differences in the age of the club, the length of the golf course, three infrastructure and service attributes, environmental certification, top placement in the ranking of the best golf courses and the golf club's market or country. The findings clearly illustrate that the European golf market cannot be considered a single market and thus that different stakeholders within this market have to consider these differences in their golf management.
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Assessing levels of equity inherent in the distributions of the public open spaces that they manage is an important responsibility of park and recreation agencies. Multivariate regression offers one way of conducting such assessments. However, traditional ordinary least squares (OLS) techniques fail to explore important local variations in relationships among variables. This study explored the utility of geographically weighted regression (GWR) in an equity analysis of public beaches in the Detroit Metropolitan Area. The GWR models exhibited substantial improvements in model performance over the OLS models. GWR offers public leisure agencies a powerful technique through which to better understand local patterns of access and equity, ultimately leading to the formulation of more effective and efficient recreation planning and management policies.
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Purpose This study aims to analyze whether urban tourism affects Berlin housing rents. Urban tourism is of considerable economic importance for many urban destinations and has developed very strongly over the past few years. The prevailing view is that urban tourism triggers side-effects, which affect the urban housing markets through a lack of supply and increasing rents. Berlin represents Germany’s largest rental market and is particularly affected by growing urban tourism and increasing rents. Design/methodology/approach The paper considers whether urban tourism hotspots affect Berlin’s housing rents, using two hedonic regression approaches, namely, conventional ordinary least squares (OLS) and generalized additive models (GAM). The regression models incorporate housing characteristics as well as several distance-based measures. The research considers tourist attractions, restaurants, hotels and holiday flats as constituents of tourism hotspots and is based on a spatial analysis using geographic information systems (GIS). Findings The results can be regarded as a preliminary indication that rents are, indeed, affected by urban tourism. Rents seem to be positively correlated with the touristic attractiveness of a particular location, even if it is very difficult to accurately measure the real quantity of the respective effects of the urban tourism amenities, as the various models show. GAM outperforms the results of OLS and seems to be more appropriate for spatial analysis of rents across a city. Originality/value To the best of the authors’ knowledge, the paper provides the first empirical analysis of the effects of urban tourism hotspots on the Berlin housing market.
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Research question: Golf courses generate revenue from two sources: memberships and green fees. Particularly in Europe, golf clubs rely on income from memberships. We examine the factors that are generally relevant to golfers when paying green fees or becoming club members. We compare the findings to evaluate the differences between the two revenue sources. Research methods: We compile a database of N = 669 German golf courses for the 2015 season to test the hedonic price models of membership fees compared to green fees on both weekdays and weekends. In addition, beyond the attributes of golf courses that are usually investigated in the literature and can be characterized as market determinants, we capture management determinants such as quality certificates. A comparison of the log-linear ordinary least squares and quantile regressions on the three price constructs reveals fruitful insights for price differentiation. Results and findings: The empirical analysis indicates that the dispersion of membership fees among golf clubs can mainly be explained by differences in the number of holes, the golf course’s difficulty, its proximity to a large city, and two certificates. For the pricing of green fees, the number of holes, a competitive market situation, and the course’s difficulty and age are important factors. Implications: The findings indicate not only the similarities but also the differences between memberships and green fees. In terms of practical applications for golf clubs, developing group-specific marketing strategies and suitable offers for club members and guest golfers would help improve long-term club viability.
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The tourism effects on housing prices within cities and regions have been analyzed in the literature, but there is a lack of evidence on the spatial effects of these processes. In areas hit by overtourism, house price hikes have the potential of spillovers to adjacent cities and towns as well as across wider space. Our study widens existing knowledge on the tourism-housing relationship by exploring the existence and extent of spatial spillovers from tourism-intensive cities and towns on housing prices of neighboring areas. A Durbin spatial autoregression panel model is applied on a population of cities and towns from Croatia, one of the small tourism-driven European economies during the 2012–2019 period. Different spatial weight matrices are applied to the model to explore the spatial reach of effects. Our findings, robust to the use of different tourism activity proxies, provide support to the existence of spatial spillover effects. The strongest effects of tourism on housing prices within and between cities come through the conversion of housing stock in rental properties rather than through the increase of private accommodation share in total accommodation capacities. Particularly strong effects are found once full spatial correlation is taken into account.
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This work uses a multivariate panel Granger causality test to examine the causal relationship between tourism and house prices (HP) in China’s 31 major regions for the period from 2000 to 2016, accounting for both dependency and heterogeneity across regions. The results of this study support evidence for the tourism-leading hypothesis in regions such as Anhui, Jilin, Beijing, Liaoning, Zhejiang, Chongqing and Yunnan, while the HP-leading hypothesis relationship supports evidence for a region such as Shanghai.
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This research investigation falls in the very few studies that seek the association between city development and sustainable urban planning. This study emphasized to examine and explore effects of urban village disamenity on Nanjing suburban and posh area property valuation. Globally, slums exist in almost every country; however, researchers focused less on slums' crumbled infrastructure, crimes, and other social problems; however, few kinds of research studies covered the adverse impact on the property value. This paper plans to seek the effects of rural area migrants on Nanjing City in response to the late 1970 economic reform implementation as they aimed to extract benefits of reforms offering enhanced economic opportunities, higher rate of income and employment, and comprehensive social benefits. This study examined the negativity of urban villages on the surrounding area valuation and its impact on residential properties. The results of this study specified an adverse effect of urban villages on the value of nearby apartments; however, residential units closer to these villages experienced the worst impact compared to the residential apartments located far away. The findings revealed that urban villages' neighborhood negatively influences home selling value when compared with other houses located far away. This study is helpful for government officials and policymakers to resolve urban villages' issues.
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This research investigation falls in the very few studies that seek the association between city development and sustainable urban planning. This study emphasized to examine and explore effects of urban village disamenity on Nanjing suburban and posh area property valuation. Globally, slums exist in almost every country; however, researchers focused less on slums' crumbled infrastructure, crimes, and other social problems; however, few kinds of research studies covered the adverse impact on the property value. This paper plans to seek the effects of rural area migrants on Nanjing City in response to the late 1970 economic reform implementation as they aimed to extract benefits of reforms offering enhanced economic opportunities, higher rate of income and employment, and comprehensive social benefits. This study examined the negativity of urban villages on the surrounding area valuation and its impact on residential properties. The results of this study specified an adverse effect of urban villages on the value of nearby apartments; however, residential units closer to these villages experienced the worst impact compared to the residential apartments located far away. The findings revealed that urban villages' neighborhood negatively influences home selling value when compared with other houses located far away. This study is helpful for government officials and policymakers to resolve urban villages' issues.
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This study develops a framework that quantifies golf course pesticide risk, explores environmental and economic factors that may be responsible for the observed risk, develops a method to compare golf course pesticide risk to other agricultural crops and investigates how pesticide risk on golf courses can be most effectively reduced. To quantify pesticide risk, we adapt the Environmental Impact Quotient (EIQ) and hazard quotient models for use on golf courses. The EIQ model provides an estimate of overall environmental risk, while the hazard quotient model, as applied here, provides an estimate of pesticide risk to mammals. This novel framework was applied to twenty-two courses in Wisconsin and New York, USA. Using both pesticide risk models, all twenty-two golf courses showed a high coefficient of variation of pesticide risk (<0.76). Within a golf course, mean absolute pesticide risk was at least two times higher on fairways than on greens, tees, or roughs. Mean area normalized risk was at least three times higher on greens than the other three golf course components. Pesticide risk of a component-weighted average of greens, tees, fairways and roughs on each course were within the range of pesticide risk calculated for five other agricultural crops. Our data suggest that variation in pesticide risk on golf courses is related to economic factors, such as maintenance budget, and can be effectively lowered by reducing pesticide use on fairways and selecting products of lower risk. To assist golf course superintendents in developing programs that lower pesticide risk, a new metric was developed: the Risk to Intensity Quotient (RIQ). The RIQ is the ratio of pesticide risk to use intensity and quantifies the average risk of product selection by a golf course superintendent.
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The main purpose of the paper is to provide a monetary valuation of social benefits in connection with the hypothetical implementation of technological innovations at four Euro 2012 stadiums in Poland. Not only the construction of the sport’s arenas, but also the ongoing maintenance drain the pockets of Polish taxpayers. At the same time Euro 2012 stadiums remain underused, which familiarize the host cities with the concept of ‘white elephants’. Due to the application of the contingent valuation method (CVM), the social effects obtained by the residents of four Polish cities were linked to proposed technological innovations, which were given appropriate monetary values. The research has proved the importance of technological innovations at the Euro 2012 stadiums in Poland. As a result, the residents of four Polish cities valued the social benefits related to the implementation of these innovations at PLN 70 million (USD 18 million).
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This paper aims to examine the relationship between tourism activities and housing prices (HP) in China’s eight central provinces using wavelet transform context structures. This innovative technique allows the decomposition of a time series at different time frequencies. In this work, the researchers used continuous wavelets, wavelet coherence and wavelet phase-difference based on Granger causality analysis to investigate the relationship between tourism activities and HP. The study results indicate that the relationship is generally positive but changes over time exhibiting low to high-frequency cycles. The government needs to increase tourism demand and further provide and nurture the expansion of tourism supply.
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Preamble: The Crisis The U.S. golf course real estate development business is in the emergency room and hoping that the current crisis in the golf industry is just a severe case of economic indigestion instead of painful contractions that are symptomatic of a paradigm shift in the supply of golf courses and demand for the game. Suddenly, there is a voice over the intercom and someone calls "Code Blue." Unfortunately, the prognosis for the health and vitality of golf's built environment is not good. Some industry pundits wistfully believe that golf's health crisis is no more than a temporary imbalance between supply and demand, and that it will heal naturally once the game sheds 1,500 to 2,000 golf courses. However, that laissez-faire attitude will lead to an unmanaged outcome and the root causes for the industry's chronic condition will persist if it is not diagnosed correctly and left untreated. The history of the golf industry's built environment in the 20 th century has reflected the changing face of the game in terms of the number, type and kind of golf courses built, as well as the demographic profile of those playing the game. The historical analysis of the industry's built environment provides some insight as to how the game and business of golf has responded to the various socio-economic forces that have redirected and reshaped the game. Most recently, the game has taken a turn for the worse, which was directly related to the golf course development boom period in the 1990s when 60% of the golf courses built were tied to real estate development. The influential role that real estate developers played in this regard is of particular note, because too many golf courses were built, too much was spent on developing them and, as a result, many of these golf courses are not financially viable enterprises. Also, these golf courses were often too difficult, too expensive and took too long to play, which has eventually translated into having a large number of golf courses that do not meet the needs of the golf industry's ultimate consumers… average golfers. The reason for this Code Blue alert is to challenge the conventional wisdom that everything will be back to normal once the economy turns around and the golf industry loses 10% to 15% of its golf course inventory. But, it is clear that the underlying reasons for the current crisis are more complicated than this naïve scenario portrays. Can the golf industry be sustained at the prognosticated lower level if it continues to ignore the needs of its customers? And, more importantly, can the golf industry be sustainable if its product and services (golf courses) are not sustainable? Most of the golf courses built during the 1990s are not environmentally sensitive, economically viable and socially sustainable. This paper is a "Code Green" call to resuscitate the golf industry by fostering the redevelopment of its built environment into sustainable golf courses.
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The importance of location is well known in the literature on real estate valuation. Our study extends this body of literature by being first to examine empirically the effect on the selling price of single-family residential properties when they abut a golf course. We determine the incremental effect on the sales price of houses on the golf course by fitting a standard hedonic pricing model to a sample of 717 sales transactions drawn from a suburban area of a large city. We employ a matched-pair research design to hold constant the price effects of other location factors on these golf course properties. Our results indicate that a golf course location adds 7.6 percent to a property's sales price. We believe this finding is of interest to developers in their design of a golf course subdivision and to appraisers who wish to make location-specific value adjustments of golf course properties. Copyright 1995 by Kluwer Academic Publishers
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The real estate market consistently demonstrates that many people are willing to pay a larger amount for a property located close to a park than for a house that does not offer this amenity. The higher value of these residences means that their owners pay higher property taxes. In many instances, if the incremental amount of taxes paid by each property which is attributable to the presence of a nearby park is aggregated, it is sufficient to pay the annual debt charges required to retire the bonds used to acquire and develop the park. This process of capitalization of park land into the value of nearby properties is termed the “proximate principle.” Results of approximately 30 studies which have empirically investigated the extent and legitimacy of the proximate principle are reported, starting with Frederick Law Olmsted's study of the impact of New York's Central Park. Only five studies were not supportive of the proximate principle and analysis of them suggested these atypical results may be attributable to methodological deficiencies. As a point of departure, the studies' results suggest that a positive impact of 20% on property values abutting or fronting a passive park area is a reasonable starting point. If it is a heavily used park catering to large numbers of active recreation users, then the proximate value increment may be minimal on abutting properties, but may reach 10% on properties two or three blocks away.
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The thesis of the work is that statistical analysis can reliably measure individual preferences for different aspects of the built environment. These measurements can be used to understand and critique the effectiveness of existing neighborhoods in meeting the needs of residents, and to develop proposals for new neighborhoods. The research uses hedonic regression analysis to quantify the market value of specific attributes of housing quality, location and neighborhood at sites near Dallas, Texas. Measurements of location value in the form of travel-based rent gradients, proximity measures, and path characteristics are derived from these analyses. The research allows designs to be produced and critiqued with a better understanding of both homeowner preferences and market feasibility. It links the design process to a market-based feedback mechanism, and allows designers to make decisions that are more responsive to a project's social and economic site.
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There has been extraordinary growth in the past decade in the number of golf courses that have been constructed as central components of residential developments. The reasons underlying this growth are discussed. The basic five alternative configurations of golf courses are described, together with the edge effect which is the key to their differing impact on a development's property values.
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The relationship between a home's sale price and its proximity to different open spaces types is explored using a data set comprised of single-family home sales in the city of Portland, within Multnomah County, between 1990 and 1992. Homes located within 1,500 feet of a natural area park, where more than 50% of the park is preserved in native and/or natural vegetation, are found to experience, on average, the largest increase in sale price. The open space size that maximizes a home's sale price is calculated for each open space type. Natural area parks require the largest acreage to maximize sale price, and specialty parks are found to have the largest potential effect on a home's sale price. A zonal approach is used to examine the relationship between a home's sale price and its distance to an open space. Natural area parks and specialty parks are found to have a positive and statistically significant effect on a home's sale price for each zone studied. Homes located adjacent to golf courses (within 200 feet) are estimated to experience the largest increase in sale price due to open space proximity although the effect drops off quickly as distance from the golf course increases. Copyright 2001 Western Economic Association International.
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