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Study puts price on sunshine homes get

NZ Newswire logoNZ Newswire 28/06/2017

Property buyers in the capital value their sunshine - and what may be a world-first study has found exactly how much they're willing to pay for golden rays.

Home buyers in Wellington are, in fact, on average willing to pay 2.4 per cent extra for every additional hour of sun a property gets daily, according to new research from the Motu Economic and Public Policy Research Trust.

The trust's researchers put together detailed Real Estate Institute data on house features and sales between 2008 and 20014 and then combined it with detailed maps from Wellington's council to figure out how much light each house was getting.

Motu says it is a world-first study into sunshine hours and property values.

The study's co-author, Arthur Grimes, says the research was designed to put an exact price on sun so people could potentially be compensated for nearby development.

"At present the impact of a building that is designed in a way that will shade its neighbour is controlled by often inflexible regulations that specify building parameters," he said.

"This research is designed to put a value on sunlight, so that the change can be priced, potentially enabling compensation for affected owners and better valuation of development sites."

For example, if a developer was considering building a multi-storey unit next door, a home-owner could work out, and potentially claim back, what the effect on their property price would be.

And as for outside the capital, the researchers say the same method would be easy to apply elsewhere.

"The value of sunshine hours may be higher or lower depending on factors such as climate, topography, city size and incomes," Dr Grimes said.

"Nevertheless, our approach can be replicated in studies for other cities to help price the value of sunlight in those settings."

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