Presentation on theme: "Impact of HVOTL on Residential Property Value: An Australian Case Study Overh Transmission Lines on Property Value – An Australian Residential Case of."— Presentation transcript:
Impact of HVOTL on Residential Property Value: An Australian Case Study Overh Transmission Lines on Property Value – An Australian Residential Case of High Voltage Overhead Transmission Lines on Property Value – An Australian Residential Case Study Peter Elliott
Overview The background The research question Research methods Results
The antecedents of HVOTL provision The post placement impacts The effect on individuals The impact on communities The effect on homeowners Background
Theoretical Framework HVOTL as a technological hazard and risk Externalities Risk assessment Perceived or real threat Perceptions to the homeowner Real estate behaviour and impact on prices
What has been done before? Overseas studies on post placement impact Overseas studies on public perceptions No published studies in Australia A lack of a comprehensive framework and model – antecedents of HVOTL provision as well post placement impacts. Specified facilitative models needed to assist in analysing the problem comprehensively.
The research questions What are the causes of variation in the homeowners risk perceptions and reactions when electricity suppliers propose new HVOTL infrastructure? What are the effects of HVOTL provision on the homeowners property values?
Methodology Focus groups Public telephone surveys Quantitative studies of possible post placement impacts on property value
Telephone Survey Telephone numbers were taken from three stratified sets of postcodes from a computerised White Pages (residential directory for Queensland) to ensure that sufficient numbers in the urban, peri-urban and rural sub- samples were obtained for purposes of comparison. Systematic random sampling was used, in that every n th telephone number was dialled, on a rotational basis, until the quota was achieved. The n th number was determined by dividing the telephone numbers available by the required quota. A demographically representative cross-section of the population normally falls into place by employing this method of telephone contact. Respondents were screened for home ownership status and then neighbourhood by asking whether where they lived could be described as: A built-up urban area, living close to neighbours Peri-urban acreage or semi-rural living A truly rural area, as in living on a farm
Independent Variables Extremely Negative Negative Urban (ref rural) Rural Residential (ref rural) Gender (ref female) Professional Occupation (ref not employed) Non-Professional Occupation (ref not employed) Intervening Variables Concern about health risks Concern about visual/noise impacts Concern about safety risks Concern about environmental impacts Concern about property interference Summary of Significant Predictors of Negative/ Extremely Negative Attitude to HVOTL Placement × Significant predictors at p < 0.05;
Homeowners and Professional Stakeholders showing Very High Concern for HVOTL Risks
Percentage Reduction in Value Figure 6 Homeowners and Professional Stakeholders showing Perceived Impacts on Property Value
House location Altitude Latitude? Longitude House sale date 1 st Sales Date 2 nd Sales Data 3 rd Sales Date 4 th Sales Data House sale prices 1 st Sales Price 2 nd Sales Price 3 rd Sales Price 4 th Sales Price Number of Bedrooms Continuous Number of Toilets Continuous Number of Garage Continuous Land size Per sq metre Building Age Year of Built HVOTL variables Proximity to HVOTL Metre VisibilityHigh Moderate Low Invisible Selected housing attributes and HVOTL externalities
Sold houses in Eight Mile Plains by distance buffers 2001 to 2010
P(price of house) = f (housing characteristics, h1, h2…,hk, HVOTL externalities e1, e2…ek, other factors r1, r2…rk). Hedonic Regression Equation
Property price estimates using the proximity of HVOTL and degree of visual encumbrance. degree of visual encumbrance. Scheme 1 Scheme 2 Scheme 3 BStd. Beta B B (Constant)5832.389 -24759.165* -83910.924* Bedrooms63907.084***0.35662557.489***0.349 60389.708***0.337 Baths21383.383***0.17220611.734***0.166 20403.040***0.164 Garages28334.699**0.11328044.342**0.111 28651.166**0.114 Land size153.639***0.186171.164***0.208 185.899***0.225 Distance to HVOTL 60.174**0.112 Visual Prevalence 31304.899***0.152 R2R2 0.559 0.3250.334 Adjusted R 2 0.306 0.3170.326 F-value 46.097 38.90140.572 Significance of F-value 0.001 N (obs) 409 *** P < 0.001 ** P < 0.01 *P < 0.05 Table 11.4: Property price estimates using the proximity of HVOTL and degree of visual encumbrance.
The property sale prices within 50m distance from the HVTOL (Red marked) are 20% less than the mean house price within Eight Mile Plains. The distance between 50 and 100m shows approximately 15% lower than the mean price. The mean property price between 100 and 200m is $370,000, around 7% lower than the mean sale price. However, it seems that there is little impact on the property prices if distances over 200m Descriptive Statistics
250 275 300 325 350 375 400 425 450 475 500 300m200m100m50m Distance Local mean price Suburb mean price