Three-dimensional land-use configuration and property prices: A spatially filtered multi-level modelling perspective

Abstract

The influence of neighbourhood characteristics on housing prices has gained increasing attention from scholars in recent decades. However, studies on the three-dimensional nature of urban space, and particularly the vertical dimension, have remained limited. This study investigates previously unexplored variables that can capture the vertical and horizontal dimensions of land-use configuration. In addition, this study proposes a spatially filtered multi-level approach to modelling variations in property values which can capture both spatial and multi-level effects. The research findings reveal a price premium for housing located in immediate neighbourhoods with more open mid-rise buildings and low plants. The results also demonstrate the varying effects of determinants of house pricing in spatially heterogeneous zones.