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| Intra-Project Externality and Layout
Variables in Residential Condominium Appraisals Author: Su Han Chan, Shin-Hering Michelle Chu, George H. Lentz, and Ko Wang Start Page: 131 Abstract: This study examines the impact of intra-project externalities and
layout variables on the selling prices of 897 condominium units in the cities of Irvine
and Santa Ana in Orange County, California. It documents that, at a micro-level, proximity
to intra-project externalities such as greenspace, swimming pools, recreational areas,
traffic noise, and the like, and project layout variables representing the location of
individual condominium units within multiunit structures, have significant effects on the
property values of units within a condominium project. The results indicate that, when
cost is not prohibitive, both appraisers and underwriters should take intra-project
externalities and layout variables into consideration when estimating property values or
underwriting residential mortgages for condominium properties. |
