RDP 2018-03: The Effect of Zoning on Housing Prices Appendix B: Detailed 2016 Detached Housing Regression Results

Ross Kendall and Peter Tulip

March 2018

Table B1: Sydney Hedonic Equation Estimation Results
  Small Medium Large
Log land area 0.241 (0.016) 0.226 (0.016) 0.238 (0.018)
Bedrooms 0.049 (0.003)    
Bathrooms 0.091 (0.004)    
3 bedrooms (baseline: 1–2 bedrooms)   0.049 (0.010) 0.059 (0.012)
4 bedrooms   0.111 (0.011) 0.120 (0.017)
5 bedrooms   0.149 (0.011) 0.161 (0.020)
6+ bedrooms   0.146 (0.013) 0.168 (0.027)
2 bathrooms (baseline: 1 bathroom)   0.059 (0.005) 0.030 (0.016)
3 bathrooms   0.145 (0.008) 0.099 (0.024)
4 bathrooms   0.218 (0.014) 0.158 (0.032)
5+ bathrooms   0.312 (0.025) 0.231 (0.037)
1 car space (baseline: 0 spaces)   0.069 (0.010) 0.059 (0.009)
2 car spaces   0.106 (0.009) 0.091 (0.009)
3+ car spaces   0.121 (0.010) 0.109 (0.009)
Swimming pool   0.047 (0.005) 0.045 (0.005)
Air conditioned   0.029 (0.004) 0.021 (0.003)
Ducted heating   0.023 (0.005) 0.017 (0.005)
Scenic view   0.047 (0.011) 0.044 (0.011)
Occupant: renter (baseline: owner-occupier)   −0.014 (0.004) −0.011 (0.004)
Occupant: govt – rented   −0.051 (0.008) −0.053 (0.007)
Occupant: govt – other   0.160 (0.057) 0.177 (0.058)
Bedroom to bathroom ratio     −0.011 (0.009)
Dummy: has floor area data     −0.158 (0.021)
Log floor area     0.030 (0.004)
Dummy: has year built data     0.037 (0.010)
Built 1930–1949 (baseline: built before 1930)     −0.017 (0.007)
Built 1950–1979     −0.063 (0.010)
Built 1980–1999     −0.055 (0.011)
Built 2000–2009     0.029 (0.010)
Built after 2009     0.066 (0.010)
Dummy: has sale method data     0.046 (0.008)
Sold prior to auction (baseline: private treaty)     0.004 (0.002)
Sold at auction     0.011 (0.004)
Sold after auction     0.016 (0.004)
2016:Q2 dummy 0.022 (0.003) 0.024 (0.003) 0.023 (0.003)
2016:Q3 dummy 0.060 (0.003) 0.065 (0.003) 0.063 (0.003)
2016:Q4 dummy 0.098 (0.003) 0.107 (0.004) 0.104 (0.004)
R2 0.867 0.874 0.879
Regression standard error 0.201 0.196 0.192
Observations 43,069 43,069 43,069

Notes: Cluster-robust standard errors (clustered by LGA) in parentheses; all three specifications include suburb dummies

Sources: Authors' calculations; CoreLogic
Table B2: Melbourne Hedonic Equation Estimation Results
  Small Medium Large
Log land area 0.255 (0.013) 0.237 (0.013) 0.253 (0.013)
Bedrooms 0.060 (0.004)    
Bathrooms 0.103 (0.006)    
3 bedrooms (baseline: 1–2 bedrooms)   0.055 (0.010) 0.057 (0.012)
4 bedrooms   0.131 (0.011) 0.122 (0.016)
5 bedrooms   0.162 (0.013) 0.149 (0.021)
6+ bedrooms   0.127 (0.016) 0.129 (0.024)
2 bathrooms (baseline: 1 bathroom)   0.091 (0.005) 0.070 (0.014)
3 bathrooms   0.176 (0.010) 0.142 (0.023)
4 bathrooms   0.259 (0.017) 0.205 (0.030)
5+ bathrooms   0.291 (0.034) 0.214 (0.038)
1 car space (baseline: 0 spaces)   0.027 (0.008) 0.030 (0.007)
2 car spaces   0.064 (0.008) 0.062 (0.008)
3+ car spaces   0.076 (0.010) 0.077 (0.010)
Swimming pool   0.053 (0.010) 0.050 (0.009)
Air conditioned   0.015 (0.003) 0.013 (0.002)
Ducted heating   0.011 (0.002) 0.008 (0.002)
Scenic view   0.066 (0.016) 0.064 (0.016)
Occupant: renter (baseline: owner-occupier)   −0.034 (0.004) −0.030 (0.004)
Occupant: govt – rented   0.199 (0.026) 0.201 (0.034)
Occupant: govt – other   −0.042 (0.047) 0.026 (0.067)
Bedroom to bathroom ratio     −0.004 (0.008)
Dummy: has floor area data     −0.283 (0.029)
Log floor area     0.056 (0.006)
Dummy: has year built data     0.081 (0.013)
Built 1930–1949 (baseline: built before 1930)     −0.051 (0.012)
Built 1950–1979     −0.104 (0.013)
Built 1980–1999     −0.115 (0.014)
Built 2000–2009     −0.034 (0.015)
Built after 2009     0.007 (0.018)
Dummy: has sale method data     0.013 (0.005)
Sold prior to auction (baseline: private treaty)     0.004 (0.003)
Sold at auction     −0.009 (0.005)
Sold after auction     0.024 (0.004)
2016:Q2 dummy 0.025 (0.003) 0.027 (0.003) 0.026 (0.003)
2016:Q3 dummy 0.058 (0.003) 0.062 (0.004) 0.060 (0.004)
2016:Q4 dummy 0.101 (0.004) 0.109 (0.005) 0.105 (0.005)
R2 0.878 0.884 0.891
Regression standard error 0.180 0.175 0.170
Observations 52,177 52,177 52,177

Notes: Cluster-robust standard errors (clustered by LGA) in parentheses; all three specifications include suburb dummies

Sources: Authors' calculations; CoreLogic
Table B3: Brisbane Hedonic Equation Estimation Results
  Small Medium Large
Log land area 0.222 (0.011) 0.201 (0.013) 0.214 (0.016)
Bedrooms 0.065 (0.002)    
Bathrooms 0.126 (0.008)    
3 bedrooms (baseline: 1–2 bedrooms)   0.052 (0.005) 0.064 (0.010)
4 bedrooms   0.123 (0.007) 0.121 (0.013)
5 bedrooms   0.183 (0.005) 0.176 (0.015)
6+ bedrooms   0.162 (0.016) 0.167 (0.022)
2 bathrooms (baseline: 1 bathroom)   0.100 (0.010) 0.065 (0.013)
3 bathrooms   0.207 (0.016) 0.154 (0.026)
4 bathrooms   0.253 (0.016) 0.188 (0.028)
5+ bathrooms   0.346 (0.024) 0.270 (0.034)
1 car space (baseline: 0 spaces)   0.017 (0.009) −0.003 (0.005)
2 car spaces   0.058 (0.010) 0.028 (0.007)
3+ car spaces   0.085 (0.017) 0.060 (0.008)
Swimming pool   0.065 (0.005) 0.065 (0.004)
Air conditioned   0.050 (0.004) 0.037 (0.002)
Ducted heating   0.056 (0.006) 0.050 (0.005)
Scenic view   0.076 (0.013) 0.071 (0.013)
Occupant: renter (baseline: owner-occupier)   −0.043 (0.004) −0.036 (0.004)
Occupant: govt – rented   0.001 (0.032) 0.045 (0.048)
Occupant: govt – other   0.012 (0.042) 0.016 (0.035)
Bedroom to bathroom ratio     −0.010 (0.006)
Dummy: has floor area data     −0.248 (0.014)
Log floor area     0.046 (0.003)
Dummy: has year built data     0.045 (0.005)
Built 1930–1949 (baseline: built before 1930)     −0.006 (0.005)
Built 1950–1979     −0.069 (0.003)
Built 1980–1999     −0.049 (0.006)
Built 2000–2009     0.034 (0.007)
Built after 2009     0.097 (0.012)
Dummy: has sale method data     0.071 (0.013)
Sold prior to auction (baseline: private treaty)     0.000 (0.003)
Sold at auction     0.007 (0.013)
Sold after auction     0.017 (0.012)
2016:Q2 dummy 0.011 (0.003) 0.009 (0.003) 0.008 (0.003)
2016:Q3 dummy 0.029 (0.006) 0.026 (0.004) 0.027 (0.004)
2016:Q4 dummy 0.045 (0.003) 0.042 (0.002) 0.045 (0.001)
R2 0.794 0.814 0.828
Regression standard error 0.192 0.182 0.175
Observations 35,581 35,581 35,581

Notes: Cluster-robust standard errors (clustered by LGA) in parentheses; all three specifications include suburb dummies

Sources: Authors' calculations; CoreLogic
Table B4: Perth Hedonic Equation Estimation Results
  Small Medium Large
Log land area 0.243 (0.008) 0.224 (0.009) 0.238 (0.010)
Bedrooms 0.061 (0.005)    
Bathrooms 0.156 (0.009)    
3 bedrooms (baseline: 1–2 bedrooms)   0.051 (0.010) 0.036 (0.017)
4 bedrooms   0.106 (0.014) 0.075 (0.028)
5 bedrooms   0.160 (0.013) 0.128 (0.034)
6+ bedrooms   0.081 (0.022) 0.072 (0.043)
2 bathrooms (baseline: 1 bathroom)   0.127 (0.008) 0.065 (0.027)
3 bathrooms   0.273 (0.014) 0.168 (0.038)
4 bathrooms   0.316 (0.035) 0.200 (0.057)
5+ bathrooms   0.149 (0.113) 0.037 (0.110)
1 car space (baseline: 0 spaces)   −0.025 (0.016) −0.046 (0.014)
2 car spaces   0.042 (0.017) −0.012 (0.015)
3+ car spaces   0.076 (0.018) 0.022 (0.015)
Swimming pool   0.064 (0.005) 0.065 (0.004)
Air conditioned   0.048 (0.008) 0.021 (0.005)
Ducted heating   −0.005 (0.005) −0.001 (0.005)
Scenic view   0.110 (0.023) 0.101 (0.021)
Occupant: renter (baseline: owner-occupier)   −0.036 (0.006) −0.020 (0.005)
Occupant: govt – rented   −0.027 (0.022) 0.027 (0.024)
Occupant: govt – other   −0.142 (0.028) −0.149 (0.031)
Bedroom to bathroom ratio     −0.004 (0.015)
Dummy: has floor area data     −0.535 (0.077)
Log floor area     0.109 (0.015)
Dummy: has year built data     0.333 (0.026)
Built 1930–1949 (baseline: built before 1930)     −0.028 (0.019)
Built 1950–1979     −0.107 (0.022)
Built 1980–1999     −0.100 (0.022)
Built 2000–2009     0.015 (0.026)
Built after 2009     0.080 (0.026)
Dummy: has sale method data     0.092 (0.008)
Sold prior to auction (baseline: private treaty)     0.003 (0.003)
Sold at auction     0.048 (0.024)
Sold after auction     0.006 (0.016)
2016:Q2 dummy −0.012 (0.005) −0.011 (0.005) −0.015 (0.004)
2016:Q3 dummy −0.020 (0.005) −0.017 (0.005) −0.025 (0.005)
2016:Q4 dummy −0.028 (0.006) −0.019 (0.006) −0.027 (0.005)
R2 0.751 0.773 0.812
Regression standard error 0.216 0.207 0.188
Observations 25,480 25,480 25,480

Notes: Cluster-robust standard errors (clustered by LGA) in parentheses; all three specifications include suburb dummies

Sources: Authors' calculations; CoreLogic