Two-Stage Spatial Hedonic Model on Newly Built Condominiums in the Tokyo Housing Market

After the Great East Japan Earthquake, energy conservation and earthquake resistance in buildings have become matters of increasing concern for residents. In this research, an empirical analysis is conducted to measure the effect of environmental investment on housing prices, particularly those of newly built condominiums. We use a dataset covering 55 buildings with 796 dwelling units that were sold in Tokyo’s 23 wards in 2011. Results of estimation using a two-stage spatial hedonic model show that high solar power utilization in buildings has a significant positive effect on housing prices.