Department of Economics, Nelson Mandela Metropolitan University, University Way, Port Elizabeth 6001, South Africa
du Preez, M., Department of Economics, Nelson Mandela Metropolitan University, University Way, Port Elizabeth 6001, South Africa; Sale, M.C., Department of Economics, Nelson Mandela Metropolitan University, University Way, Port Elizabeth 6001, South Africa
This paper presents an application of the conditional logit model to a small, Nelson Mandela Bay neighbourhood housing data set, with the objective of determining the impact of proximity to a low-cost housing development on nearby property prices. The results of this pilot study show that the average household in the neighbourhood of Walmer is willing to pay between R27 262 and R195 564 to be located 86m further away from an existing low-cost housing development.