THE INFLUENCE OF VINTAGE ON HOUSE VALUE

This research provides a significant step towards understanding the relationship between house vintage and value. This study analyses residential sales transactions in New Zealand using hedonic pricing models and uncovers evidence that a home’s vintage is a commodity that commands price premiums or discounts. Vintage is found to have a nonlinear influence on sales price and this relationship differs from market to market. In particular, wealthier markets witness a greater vintage effect, with turn-of-the-century homes realising 15 % price premiums over new homes. In contrast, less wealthy markets tend to apply discounts of 20 % to 40 % to houses of the same vintage