An hour of sunlight a day on a property can add 2.4% to its value, according to a study by economics research group Motu.
The Motu authors of the report used more than 5000 house sales in Wellington to come up with their conclusions about the amount people are prepared to pay for sunlight when choosing a house or apartment.
The authors chose the core metropolitan area of Wellington because it is small, its economy and housing market have been stable, and it has several hills and valleys, resulting in large variability of sunlight within small neighbourhoods. The average house was a 3.3 bedroom 84-year-old home valued at $632,000.
The average house in the sample received 8.7 hours of sunlight per day, on average, across the year. But some houses received just 3.7 hours of sunlight across the year, while some received more than 11 hours.
"These results imply that, regardless of the suburbs where purchasers choose to locate, after controlling for neighbourhood characteristics and house attributes, people are still willing to pay a premium of around 2.4% of the total house value. If a multi-storey development was going to block three hours of direct sunlight a day on two houses each valued at $1 million, the loss in value to the house owners is in the order of $144,000. Instead of regulating building heights or the site envelope for the new development, the developer could be required to reimburse each house owner $72,000. Developers could also use this information in deciding how much to bid for land"
Motu concluded the value may be higher or lower depending on climate, topography, city size and incomes. Motu could not find any published research that rigorously estimated the value of sunshine that there were related areas of research. These studies generally found higher prices for apartments on upper storeys with greater access to sunshine. Source: https://www.stuff.co.nz
What does this mean for you? When it comes to selling your property it's important to prepare your property for sale and part of this process is to ensure you let the light in. Make sure the windows are sparkling before every viewing. The cleaner the windows are, the more light there is and the better the property will look.