MSN.com had an interesting article on the value of a view. We wondered how it compared to Maui real estate. According to work done on the mainland, and particularly in California. Here are some calculations by Earnest Siracusa regarding new subdivisions:

• 1% - 2.5%:A home on level ground overlooking unobstructed open space. For example, a house that would otherwise cost $300,000 would go for $307,500 (a 2.5% premium).
• 3% - 5%: A home just high enough to look over rooftops with a partially obstructed view. "Not a real high-quality view," as Siracusa puts it.
• 6% - 8%: A good unobstructed view but without much elevation; a home halfway up the hill, for example.
• 9% - 12%: Atop the hill with an unobstructed view of a city or open space.
• 15% - 20%: A water view. An outstanding, unobstructed view of a big lake or ocean can command up to 25% more in a development, Siracusa says. And oceanfront can cost 25% to 30% more. For example: A $500,000 house can run $625,000 with an outstanding water view. By the same token, a $1 million house jumps to $1,250,000 or more overlooking a lake.

Western Washington University Professor Earl Benson's research shows:

On average, Benson says, a full, unobstructed water view boosted a home's price about 60%; the closer the water, the higher the price. Partially blocked views still fetched a 10% to 20% premium. Today, with view properties even scarcer, he says, chances are that view premiums have risen: "The 60% that we estimated in the early '90s may be 80% or 100% today," he says.

We note that all this research examines lower priced properties than those typical for Maui real estate. For example, our research shows that for Wailea real estate the following was true in 2007:

• In oceanfront condominium complexes, panoramic ocean view units obtained per square foot sale prices 46% higher than  those with limited ocean views and 57% higher than units with no ocean views;
• In non-oceanfront condominium complexes, those percentages were 29% and 4% respectively;
• For Wailea homes and Makena homes those percentages were 37% and 66% respectively.

We agree with professor Benson's notion that those gaps are likely to widen.