Human beings have persistently searched for the ideal environment. How it looks varies from one culture to another but in essence it seems to draw on two antipodal images: the garden of innocence and the cosmos. The fruits of the earth provide security as also does the harmony of the stars which offers, in addition, grandeur. So we move from one to the other: from the shade under the baobab to the magic circle under heaven; from home to public square, from suburb to city; from a seaside holiday to the enjoyment of the sophisticated arts. Seeking for a point of equilibrium that is not of this world. '' Tuan (1974) 1 Analysing residential location and land value: some background Over the last few decades a certain fragmentation of economy and society has taken place on a global scale (for example, Lash and Urry, 1994). On the other hand, the meaning of the term`place' has become a key element in many of the phenomena affected by such fragmentation. One notable observation with substantial social and economical significance is that the marketplace for landed property has become more complex, involving more actors and informal networks. This also brings inevitable implications for housing-market analysis. To cite Landis et al ( 2002),``even as the economy and capital markets have gone global, housing markets have gone local.'' The stronger the connection between the economy and housing markets, the stronger the competition between locations and the larger the differences in attractiveness between winner and loser locations. Probably all of us have heard the proverbial`location, location, location' when discussing the determinants of urban property markets (for example, Orford, 1999, page 1). However inflated the phrase may be, it is not just a business slogan.