IS GREEN A PREMIUM? AN INVESTIGATION ON THE IMPACT OF URBAN PARK ON HOUSING PRICE
DOI:
https://doi.org/10.21837/pm.v24i43.2118Keywords:
Housing Price, Landscape, Green Premium, Urban Park, Hedonic Pricing ModellingAbstract
Urban green spaces are increasing recognised as an important element of residential development. In line with this, this study aims to quantify the extent to which urban park landscape features contribute to housing prices. This study utilized residential transaction data spanning from 2016 to 2023 across three major housing areas, incorporating both conventional and modern landscape designs. This study employs hedonic price modelling to estimate the green premium via Ordinary Least Squares regressions. The findings suggest a positive correlation between housing prices and the presence of urban parks, indicating the existence of a “green premium”. The research contributes to the literature by providing empirical evidence of the urban park landscape's economic value in the housing market. It underscores the critical role of urban park landscape in shaping the economic dynamics of the housing market. It provides valuable insights for urban planners, valuers, financial institution and policymakers in advocating for a holistic approach to urban development that harmonizes economic objectives with environmental and aesthetic considerations.
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