Influence of urban design master plans on property sub‐markets: two case studies in Brisbane

Abstract

PurposeThe purpose of this paper is to consider the impact of urban design master plan projects in the Australian context of Brisbane. It first reviewed the general ramifications of urban design projects on property markets. The local impacts of two major projects were then analysed and compared. A limited statistical analysis was conducted to investigate whether local price growth could be attributed to the projects or resulted from generally buoyant market conditions.Design/methodology/approachThe paper adopted a largely descriptive approach. It first reviewed the theoretical outcomes urban design projects should deliver. It then looked at the specific details of two distinct urban design projects in Brisbane and descriptively assessed their impact on adjacent local housing markets. It then compared relative aggregated location price growth to isolate discernable project price effects. Finally, the paper anecdotally selected some master designed properties and considered whether their prices were excessive compared to average location rents.FindingsThe paper found conflicting evidence to support the view that urban design projects significantly lifted aggregated location prices. On the one hand, aggregated project location price growth was relatively muted. Other generic demand factors and local differences in housing stock quality swamped project effects. On the other hand, at the individual property level, there was some anecdotal evidence to suggest premiums were paid for urban designed homes. The paper indirectly suggests, then, that any price impacts of urban design projects are subject to rapid distance decay.Research limitations/implicationsThe paper conducted only a limited historical review of revitalisation and urban design. A systematic individual, project‐adjacent, property price analysis was not conducted. Rather, the aggregated dwelling price analysis and anecdotal rental review suggested, albeit inconclusively, that the effects of urban design are spatially restricted to the immediate vicinity of projects.Practical implicationsInvestors should note likely price impact of planned infrastructure projects is spatially restricted to the immediate environs of the project.Originality/valueThe paper combines an overview of urban design and property market analysis.