The value of green and blue space: Walkability and house prices

Abstract

Urban green and blue spaces are important amenities within highly urbanised areas which offer social, economic and ecological benefits and provide a number of valuable direct and indirect ecosystem of services to surrounding land uses, urban households integral to sustainable urban development. Existing research has revealed that green and blue spaces are not uniform environmental amenities, but rather a set of distinct goods comprising aesthetic and hydro-morphological characteristics therefore which can influence property values. Consequently, the purpose of this study is to examine the heterogeneity of green and blue spaces using 4985 sales transactions applying quantile regression to investigate the proximity effects of these urban amenities on property prices within the Belfast Metropolitan area, Northern Ireland. The findings show premiums for green features range between 3.0 % and 3.6 %, with blue space proximity to the coastline and lakes commanding premiums of 7.3 % and 5.3 %. Conversely, walking distance to large rivers shows a negative pricing effect of 3.8 %. The results further reveal some evidence of distance decay effects with proximity for green and blue space amenities. The quantile findings show empirical evidence of a U-shape relationship for a number of the green space amenities, indicating that lower and higher priced houses value proximity to these urban amenities differently. For urban blue spaces, the findings reveal that living near to a lake or the coastline observes larger premiums for higher priced properties. Moreover, the highest priced dwellings exhibit a higher negative pricing effect with walkability to urban rivers than those in the lowest priced properties. Overall, the findings provide empirical evidence to inform urban design and planning in line with sustainable development goals and biodiversity strategies for inclusive, and accessible public spaces within cities.