Understanding the local impact of urban park plans and park typology on housing price: A case study of the Busan metropolitan region, Korea

Abstract

The valuation of urban parks using hedonic pricing has been thoroughly documented in a number of studies set in many cities. Just as the value of existing parks can be estimated by investigating the relationship between housing prices and parks, the value of future parks can also be estimated using this approach. This study recognized that a series of planning processes and land use transitions to create urban parks not only influences the perceptions of real estate buyers but also the quality of the local environment. From the apartment sales data for the Busan metropolitan region of Korea, data on 11,498 sales of apartments within walking distance to planned parks (as well as existing parks) were collected. These data were applied in an analysis comprising three categories describing different planning contexts for the parks: “comprehensive plans,” “implementation plans,” and “completed parks.” A set of explanatory variables representing housing, park, and neighborhood characteristics was selected, with additional remarks regarding the planning specifications that might influence apartment buyers’ perceptions, such as the park type and the age of a plan, as defined in the official plans of the city. The results showed that smaller park types in residential settings were preferred throughout the processes of park planning, while all types were preferred once the processes were completed. The preference in park types is likely associated with the quality of the planning guidelines as well as the size of the project and the duration of planning.