When and where do we see the proximity effect of a new park? –A case study of the Dream Forest in Seoul, Korea

Abstract

This study aimed to unpack the dynamic proximity effects of a park on residential values in the urban regeneration context: first by the development phase of the park, and second, by specific characteristics of the residential units. The study site is the Dream Forest in Seoul, South Korea, and the study period is from 2006 to 2015. The two-fold multilevel regression analysis suggests that the Dream Forest began exerting proximity effects from the time of site acquisition by the city, which peaked at a 3.7% price increment per 100-meter distance to the park from a prototypical housing unit, soon after the public announcement of the park procurement plan. During construction, inauguration and stabilization, the effect has remained at around 3.0%. The analysis also suggests that the proximity effect applies unevenly to housing units: apartment type or older housing units are more sensitive to the externality effects than their counterparts – multifamily type or newer housing units.