The aim of this study is to add to the emerging knowledge base in the UK and be of relevance to land use planners and all stakeholders in property taxation. Urban green open spaces are valuable environmental resources often associated with positive influences for quality of life and property value.
Using a hedonic pricing specification, this paper measures the proximate effect of public green space on residential property value. It examines the relationship between 3,854 residential sales transactions and public green spaces across the Belfast housing market gathered from Land and Property Services throughout the year 2011 showing the percentage effect on property value with respect to distance to public green spaces.
The results show that, ceteris paribus, urban green space has a significant positive impact on proximate residential properties sale price for the terrace and apartment sectors and that terrace and apartment property located closer to public green spaces achieved increases in sale price of up to 49 per cent. Adjacency to green open space produced significant property value premiums in only two of the four housing types analysed, with limited statistically significant proximate effects evident for the detached and semi-detached sectors, a finding which has important social and public policy implications.
A number of empirical studies have demonstrated that public green space, such as urban parks, have a positive impact on property values. However, there is a paucity of empirical research on this relationship in the UK. This study serves to address this gap by examining the effect of public green spaces on house price within the medium-sized regional city in the UK.
McCord, J., McCord, M., McCluskey, W., Davis, P.T., McIlhatton, D. and Haran, M. (2014), "Effect of public green space on residential property values in Belfast metropolitan area", Journal of Financial Management of Property and Construction, Vol. 19 No. 2, pp. 117-137. https://doi.org/10.1108/JFMPC-04-2013-0008
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