Friday, January 10, 2020

Value of playgrounds relative to green spaces: Matching evidence from property prices in Australia

We examine the effect on house prices of the presence of a small playground relative to an empty green space using a matching approach combined with hedonic regression analysis. Using a data set of 33,521 property sales in urban Australia, we match properties near small playgrounds to similar properties near two empty, open green spaces which are candidates for playground construction. We control for property characteristics and distance to a wide range of urban amenities and other open spaces. We find that the presence of a playground within 300 metres adds about AU$20,000 (4.6 per cent) to the average property price. The price effect of a playground is larger for houses than apartments and falls with distance from the playground.
A Melbourne Natural Playground Named Australia’s Best Playground
• We assess the impact on property prices of the presence of a small playground.
• We combine hedonic regression with a matching approach.
• A small playground adds five per cent to the price of properties within 300 meters
• Playgrounds add more to house prices than non-house property prices.
• The price impact of playgrounds falls as distance to the playground increases.

by Robert Breunig 1 Syed Hasan 2 KymWhiteoak 3
1. Crawford School of Public Policy, Australian National University, Canberra, ACT 0200, Australia
2. School of Economics and Finance, Massey University, Palmerston North, New Zealand
3. RM Consulting Group Suite 1, 357 Camberwell Road, Camberwell, VIC 3124, Australia
Landscape and Urban Planning via Elsevier Science Direct
Volume 190; October, 2019; 103608

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