PROPERTY & GREENSPACE - AUSTRALIA APRIL 2021 - CORELOGIC
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Property & Greenspace Australia April 2021
About
CoreLogic
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Author: Anna Russell, Senior Professional, Consulting & Risk Management
corelogic.com.au
2
What value does the
property market put
on greenspace?
Greenspace has a known value in improving mental and physical health as well as
perceived wellbeing.
Other benefits include increased levels of resident exercise and A large proportion of the prior studies investigating price
potential for reduction in crime. International studies have premiums on greenspace have been conducted in the Northern
suggested that the positive effects of greenspace may translate Hemisphere, with only one substantial study (Lockwood &
to a price premium for residential property, with both proximity Tracy, 1995) conducted in Australia. The Australian property
to public greenspace and the presence of private greenspace market, and the manner in which the Australian public relate to
having the potential to encourage a price premium in certain and value property, is distinctly different to other markets; as a
markets. result the value ascribed to greenspace may also be different.
Whilst property ownership is proportionally low in many
This paper explores the benefits of greenspace and the European nations, and multiple property ownership is
overseas evidence for a price premium in ‘green’ locations, and uncommon, Australia has a relatively high rate of home
then utilises a blend of CoreLogic and public data to conduct an ownership, and property as an asset class for wealth building is
initial investigation into whether the Australian market also a popular option amongst investors. Further, the parameters of
considers greenspace worthy of a price premium. the Australian mortgage market do not allow for non-recourse
default in the same way as the US. This means Australian
The term ‘greenspace’ refers to land that is partly or completely
homeowners are more likely to ‘stick it out’ when their
covered with grass, trees, shrubs or other vegetation.1 In the
ownership position is not ideal. We see examples of this in how
context of cities, greenspace includes parks, community
Australians responded to the 2020 Black Summer fires and also
gardens, cemeteries, school yards, playgrounds and vacant lots.
tropical cyclones such as Cyclone Debbie in 2017.
Greenspace may be public and available for all members of the
community to benefit from, or it may be privately owned such
as large yards or gardens. In academic studies, greenspace is
often measured using a measure called “Normalised Difference
Vegetation Index” which is derived from satellite imagery.
1
https://www3.epa.gov/region1/eco/uep/openspace.html
3
Access to nature makes
us healthier, happier
and more resilient
There is a large body of literature across both health science The study found that living within 300m of public green space
and urban planning disciplines evidencing health and wellbeing had a significant effect on perceived wellbeing of residents in a
benefits from exposure to nature. A particularly significant densely populated urban setting. It also found that perceived
example is Engemann et al’s report published in 2019 , 2
wellbeing went up significantly as the area of greenspace
examining the impact of greenspace exposure on mental available increased.3
health. The study used satellite imagery to determine the
Greenspace also has the potential to improve a range of
Normalised Difference Vegetation Index (NDVI) within a 210m x
physical conditions, most specifically those associated with the
210m square around the residence of 943,027 Danish children
western lifestyle – obesity, hypertension and blood sugar
from birth to the age of 10 years. Across this large cohort the
disorders, which frequently co-exist as metabolic syndrome. A
study found that the impact of greenspace on a person’s
longitudinal study of 6,000 British adults from 1997 to 2013
likelihood to express a psychiatric disorder was comparable to
found that long term exposure to greenspace appears to play
other factors such as family history and parental age, higher
an important role in preventing metabolic syndrome as well as
than urbanisation and slightly lower than parents’
reducing or preventing the individual components of the
socioeconomic status. Mood disorders, depression, anxiety
disorder such as high blood lipid concentration or
and somatic disorders were most closely linked to NDVI levels
hypertension4. Given the burden these illnesses place on the
indicating that permeation of high-quality greenspace into
public health system in western countries, plus the inherent
urban areas might counter many of the woes thought to be due
utility of parks for play and socialisation, provision of
to population density and general features of urban living.
greenspace seems a particularly low cost and effective way to
These findings are supported by a UK study conducted by reduce the burden of public health costs and deliver a healthier
Newcastle University, University of Warwick and University of happier urban population.
Sheffield, and published in Applied Geography Aug. 2019.
2
E
ngemann, E., Pedersen, C., Arge, L., Tsirogiannis, C., Mortensen, P. & Svenning, J., Residential green space in childhood is associated with lower risk of psychiatric disorders
from adolescence into adulthood, Proceedings of the National Academy of Sciences Mar 2019, 116 (11) 5188-5193; DOI: 10.1073/pnas.1807504116
3
Houlden, V., de Albuquerque, J.P., Weich, S. & Jarvis, S. ‘A spatial analysis of proximate greenspace and mental wellbeing in London’, Applied Geography,Volume 109,2019.
Sourced at https://www.sciencedirect.com/science/article/pii/S0143622818312384
4
https://www.salud.carlosslim.org/english2/living-near-green-spaces-is-associated-with-a-lower-risk-of-met abolic-syndrome/#:~:text=NOTICIAS-,Living%20near%20
green%20spaces%20is%20associated%20with%20a%20lower%20risk,conditions%2C%20including%20obesity%20and%20hypertension.
4
Proximity to nature
positively impacts
urban housing
prices – in some
settings
A meta-analysis of 37 hedonic pricing studies across Europe,
North America and Australasia found that urban nature, such
as parks and forests, has positive impacts on house value in
the areas surrounding it.5 The authors then further
interrogated this relationship through a detailed case study in
the Dutch city of Utrecht, finding that the presence of urban
nature such as reserves, green corridors and play-spaces drove
increases in local property values of up to 20% compared to
areas in which urban nature was absent. The analysis
concluded that both organically situated and man-made urban
nature settings can offer both human and price benefits, and
that this may apply across a wide range of locations and
settings.
Closer to home, the 2013 study ‘Valuing Victoria’s Parks’6
showed a 5-7% increase in home value for properties
immediately adjacent to parks in Melbourne, with similar data
also found for Perth by McIntosh et al. in 2014.7 Lockwood &
Tracy’s 1995 analysis hints at potential price effects in Sydney,
although it deals with a very specific scenario of proximity to
Centennial Park.8
5
B rander, L. & Koetse, M., The value of urban open space: Meta-analyses of
contingent valuation and hedonic pricing results. Journal of Environmental
Management, 16 July 2011.
6
Parks Victoria (2015). Valuing Victoria’s parks, Parks Victoria, Melbourne. Sourced
at https://soe.environment.gov.au/theme/built-environment/topic/2016/
livability-urban-amenity.
7
McIntosh J, Trubka R & Newman P (2014). Can value capture work in a car-
dependent city? Willingness to pay for transit access in Perth, Western Australia.
Transportation Research Part A: Policy and Practice 67:320–339.
8
Lockwood & Tracy, 1995. In Brander, L.M. & Koetse, M.J. The value of urban open
space : Meta-analyses of contingent valuation and hedonic pricing results. Journal
of Environmental Management, 16 July 2011.
5
Case Study – Sydney
and Surrounds:
Association between proximal greenspace
and house prices
Our case study evaluates the extent to which the presence of Other property features known to influence price such as land
greenspace in general and more intensely vegetated size, distance to employment, build quality and number of
greenspace forested with trees more than 3m in height co-vary bedrooms are likely to interact with and mediate the influence
with residential property prices, based on transactions across of greenspace. Our intention here is to determine if there are
Greater Sydney in 2019. We define these two greenspace types indications of a price effect, in order to establish the case for a
as ‘greenspace’ and ‘tree cover’ for the purpose of this analysis. more detailed nationwide study prepared in the coming
months.
As a representation of these greenspace measures, we
leveraged a pre-aggregated mesh block level summary of NDVI Preliminary analysis of data indicated mesh block pricing data
data prepared by the NSW Dept. of Planning, Industry & was sparse in some locations due to small geographic area and
Environment 9. The dataset leverages multi-spectral remote low housing turnover. This created some noise in the data
sensing data from satellite imagery, providing coverage in making trends harder to extract. A decision was therefore
square metres of trees > 3m in height, shrubs, open green made to utilise SA2, with a mean area of 6km2 instead of the
space/ grassed area and total ‘greenspace’ as well as mesh more granular mesh block with areas as small as 400m2. Whilst
block area, also in square metres. this does lose some of the precision in terms of maximum
distance to greenspace, the volume of sales transactions was
To provide the price inputs, residential property listing and sale sufficiently larger to improve stability of results.
data for the 2019 calendar year was extracted from CoreLogic’s
proprietary database at a property level. We elected to use the We analysed the interactions between price and greenspace
2019 calendar year as our initial sample as the 2020 property for Sydney overall and for the seven planning districts within
market had highly irregular characteristics due to COVID-19. Sydney as defined by the NSW Dept. of Planning, Industry and
Sales volume, contract price, time on market, price premium Environment. Each district of Sydney contains a different mix of
and price growth metrics were generated at mesh block and private greenspace and public greenspace, as shown in the
Statistical Area 2 (SA2) level for analysis. We defined ‘price table below. Public greenspace and public tree cover levels are
premium’ as a sale price in excess of the property’s listing price. exceptionally high across the North. The more intensely
populated Central and Eastern areas of the city have low levels
This case study is necessarily brief and intentionally does not of both private and public greenspace, and we expect that this
attempt to establish a causal effect of greenspace on price. may influence the value placed on greenspace due to scarcity in
these districts.
% of District area classed in each greenspace category
Western Eastern Central Other
North South Illawarra
City City City South
Private Greenspace 32.8% 21.1% 17.1% 11.6% 10.0% 0.0% 0.0%
Private Tree Cover 10.2% 7.2% 6.4% 8.0% 5.3% 0.0% 0.0%
Public Greenspace 19.4% 16.0% 14.4% 47.3% 53.1% 0.0% 12.6%
Public Tree Cover 11.9% 7.9% 9.1% 36.6% 35.9% 0.0% 7.8%
SA2s 74 62 60 52 52 1 1
6 9
https://data.gov.au/dataset/ds-nsw-96d5f9a6-af2c-45f9-8966-3741dfc34f02/details?q=vegetation%20cover
Geographical bounds of ‘Districts’ used by NSW Dept. of Planning, Industry & Environment
District
Central City
Eastern City
Illawarra
North
Other - South
South
Western City
ude (generated). Color shows details about District. Details are shown for Sa2 Name16.
Using the SA2 level dataset we computed the strength of association between a subset of greenspace metrics and the selected
pricing metrics using Pearson Correlation, with ANOVA F test used to test the significance of each relationship. The variables were
then plotted and a linear regression line of best fit calculated against each of the price variables.
Correlation matrix for greenspace and price metrics across Sydney Basin sample
7
Correlation coefficients and indicators of significance for greenspace and price metrics
% public % public tree % private % private tree
greenspace at SA2 cover at SA2 greenspace at SA2 cover at SA2
Average unit sale price 0.150 0.193 -0.028 0.317
at SA2 p=0.012 p=0.001 p=0.645 P< 0.001
Average house sale 0.076 0.107 -0.013 0.326
price at SA2 p=0.201 p=0.069 p=0.825 p
Relationship between SA2 % of private
greenspace and house sale price (2019)
for Sydney Eastern Suburbs
Greenspoace SA2 relationships (2)
Avg. total MB area
467,895
6000K
2,000,000
4,000,000
5500K 6,000,000
8,000,000
5000K 10,000,000
11,877,539
4500K House Sale Vol 2019
1 840
4000K
Avg House Sale Price 2019
3500K
3000K
Greenspoace SA2 relationships (2)
2500K Avg. total MB area
467,895
6000K
2000K 2,000,000
4,000,000
5500K 6,000,000
1500K
8,000,000
5000K 10,000,000
1000K 11,877,539
4500K House Sale Vol 2019
500K 1 840
4000K 0K
Avg House Sale Price 2019
0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20
3500K
% Private Tree Cover
Sum of % Private Tree Cover vs. sum of Avg House Sale Price 2019. Color shows sum of House Sale Vol 2019. Size shows
3000K
average of total MB area. Details are shown for Sa2 Name16. The data is filtered on District, which keeps Eastern City.
The view is filtered on Sa2 Name16, which excludes Dural - Kenthurst - Wisemans Ferry.
2500K
2000K
1500K
1000K
500K
0K
0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20
% Private Tree Cover
Sum of % Private Tree Cover vs. sum of Avg House Sale Price 2019. Color shows sum of House Sale Vol 2019. Size shows
Where can I find a
average of total MB area. Details are shown for Sa2 Name16. The data is filtered on District, which keeps Eastern City.
The view is filtered on Sa2 Name16, which excludes Dural - Kenthurst - Wisemans Ferry.
‘green’ place to live?
For property hunters wanting to seek out the benefits of living
alongside greenspace there are many options across Sydney.
The scale and quality of greenspace, both public and private,
differs widely across the metropolitan area. The Northern
Beaches and Sutherland shire and the lower Blue Mountains
offer the largest number of well-greened localities, although
with the exception of lower Blue Mountains, this amenity does
come at a price.
9
Highest % of private tree cover (top 10)
Avg. House Sale Avg. Unit Sale Avg. % Private
SA2 SA4
Price 2019 Price 2019 Tree Cover
Avalon - Palm Beach Sydney - Northern Beaches $2,657,696 $744,868 27.90%
Newport - Bilgola Sydney - Northern Beaches $1,938,216 $946,017 25.90%
Holsworthy - Wattle
Sydney - South West $815,484 $623,262 25.10%
Grove
Lindfield - Roseville Sydney - North Sydney and Hornsby $2,612,073 $1,073,009 24.40%
Sydney - Baulkham Hills and
Castle Hill - South $1,463,534 $753,136 24.30%
Hawkesbury
Pymble Sydney - North Sydney and Hornsby $2,216,293 $1,015,880 23.70%
Gymea - Grays Point Sydney - Sutherland $1,184,108 $808,798 23.40%
Chatswood (West) -
Sydney - North Sydney and Hornsby $1,961,881 $849,677 23.10%
Lane Cove North
Lilli Pilli - Port
Sydney - Sutherland $2,159,055 $1,365,000 22.60%
Hacking - Dolans Bay
Wahroonga (East) -
Sydney - North Sydney and Hornsby $2,194,839 $1,101,957 22.10%
Warrawee
Top 10 SA2s for % private tree cover
Top 10 private tree cover
Avg. % Private Tree Cov..
Avalon - Palm Beach
0.22104 0.27909
Newport - Bilgola
Wahroonga (East) - Warrawee
Castle Hill - South
Pymble
Lindfield - Roseville
Chatswood (West) - Lane Cove North
Holsworthy - Wattle Grove
Gymea - Grays Point
Lilli Pilli - Port Hacking - Dolans Bay
© 2021 Mapbox © OpenStreetMap
Map based on Longitude (generated) and Latitude (generated). Color shows average of % Private Tree Cover . The marks are labeled by Sa2 Name16. Details are shown for Sa2 Name16. The data is filtered on Top 10 Private tree cover, which keeps 10 members.
10Highest % of public tree cover (top 10)
Avg. House Sale Avg. Unit Sale Avg. % Public
SA2 SA4
Price 2019 Price 2019 Tree Cover
Berowra - Brooklyn -
Sydney - North Sydney and Hornsby $1,007,297 $738,500 68.50%
Cowan
Heathcote - Waterfall Sydney - Sutherland $912,937 $662,500 65.10%
Terrey Hills - Duffys
Sydney - Northern Beaches $2,185,206 $585,000 61.30%
Forest
Asquith - Mount Colah Sydney - North Sydney and Hornsby $1,065,767 $660,995 54.30%
Woronora Heights Sydney - Sutherland $1,095,702 $976,250 50.70%
Turramurra Sydney - North Sydney and Hornsby $1,924,818 $993,229 50.30%
Menai - Lucas Heights -
Sydney - Sutherland $998,368 $738,072 46.70%
Woronora
Helensburgh Illawarra $941,500 $726,368 46.20%
Blaxland - Warrimoo - Sydney - Outer West and Blue
$767,564 $524,875 42.80%
Lapstone Mountains
Wahroonga (East) -
Sydney - North Sydney and Hornsby $2,194,839 $1,101,957 22.10%
Warrawee
Top 10 SA2s for % public tree cover
Top 10 public tree cover
Avg. % Public Tree Cover
Berowra - Brooklyn - Cowan
0.4234 0.6845
Asquith - Mount Colah
Bayview - Elanora Heights
Terrey Hills - Duffys Forest
Turramurra
Blaxland - Warrimoo - Lapstone
Menai - Lucas Heights - Woronora
Heathcote - Waterfall
Helensburgh
© 2021 Mapbox © OpenStreetMap
Map based on Longitude (generated) and Latitude (generated). Color shows average of % Public Tree Cover. The marks are labeled by Sa2 Name16. Details are shown for Sa2 Name16. The data is filtered on Top 10 public tree cover, which keeps 10 members.
11Highest % of private greenspace (top 10)
Avg. House Sale Avg. Unit Sale Avg. % Private
SA2 SA4
Price 2019 Price 2019 Greenspace
Cobbitty - Leppington Sydney - South West $762,823 $641,230 68.30%
Austral - Greendale Sydney - South West $1,456,156 60.00%
Horsley Park - Kemps
Sydney - South West $2,820,800 53.10%
Creek
Mulgoa - Luddenham - Sydney - Outer West and Blue
$1,418,762 $435,500 50.10%
Orchard Hills Mountains
Rosemeadow - Glen
Sydney - Outer South West $618,186 $356,760 48.50%
Alpine
Camden - Ellis Lane Sydney - Outer South West $854,407 $365,250 47.00%
The Oaks - Oakdale Sydney - Outer South West $941,984 46.40%
Sydney - Outer West and Blue
Richmond - Clarendon $644,514 $464,102 45.70%
Mountains
Claymore - Eagle Vale -
Sydney - Outer South West $598,922 $455,807 44.10%
Raby
Sydney - Baulkham Hills and
Pitt Town - McGraths Hill $1,047,458 $296,916 42.00%
Hawkesbury
0 private green space
Top 10 SA2s for % private greenspace
Avg. Private green map..
0.4205 0.6825
Pitt Town - McGraths Hill
Richmond - Clarendon
Horsley Park - Kemps Creek
Mulgoa - Luddenham - Orchard Hills
Austral - Greendale
Cobbitty - Leppington
Claymore - Eagle Vale - Raby
The Oaks - Oakdale
Camden - Ellis Lane
Rosemeadow - Glen Alpine
apbox © OpenStreetMap
d on Longitude (generated) and Latitude (generated). Color shows average of Private green map top 10. The marks are labeled by Sa2 Name16. Details are shown for Sa2 Name16. The data is filtered on SA2 Top 10 % Private Greenspace, which keeps 10 memb
12Highest % of public greenspace (top 10)
Avg. House Sale Avg. Unit Sale Avg. % Public
SA2 SA4
Price 2019 Price 2019 Greenspace
Heathcote - Waterfall Sydney - Sutherland $912,937 $662,500 80.50%
Berowra - Brooklyn - Cowan Sydney - North Sydney and Hornsby $1,007,297 $738,500 78.10%
Terrey Hills - Duffys Forest Sydney - Northern Beaches $2,185,206 $585,000 75.00%
Asquith - Mount Colah Sydney - North Sydney and Hornsby $1,065,767 $660,995 66.30%
Menai - Lucas Heights -
Sydney - Sutherland $998,368 $738,072 64.10%
Woronora
Bayview - Elanora Heights Sydney - Northern Beaches $1,871,173 $1,718,333 57.80%
Woronora Heights Sydney - Sutherland $1,095,702 $976,250 57.40%
Turramurra Sydney - North Sydney and Hornsby $1,924,818 $993,229 57.00%
Helensburgh Illawarra $941,500 $726,368 56.20%
Manly Vale - Allambie
en space Sydney - Northern Beaches $1,795,332 $772,182 52.70%
Heights
Top 10 SA2s for % public greenspace
Avg. % Public Greenspa..
0.5270 0.8048
Berowra - Brooklyn - Cowan
Asquith - Mount Colah
Terrey Hills - Duffys Forest
Turramurra Bayview - Elanora Heights
Manly Vale - Allambie Heights
Menai - Lucas Heights - Woronora
Heathcote - Waterfall
Helensburgh
p
erated) and Latitude (generated). Color shows average of % Public Greenspace. The marks are labeled by Sa2 Name16. Details are shown for Sa2 Name16. The data is filtered on Top 10 Public greenspace, which keeps 10 members.
13Conclusion
We can see some tentative indicators of value placed on A more detailed hedonic pricing analysis looking at the wider
greenspace in the Sydney metropolitan market but it does not Australian market is planned, so as to fully draw out the
appear to be a significant factor in pricing at this point in time. relationship between greenspace and property prices.
This may in part come down to the fact that our city has far
greater amounts of greenspace than many of the cities As we mark Earth Day 2021, following two years of
analysed in Europe – for example, Sydney has 46% public extraordinary and extreme climate events, we hope this
greenspace whilst Amsterdam has 13% and London 33%. In analysis prompts some readers to reflect on the potential
cities where accessible greenspace is scarce, it is possible that benefits we gain in living alongside nature and caring for our
this scarcity has led residents and authorities to begin to place greenspace, in the cities and beyond.
more value on it.
We also note that the Sydney market is not necessarily an
accurate reflection of other Australian or New Zealand
residential markets, and that a wider geographic analysis may
present different results.
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