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Towards the Valuation of Open Spaces: A Hedonic Based Investigation for Sustainable Planning in the Dense Urban Context of Dhaka

Received: 28 August 2020     Accepted: 19 October 2020     Published: 19 November 2020
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Abstract

Within the context of the economic valuation, the presence and absence of open space has an effect on the residential property value in urban areas. Residents in a city esteemed these open spaces differently. They are keen to pay a premium for attractive views willingly. This study only assessed the amenity value of open spaces especially green parks and water bodies of two planned urban residential neighborhoods of Dhaka city in Economic terms. An empirical analysis is carried out by employing Hedonic Price Method (HPM) to analyze the impact of open space attributes on real price of residential properties. The six storied walkup and high-density apartments are typical for upper and middle-income residents in Dhaka city. Together with a set of structural, location and socio-economic variables the research use to explain residential property prices; this study focuses on three amenity or environmental variables which include the existence of views of open spaces, the distance from the residential unit to the nearest open space, and the size of that open space. The regression analysis result from the first stage hedonic estimation reveal that homebuyers are willing to pay only for scenic views and living in the closest proximity to open spaces especially green parks. In contrast results for the size of the nearest open space for houses do not show a significant relationship on nearby property values. This estimated valuation of open spaces and their amenity benefits will be useful for policy making in urban design for both developers and planners, composing new strategies for land use planning and sustainable development, open space conservation and property appraisal.

Published in American Journal of Environmental and Resource Economics (Volume 5, Issue 4)
DOI 10.11648/j.ajere.20200504.13
Page(s) 97-103
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Urban Open Space, Economic Valuation, Residential Property Price, Hedonic Price Method

References
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[4] Nilufar F. Urban life and use of public open space-Study of responsive public open spaces for supporting urban lie in Dhaka city. For urban life, specially Dhaka city: its past, present and future. Asiatic society of Bangladesh 1999; pp 14.
[5] Tyrvainen L. The Amenity Value of the Urban Forest: An Application of the Hedonic Pricing Method. Journal of Landscape and Planning 1997; vol. 37 (3), pp. 211-222.
[6] More T., Stevens. A. and Allen. T P G. Valuation of Urban Parks. Landscape and Urban Planning 1988; vol. 15, pp. 139-152.
[7] Tyrvainen L. and Miettinen A. Property Prices and Urban Forest Amenities. Journal of Environmental Economics and Management 2000; vol. 39 (2), pp. 205-223.
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[9] Anderson S T. and West S E. The Value of Open Space Proximity and Size: City versus Suburbs. Working Paper 2003; Macalester College, St. Paul, MN.
[10] Neelam C P., Donald G H. and Christopher D M. A hedonic analysis of the demand for and benefits of urban recreation parks. Land Use Policy 26 2009; pp 975–983.
[11] Tajima K. New Estimates of the Demand for Urban Green Space: Implications for Valuing the Environmental Benefits of Boston’s Big Dig Project. Journal of Urban Affairs 2003; vol. 25 (5), pp. 641-655.
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[18] Mahan B L., Polasky S. and Adams R M. Valuing Urban Wetlands: A Property Price Approach. Land Economics 2000; vol. 76 (1), pp. 100-113.
[19] DTLR. Valuing the External Benefits of Undeveloped Land: Main Document. Department for Transport. Local Government and the Regions, U.K 2003.
[20] Toufiq M S. Private Sector Housing. Pearl Publication 2012; ISBN: 978-984-33-5298-9.
[21] Hossain N., Ishtiaque Z. and Apurba. P. Making an Urban Oasis the Use of Space Syntax in Assessing Dhanmondi Lake Revitalization Project in Dhaka, Bangladesh. Proceedings of the 7th International Space Syntax Symposium, Ed Daniel Koch, Lars Marcus and Jesper Steen, Stockholm: KTH, 2009; vol 044 (4).
[22] Afroza A. Factors and Issues Related to Children Play and Their Implications on Play and Recreation Provision in Dhaka City. PhD Thesis, Loughborough University, 2010; pp. 254-261.
[23] Liebelt V.; Bartke S. and Schwarz N. Hedonic Pricing Analysis of the Influence of urban green Spaces onto residential Prices: the Case of Leipzig, Germany. European Planning Studies 2017; vol 25 (11), pp. 133-157.
[24] Wittowsky D.; Hoekveld J.; Welsch J. and Steier M. Residential housing prices: impact of housing characteristics, accessibility and neighboring apartments – a case study of Dortmund, Germany. Urban, Planning and Transport Research 2020, vol. 8 (1, pp. 44-70, ISSN: (Print) 2165-0020 (Online).
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  • APA Style

    Faria Sharmin. (2020). Towards the Valuation of Open Spaces: A Hedonic Based Investigation for Sustainable Planning in the Dense Urban Context of Dhaka. American Journal of Environmental and Resource Economics, 5(4), 97-103. https://doi.org/10.11648/j.ajere.20200504.13

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    ACS Style

    Faria Sharmin. Towards the Valuation of Open Spaces: A Hedonic Based Investigation for Sustainable Planning in the Dense Urban Context of Dhaka. Am. J. Environ. Resour. Econ. 2020, 5(4), 97-103. doi: 10.11648/j.ajere.20200504.13

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    AMA Style

    Faria Sharmin. Towards the Valuation of Open Spaces: A Hedonic Based Investigation for Sustainable Planning in the Dense Urban Context of Dhaka. Am J Environ Resour Econ. 2020;5(4):97-103. doi: 10.11648/j.ajere.20200504.13

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  • @article{10.11648/j.ajere.20200504.13,
      author = {Faria Sharmin},
      title = {Towards the Valuation of Open Spaces: A Hedonic Based Investigation for Sustainable Planning in the Dense Urban Context of Dhaka},
      journal = {American Journal of Environmental and Resource Economics},
      volume = {5},
      number = {4},
      pages = {97-103},
      doi = {10.11648/j.ajere.20200504.13},
      url = {https://doi.org/10.11648/j.ajere.20200504.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20200504.13},
      abstract = {Within the context of the economic valuation, the presence and absence of open space has an effect on the residential property value in urban areas. Residents in a city esteemed these open spaces differently. They are keen to pay a premium for attractive views willingly. This study only assessed the amenity value of open spaces especially green parks and water bodies of two planned urban residential neighborhoods of Dhaka city in Economic terms. An empirical analysis is carried out by employing Hedonic Price Method (HPM) to analyze the impact of open space attributes on real price of residential properties. The six storied walkup and high-density apartments are typical for upper and middle-income residents in Dhaka city. Together with a set of structural, location and socio-economic variables the research use to explain residential property prices; this study focuses on three amenity or environmental variables which include the existence of views of open spaces, the distance from the residential unit to the nearest open space, and the size of that open space. The regression analysis result from the first stage hedonic estimation reveal that homebuyers are willing to pay only for scenic views and living in the closest proximity to open spaces especially green parks. In contrast results for the size of the nearest open space for houses do not show a significant relationship on nearby property values. This estimated valuation of open spaces and their amenity benefits will be useful for policy making in urban design for both developers and planners, composing new strategies for land use planning and sustainable development, open space conservation and property appraisal.},
     year = {2020}
    }
    

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    AU  - Faria Sharmin
    Y1  - 2020/11/19
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Author Information
  • Department of Architecture, Stamford University Bangladesh, Dhaka, Bangladesh

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