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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
Volume 5, Issue 4, December 2020, Pages: 97-103
Received: Aug. 28, 2020; Accepted: Oct. 19, 2020; Published: Nov. 19, 2020
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Faria Sharmin, Department of Architecture, Stamford University Bangladesh, Dhaka, Bangladesh
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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.
Urban Open Space, Economic Valuation, Residential Property Price, Hedonic Price Method
To cite this article
Faria Sharmin, 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. Vol. 5, No. 4, 2020, pp. 97-103. doi: 10.11648/j.ajere.20200504.13
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