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Abstract
Most Australian capital cities require many 100,000s of additional dwellings to accommodate
demographic change and population pressures in the next two or three
decades. Urban growth will come in the form of infill, consolidation and urban expansion.
Plans to redevelop environmental amenities such as parks and open green spaces
are regularly being put forward to local councils and State governments. Maintaining
parks and reserves represents one of the largest costs to local councils. To aid in the
evaluation of some of the different propositions, we report the results of a spatial
hedonic pricing model with fixed effects for Adelaide, South Australia. The results
indicate that the private benefits of a close proximity to golf courses, green space
sporting facilities, or the coast, are in the order $0.54, $1.58, and $4.99 per metre closer
(when evaluated at the median respectively). The historic Adelaide Parklands add
$1.55 to a property’s value for each additional metre closer. We demonstrate how the
estimated model could be used to calculate how local private benefits capitalized in
property values change with changes in the configuration of a park.