This study examines the impact of urban waterway conditions on property market prices. In general, similar revealed preference studies typically focus on identifying the value associated with changes in attributes such as riparian vegetation or water quality. Using an index that classifies waterways based on the vegetation and channel conditions, we analyse both attributes. Our spatial hedonic property price model findings indicate that buyers are willing to pay premiums ranging from 2.7% to 8.5%, depending on vegetation and channel conditions. However, when the proximity to the waterway is accounted for, we found that properties adjacent to the highest-ranked vegetation and channel conditions attract a higher premium of 12.8%. Overall, the implicit marginal effects for the distance–condition interaction variables indicate that for lower-ranked waterway conditions, there is a relative aversion to being adjacent to waterways. The results suggest that there are significant gains to be realised from removing concrete-lined channels and replacing them with stones for banks, or re-creating unmodified channels, even if there is only limited scope for increasing vegetation.