Green Is Good: Prices Higher in Sydney’s Leafy Suburbs
New data suggests a correlation between greenspace and housing prices.
2 min
Sometimes the grass is, in fact, greener.
The value of parks, trees and backyards is bolstering property prices in a number of “green suburbs” in Sydney according to data from Corelogic.
It comes as the post-COVID-19 world shifts towards a renewed focus on healthy, urban living with many cities nationally increasing parkland, cycle lanes and more.
Greenspace refers to public or private land that is completely or partly covered with grass, trees, shrubs or other vegetation. In Sydney, that looks like parks, community gardens, cemeteries, school yards, playground and vacant lots.
New findings from Corelogic suggest that there has been a direct increase in housing value premiums in suburbs across Sydney where the average of green or open space is higher.
Highest proportion of public greenspace
| Average house sale price 2019 | Average unit sale price 2019 | Average % public greenspace | |
| Heathcote – Waterfall | $912,937 | $622,500 | 80.50% |
| Berowra – Brooklyn – Cowan | $1,007,297 | $738,500 | 78.10% |
| Terrey Hills – Duffys Forest | $2,185,206 | $585,000 | 75.00% |
| Asquith – mount Colah | $1,065,767 | $660,995 | 66.30% |
| Menai – Lucas Heights – Woronora | $998,368 | $738,072 | 64.10% |
| Bayview – Elanora Heights | $1,871,173 | $1,718,333 | 57.80% |
| Woronora Heights | $1,095,702 | $976,250 | 57.40% |
| Turramurra | $1,924,818 | $993,229 | 57.00% |
| Helensburgh | $941,500 | $726,368 | 56.20% |
| Manly Vale – Allamie Heights | $1,795,322 | $722,182 | 52.70% |
^Source: Corelogic
“Our case study has revealed a positive correlation between housing values and greenspace,” Corelogic head of research Tim Lawless said.
“As Australia’s climate change strategies and domestic policy evolve over the years ahead, the market’s readiness to value ‘greenness’ as a tangible property feature may strengthen.”
“In areas where greenspace was scarce, such as the Eastern Suburbs and Inner City, private greenspace had a far stronger relationship with price,” Lawless added.
However, when compared to European cities, the correlation between greenspace and housing prices was low due to Sydney’s larger volume of greenspace.
For example, Sydney currently has 46% public greenspace while Amsterdam has 13% and London 33%.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Philip Lowe’s comments come amid property industry concerns about pressures on mortgage holders and rising rents
2 min
Leaders in Australia’s property industry are calling on the RBA to hit the pause button on further interest rate rises following yesterday’s announcement to raise the cash rate to 4.1 percent.
CEO of the REINSW, Tim McKibbin, said it was time to let the 12 interest rate rises since May last year take effect.
“The REINSW would like to see the RBA hit pause and allow the 12 rate rises to date work their way through the economy. Property prices have rebounded because of supply and demand. I think that will continue with the rate rise,” said Mr McKibbin.
The Real Estate Institute of Australia today released its Housing Affordability Report for the March 2023 quarter which showed that in NSW, the proportion of family income required to meet the average loan repayments has risen to 55 percent, up from 44.5 percent a year ago.
Chief economist at Ray White, Nerida Conisbee, said while this latest increase would probably not push Australia into a recession, it had major implications for the housing market and the needs of ordinary Australians.
“As more countries head into recession, at this point, it does look like the RBA’s “narrow path” will get us through while taming inflation,” she said.
“In the meantime however, it is creating a headache for renters, buyers and new housing supply that is going to take many years to resolve.
“And every interest rate rise is extending that pain.”
In a speech to guests at Morgan Stanley’s Australia Summit released today, Governor Philip Lowe addressed the RBA board’s ‘narrow path’ approach, navigating continued economic growth while pushing inflation from its current level of 6.8 percent down to a more acceptable level of 2 to 3 percent.
“It is still possible to navigate this path and our ambition is to do so,” Mr Lowe said. “But it is a narrow path and likely to be a bumpy one, with risks on both sides.”
However, he said the alternative is persistent high inflation, which would do the national economy more damage in the longer term.
“If inflation stays high for too long, it will become ingrained in people’s expectations and high inflation will then be self-perpetuating,” he said. “As the historical experiences shows, the inevitable result of this would be even higher interest rates and, at some point, a larger increase in unemployment to get rid of the ingrained inflation.
“The Board’s priority is to do what it can to avoid this.”
While acknowledging that another rate rise would adversely affect many households, Mr Lowe said it was unavoidable if inflation was to be tamed.
“It is certainly true that if the Board had not lifted interest rates as it has done, some households would have avoided, for a short period, the financial pressures that come with higher mortgage rates,” he said.
“But this short-term gain would have been at a much higher medium-term cost. If we had not tightened monetary policy, the cost of living would be higher for longer. This would hurt all Australians and the functioning of our economy and would ultimately require even higher interest rates to bring inflation back down.
“So, as difficult as it is, the rise in interest rates is necessary to bring inflation back to target in a reasonable timeframe.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
