The Green Effect Redux
Cha-Ly Koh’s 2017 book with the tantalising title of The Secret Atlas of Greater KL has a section “The Green Effect” with an accompanying histogram. Based on a single year (2015) of property transaction price data for Greater KL, she found homes within 500m from a patch of green space commanded a price premium of 3% over those further away. Rental rates, though, showed no price premium over homes that were further away.
I have discovered a recent (2019) study published in the UK that covers more than 15 years of property price transactions, sourced from a leading UK real estate platform, Zoopla, that looks at price premiums UK home buyers paid for properties near a green space or parks.
This UK Office of National Statistics study examined over one million property price transactions between 2009 and 2016 nationwide. The take-home message was houses and apartments very near to green spaces like parks commanded a premium of up to 2.5%. The bigger the green area or park, the higher the price premium. So for parks of 40 acres and above, the biggest price premium on average is 2.5% for properties less than 50m, falling to 1.5% for properties between 50m to 100m away.
Note: The UK study found lower price premiums for properties near greenery or parks compared to Secret Atlas’ 3% price premium.
The scope of Secret Atlas in comparison was much more modest. It only looked at property price transactions for a single year (2015) for Greater KL, a single city, the selected cut off points of 500m and 1000m were further away, and nothing was said about the size of the greenery or park.
There was another notable finding from the UK study, that was missing in The Secret Atlas.
Yes, property buyers value being near to parks and green spaces, obviously because they can use them for leisure activities like dog walking, sport and exercise. But having any view of green space raises property prices in the UK even more. In 2016, having a view of greenery or a park boosted UK property prices by an extra 1.8%.
Source: UK Office of Statistics 2019 study covering property price transactions between 2009 to 2016
Perhaps we might also glean the same detailed information about price premiums due to proximity effects and the views over greenery and parks from the more limited datasets used in the 2015 study for Secret Atlas. I don't know for sure. Ms Koh's company Urban Metry plans to hold webinars about the methodology used in Secret Atlas. Perhaps some answers might be found then.
Assume Malaysians and British homebuyers think alike in paying price premiums for properties with views of parks and greenery and are nearby, say 100m (approximately 300 feet) away. (I prefer to use a shorter distance cut off point than Secret Atlas)
I wonder if KLCC property prices for apartments that have views of KLCC Park-a 50 acre urban park -and are ALSO within 100m away, MIGHT, ceteris paribus, show price premiums of 4-5% or more, assuming the proximity effects are additive, over apartments that are further away and have no view of greenery.
Picture Credit Sadie Teper, Unsplash
I propose to name as “SUPER KLCC Condominiums” a selective group of 5* KLCC condominiums that have a Trifecta of factors :
Views of KLCC Park or Petronas Twin Towers or KL Tower
less than 100m from KLCC Park
less than 250m from a top 10 KL shopping centre or mall
assuming property price premiums due to proximity effects to parks and malls bundled up with views of greenery or a national icon like the PTT will be additive.
A second group of 5* KLCC condominiums that do NOT meet the requirement of less than 100m from the KLCC Park or 4* KLCC Condominiums that meet all the Trifecta requirements I propose to call PREMIUM KLCC Condominiums. If I have inadvertently left out any KLCC condominiums that meet the Trifecta requirements, please let me know using the Contact Form.
To access EdgeProp Analytics’s write-ups on individual SUPER or PREMIUM KLCC Condominium, just double click the underlined name of the condominium. This will bring up the EdgeProp Analytics’ URL of the condominium where you will find :
a succinct summary of the condominium’s history and features (FH or LH, number of units/tower blocks, age, developer, price transactions -High/Low, sourced from the PropSocial portal
a scatter chart of property price transactions in PSF plotted against time (hint: if you hover your mouse over each dot, it shows the PSF and date)
a polynomial trendline with interpolated historic and projected property prices in PSF ,
a list of recent property price transactions,
a Profitability Analysis,
a location map,
a snapshot of the median price PSF and average price in RM and much more.
RC's List of SUPER & PREMIUM KLCC condominiums:
ONEKL (5*) SUPER KLCC CONDOMINIUM
Marc Residence (5*) SUPER KLCC CONDOMINIUM
Kirana Residence (5*) read what 360 KLCC has to say about Kirana Residence here. Website here SUPER KLCC CONDOMINIUM
Sky Suites - (5*) more than 100m
Vortex Suites -(4*) more than 100m
Fraser's Place (4*) more than 100m
SOHO Suites (4*) -more than 100m
Idaman Residence (4*)
3 Kia Peng (5*) SUPER KLCC CONDOMINIUM
The RuMa (5*) SUPER KLCC CONDOMINIUM
Sri Kia Peng (4*)
Desa Kudalari (5”) -more than 100m away
8 Kia Peng (5*) SUPER KLCC CONDOMINIUM
Ampersand (5*) - more than 100m
The Linc (5*) SUPER KLCC CONDOMINIUM
The Binjai on the Park (5*) Read what 360 KLCC has to say on The Binjai here. Website by the developer here. SUPER KLCC CONDOMINIUM
Stonor Park (5*) SUPER KLCC CONDOMINIUM
Four Seasons (5*) SUPER KLCC CONDOMINIUM
The Troika (5*) SUPER KLCC CONDOMINIUM
Park Seven (5*) SUPER KLCC CONDOMINIUM
Suria Stonor (5*) SUPER KLCC CONDOMINIUM
Stonor 3 (5*) SUPER KLCC CONDOMINIUM
Le Nouvel(5*) SUPER KLCC CONDOMINIUM
K Residences(5*) SUPER KLCC CONDOMINIUM
The Pearl (5*)- more than 100m
Hampshire Park (4*)
Hampshire Place (4*) - more than 100m
Hampshire Residences (4*) - more than 100m
The Panorama (4*) - more than 100m
Corinthian (4*)
The Avare (5*) - more than 100m
The Oval (5*) - more than 100m
Dua Residency (5*) -more than 100m
Aria Luxury Residence (5*) - more than 100m
Star Residences (5*) - more than 100m
D’Mayang (4*) - more than 100m
Mayang Court (4*) - more than 100m
8 Conlay (5*) - more than 100m
Copyright Cha-Ly Koh
