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The Impact of Landscape Design on House Prices and Values in Residential Development in Urban Areas

DOI:10.1016/j.apcbee.2014.10.059
Authors:
mohd ramzi mohd hussain at International Islamic University Malaysia
mohd ramzi mohd hussain
Izawati Tukiman at International Islamic University Malaysia
Izawati Tukiman
Ismawi Zen at Al-Madinah International University
Ismawi Zen
Fitrynadia mohd Shahli at International Islamic University Malaysia
Fitrynadia mohd Shahli
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Focusing on a world class living environment, a good quality residential area can be highlighted as an important issue in creating a sustainable living environment. However, limited green spaces within the proximity of residential properties are not supporting the landscape space and are not conducive to living space. The aim of the paper is to investigate the impact of landscape design on house prices and values in residential development particularly in urban areas. The paper employed quantitative approaches which include i) a questionnaire survey; and ii) an observation. This empirical study is based on the findings of case studies conducted in several residential areas in Klang Valley. The findings show that the residents have very clear ideas on how much green space is really important in residential areas in order to create a sustainable residential environment. Despite the absence of public actions in terms of providing information, encouraging participations in the survey and promoting awareness of those interviewed have shown considerable interest in promoting landscape design to be applied in residential development. The perceptions of the quality and quantity of landscape designs in residential areas especially in Klang Valley can be further researched for future study.
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APCBEE Procedia 10 ( 2014 ) 316 – 320
2212-6708 © 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer review under responsibility of Asia-Pacifi c Chemical, Biological & Environmental Engineering Society
doi: 10.1016/j.apcbee.2014.10.059
ScienceDirect
Available online at www.sciencedirect.com
ICESD 2014: February 19-21, Singapore
The Impact of Landscape Design on House Prices and Values in
Residential Development in Urban Areas
Mohd Ramzi Mohd Hussain, Izawati Tukiman, Ismawi Hj. Zen and Fitrynadia
Mohd Shahli
Department of Landscape Architecture, Kulliyyah of Architecture and Environmental Design, International Islamic University Malaysia
(IIUM), 53100 Jln Gombak, Kuala Lumpur, MALAYSIA
Abstract
Focusing on a world class living environment, a good quality residential area can be highlighted as an important issue in
creating a sustainable living environment. However, limited green spaces within the proximity of residential properties are
not supporting the landscape space and are not conducive to living space. The aim of the paper is to investigate the impact
of landscape design on house prices and values in residential development particularly in urban areas. The paper
employed quantitative approaches which include i) a questionnaire survey; and ii) an observation. This empirical study is
based on the findings of case studies conducted in several residential areas in Klang Valley. The findings show that the
residents have very clear ideas on how much green space is really important in residential areas in order to create a
sustainable residential environment. Despite the absence of public actions in terms of providing information, encouraging
participations in the survey and promoting awareness of those interviewed have shown considerable interest in promoting
landscape design to be applied in residential development. The perceptions of the quality and quantity of landscape
designs in residential areas especially in Klang Valley can be further researched for future study.
© 2014 Published by Elsevier B.V. Selection and/or peer review under the responsibility of Asia-Pacific
Chemical, Biological & Environmental Engineering Society
Keywords: Sustainable living environment, landscape design, house prices and values, residential development, quality of landscape
design
1. Introduction
Corresponding author. Tel.: 006-03-61964000 ext 6286; fax: 006-03-61964864
E-mail address: ramzie97@hotmail.com.
© 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer review under responsibility of Asia-Pacifi c Chemical, Biological & Environmental Engineering Society
317
Mohd Ramzi Mohd Hussain et al. / APCBEE Procedia 10 ( 2014 ) 316 – 320
Landscape, which includes topography, vegetation and associated plants and soil, water bodies, and their
spatial configuration, is one of the most visual needs of people [1]. They add that human-nature interactions
lead human beings to have contrasting preference on the surrounding landscape and environment because a
pleasing landscape can bring mental and physical benefits to people. The understanding and preference by
people on their surrounding landscape provide a challenge for policy-making and implementation in
residential property. Landscape design is an importance element to housing development since it can create
genius loci (sense of place) to the housing area. This will determine the level of comfort for the residents and
the residential areas. Good design should contribute positively to making places better for people.
2. Landscape Design as an Added Value for Residential Development
There are many factors of landscape design that can influence house value and price [2]. Luttik [3] states
that the largest increase in house prices due to environmental factors and analysis revealed the house price
varies by type of landscape that have in house. According to Kadish and Nutesil [4] the property high
structure vegetation has positive and significant coefficient to the sale price of the property of the house.
Besides that, house price and value are influenced by factor of natural sources that have in house such as open
spaces and water bodies. According to Wolf [5] yard, street trees, forest, open spaces and parks in
development growth area can add a value to the property. Niemiera [6] studies that a different type of plant
sizes; types and level of sophistication of landscape can add value to house property. In that study, design
sophistication was the factor that most added to a house’s value. Ng [7] adds that park and open space is one
of the most important of selling a point and it becomes a tool for the developer to attract prospect buyers.
Although there have been a few exceptions, houses with softscape elements are generally preferred
compared to houses without softscape elements. According to Henry [8] plants includes trees, grass and
others Softscape features may affect the price of the house. It's also supported by Niemiera [6] and Des
Rosiers et al., [9] states that a sophisticated landscape design includes varying sizes, types and color of plants
can become factors that most added to a house value and price. Niemera [6] adds that landscape design
sophistication can increase 42% value of the house rather than the size of the plant (36%) and diversity type
of plant material (22%). Thus, large softscape and hardscape expenditure on the residential development can
increase house value and will result in a higher selling price.
3. Methodology
This study employed quantitative approaches which include a questionnaire survey and observation. In
total, 1000 respondents were used as representatives for the whole population in Klang Valley. After
obtaining the target response rate, the collected data were further analyses using the Statistical Package for the
Social Science (SPSS) Version 20.0 software. The types of data used were nominal, ordinal and categorical.
These types of data and the objectives of the study determined the type of statistical analysis employed.
4. Analysis and Findings
4.1. Criteria of Landscape Design for Residential Areas
In order to identify the needs of the users in terms of landscape design, respondents were asked the type of
criteria considered to be significant for the landscape design in their residential areas. The tables present the
frequency distribution of respondents’ answers.
318 Mohd Ramzi Mohd Hussain et al. / APCBEE Procedia 10 ( 2014 ) 316 – 320
Table 1. Landscape design criteria included for residential areas
Landscape design criteria
0
1
2
3
4
5
M
a.
Comfort
1.0
1.4
3.1
9.3
32.4
52.8
4.33
b.
Feeling of safety and security
1.0
1.5
3.3
11.4
32.0
50.8
4.29
c.
Privacy
1.0
2.0
5.8
22.2
41.8
27.2
3.87
d.
Sense of belonging
1.0
1.8
4.6
17.6
43.0
32.0
4.00
e.
Space to socialize
1.1
1.9
4.2
20.3
50.7
21.8
3.87
f.
Courtyard
1.3
.8
3.8
20.5
50.7
22.9
3.92
g.
Recreation
1.5
.6
4.5
15.7
49.3
28.4
4.02
h.
Sport
1.1
1.7
6.9
16.6
46.7
27.0
3.91
i.
Cultural
1.5
1.8
7.8
25.5
44.8
18.6
3.72
j.
Community
1.3
1.5
5.1
22.2
46.5
23.4
3.86
k.
Therapeutic garden
1.5
2.9
9.9
28.8
41.0
15.9
3.58
l.
Herbs Garden
1.8
4.0
14.4
26.8
38.5
14.5
3.46
m.
Others
34.2
3.7
4.4
17.2
26.8
13.7
3.64
Total
3.88
As shown in Table 1, the highest criteria selected by respondents are comfortable (M = 4.33) and feeling of
safety (M = 4.29). The lowest criterion selected is the herb garden (M = 3.46). This result shows that the
aspect of safety and comfort are important to create a better living environment and the uses of landscape
design hopefully can provide a sense of security for users. Thus, based on the preferences on comfort and
safety, the implication of landscape design, such as fences and buffers, can create a sense of security and
safety for the residential environment. The safety and security can lead to the comfortable environment for the
user.
4.2. Preferences on Landscape Elements
In addition, the questions on the needs for landscape elements in the house compound were also asked to
the respondents. The landscape elements consist of fountains, gazebos, plants, benches, pergolas, trellis,
planter boxes, rock gardens, lawn areas and others. Table 2 shows that 69.9% (M = 3.88) of the respondents
agreed with the needs of plants, 67.7% of lawn gardens, 63.3% for benches, 49.3% for gazebos, 43.1% of
planter boxes, 42.8% for rock gardens, 40.3% for fountains, 39.1% for pergolas, 31.4% for trellis and 23.7 for
others. This shows that the needs of plants have become the highest priority for respondents for their house
compounds. The function of plants for residential areas can be identified for street plantings, buffers, shading
elements for pedestrians, creating aesthetic values that can create an identity for the residential areas and
forming a cooling environment for the surrounding neighborhood.
Table 2. Landscape elements in house compounds
Landscape elements in house compounds
0
1
2
3
4
5
M
SD
a.
Fountains
2.7
21.8
16.4
18.8
26.5
13.8
2.94
1.379
b.
Gazebos
2.9
16.4
12.1
19.3
33.2
16.1
3.21
1.328
c.
Plants
2.4
4.9
3.3
19.5
41.2
28.7
3.88
1.033
d.
Benches
2.5
7.3
6.6
20.3
44.5
18.8
3.62
1.098
e.
Pergolas
3.7
15.4
14.5
27.3
30.6
8.5
3.08
2.065
f.
Trellis
3.8
15.5
18.4
30.9
24.4
7.0
2.89
1.170
g.
Planter boxes
3.2
11.8
16.1
25.8
32.5
10.6
3.14
1.187
h.
Rock gardens
3.0
13.7
15.4
25.1
30.1
12.7
3.13
1.242
i.
Lawn a reas
3.3
5.4
5.6
18.0
41.4
26.3
3.80
1.074
j.
Others
55.4
3.8
3.0
14.1
16.4
7.3
3.46
1.106
Total
3.31
1.268
319
Mohd Ramzi Mohd Hussain et al. / APCBEE Procedia 10 ( 2014 ) 316 – 320
4.3. Landscape Design Influences the House Prices and Values
There are many factors to be considered in respondents’ decisions to buy or rent a house. The importance
of landscape design in influencing this decision is needed to be proven (Table 3).
Table 3. Results of owning a dream-house
Description
Frequency
Percentage %
a.
Landscape design influences the decision to
buy or rent a house
Missing
Yes
No
16
682
302
1.6
68.2
30.2
Total
1000
100.0
b.
Providing good landscape increases the
value of property
Missing
Yes
No
13
904
83
1.3
90.4
8.3
Total
1000
100.0
The results show that there are 68.2% of the respondents agreed that landscape design can influence their
decisions in buying or renting a house (Table 3). Meanwhile, a majority of the respondents agreed that
landscape design can increase the value of a property (90.4%). Thus, these results support that landscape
design is an important factor when making the decisions to buy or rent a house and it also increases the value
of a property. The used of various types of plants can help to solve residential problems and give an
opportunity in enhancing a quality of living for the residents (Fig.1).
Fig. 1. (a) Peltophorum pterocarpum (Yellow flame) is a big silara tree that can provide shade environment for the main avenue area; (b)
Mimusops elengi (Bunga Tanjung) can direct pedestrians’ movement; (c) Mangifera indica (Mango Tree) are planted at the front of
houses for its fruits.
Besides that, the function of landscape design such as street planting and railing act as a buffer zone and
safety barrier to segregate public and private spaces of residential areas. The importance of safety and security
become a priority for every residence in order to make their surrounding safe from any danger and harm. It
will help in increasing social values of the society.
5. Conclusion
It can be concluded that landscape design influence the house prices and values in residential development.
Most of the respondents support the importance of landscape design positively in their residential areas.
However, there are still many constraints and limitations in terms of planning and guidelines in order to utilize
this landscape design especially in house compounds. Equally, an approach to residential development which
works within the constraints and opportunities provided by the landscape will not only minimize adverse
effects but will also offer environmental, social and economic benefits. The housing built today will not only
320 Mohd Ramzi Mohd Hussain et al. / APCBEE Procedia 10 ( 2014 ) 316 – 320
help to shape the environment in the immediate future, but it will also be a legacy in determining the
environmental quality of many areas.
Acknowledgements
The authors would like to thank to the International Islamic University Malaysia for supporting this
research under the Research Acculturation Grant Scheme (RAGS) and also to the National Real Estate
Research Coordinator (NAPREC), National Institute of Valuation (INSPEN), Valuation and Property
Services Department, Ministry of Finance Malaysia.
References
[1] Zheng, B., Zhang, Y., And Chen, J. (2011). Preference to home landscape: wildness or neatness? Landscape and Urban
Planning, 99: 1-8.
[2] Berger, C. (2007). Determining market value: Reconciling the three approaches to real estate valuation for Ad Valorem Taxes.
Journal of State Taxation, 25 (4): 31.
[3] Luttik, J. (2000). The Value of Trees, Water and Open Space As Reflected By House Prices in Netherlands. Landscape and
Urban Planning. 15: 161 -167.
[4] Kadish, K., and Nutesil, N. R. (2012). Valuing Vegetation in Urban Watershed. Landscape and Urban Planning, 104: 59 – 65.
[5] Wolf, K. L. (2007). City Trees and Property Values. Arborist News, 16 (4). p. 34-36.
[6] Niemiera, A.X. (2009). The Effect of Landscape Plants on Perceived Home Value. Virginia Cooperative Extension, 426-087: 1-
3.
[7] Ng, A. (2005). Gamuda offers a vast expanse of green home buyers. The Star.
[8] Henry, M. S. (1999). Landscape Quality and the Price of Single Family Houses: Further Evidence From Home Sales in
Greenville, South Carolina. Journal of Environmental Horticulture, 17(1): 25-30.
[9] Des Rosiers, F., Theriault, M., Kestens, Y., and Villeneuve, P. (2002). Landscaping and house values: an empirical investigation.
Journal of Real Estate Research, 27(4): 371-407.
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This article is the winner of the Real Estate Valuation manuscript prize (sponsored by The Appraisal Institute) presented at the 2001 American Real Estate Society Annual Meeting. This hedonic study investigates the effect of landscaping on house values, based on a detailed field survey of 760 single-family homes sold between 1993 and 2000 on the territory of the Quebec Urban Community. Environmental information includes thirty-one landscaping attributes of both houses and their immediate environment. By and large, a positive tree cover differential between the property and its immediate neighborhood, provided it is not excessive, translates into a higher house value. Findings also suggest that the positive price impact of a good tree cover in the visible surroundings is all the more enhanced in areas with a high proportion of retired persons. Finally, a high percentage of lawn cover as well as features such as flower arrangements, rock plants, the presence of a hedge, etc. all command a substantial market premium.
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We provide general conditions under which the algebras for a coloured operad in a monoidal model category carry a Quillen model structure, and prove a Comparison Theorem to the effect that a weak equivalence between suitable such operads induces a Quillen equivalence between their categories of algebras. We construct an explicit Boardman-Vogt style cofibrant resolution for coloured operads, thereby giving a uniform approach to algebraic structures up to homotopy over coloured operads. The Comparison Theorem implies that such structures can be rectified.
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In this study, the contribution of the quality of landscaping to house prices was estimated for a sample of 218 home sales in Greenville, SC, from 1996 to 1997. The estimates were made using regressions of house price on house characteristics, location and landscape quality. The results obtained in this research were similar to an earlier study of Greenville home sales, from 1991 to 1993. For homes with the same square footage and other house characteristics, selling prices were 6% to 7% higher if landscaping quality was judged excellent rather than good. The price premium obtained by upgrading landscaping from average to good was approximately 4% to 5%.
Valuing vegetation in an urban watershed
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This study explores students’ preferences toward natural and wild versus clean and neat residential landscapes using preference survey data. Based on the rating scores of four housing landscape designs, multinomial logit models were used to explore the potential influential factors on people's preferences, especially the wildness or neatness of the home landscape. The results suggest that students in agricultural economics, horticulture, and social sciences are more inclined to choose a neat, well-kept environment around their homes. In contrast, wildlife science students prefer more natural landscapes. This study also found that senior students and students from large cities also prefer well-maintained and artificial landscapes. Also, students who are members of an environmental group, and those whose parents have a better education, are more likely to choose a more natural landscape. The results would provide additional information for planners, developers, engineers, architects and foresters in building more livable communities which are aesthetically appealing but also ecologically sound.
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An attractive environment is likely to influence house prices. Houses in attractive settings will have an added value over similar, less favourably located houses. This effect is intuitively felt, but does it always occur? Which environmental factors make a location an attractive place to live in? The present study explored the effect of different environmental factors on house prices. The research method was the hedonic pricing method, which uses statistical analysis to estimate that part of a price due to a particular attribute. Nearly 3000 house transactions, in eight towns or regions in the Netherlands, were studied to estimate the effect of environmental attributes on transaction prices. Some of the most salient results were as follows. We found the largest increases in house prices due to environmental factors (up to 28%) for houses with a garden facing water, which is connected to a sizeable lake. We were also able to demonstrate that a pleasant view can lead to a considerable increase in house price, particularly if the house overlooks water (8–10%) or open space (6–12%). In addition, the analysis revealed that house price varies by landscape type. Attractive landscape types were shown to attract a premium of 5–12% over less attractive environmental settings.
Valuing Vegetation in Urban Watershed City Trees and Property Values
  • Jan 2007
  • 59-65
  • K Kadish
  • N R Nutesil
  • K L Wolf
Kadish, K., and Nutesil, N. R. (2012). Valuing Vegetation in Urban Watershed. Landscape and Urban Planning, 104: 59 – 65. [5] Wolf, K. L. (2007). City Trees and Property Values. Arborist News, 16 (4). p. 34-36.