Space matters: The importance of amenity in planning metropolitan growth

Parvin Mahmoudi, Darla Hatton MacDonald, Neville D. Crossman, David M. Summers, John van der Hoek

Research output: Contribution to journalArticlepeer-review

23 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)38-59
Number of pages22
JournalAustralian Journal of Agricultural and Resource Economics
Issue number1
Early online date21 Nov 2012
Publication statusPublished - Jan 2013
Externally publishedYes


  • Fixed effects
  • Hedonic pricing
  • Open space
  • Spatial lag
  • Water management and policy
  • Water restrictions


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