Recent research has proved that home buyers have the will to pay 3% more for flats and homes located in greener neighborhoods. The presence of greener environment can add a lot of value to public house apartments such that individuals may be willing to pay more in order to live in such an environment. Research conducted by Mr. Richard Belcher who works at the Future cities laboratories and his counterpart assistant professor Ryan Chisholm who works at the Department of Biological Sciences in the University of Singapore have proved that greener neighborhoods attract more real estate’s customers.
Park Colonial Near to Green Neighbourhoods
Based on the selling prices of 15,962 apartments registered in the Singapore housing and development board, houses that had a significant greener space covering an area of about 1600m registered higher resale prices. Moreover, 3% of public houses resale value which amounted to $11200 came from the availability of greener environment which amounted to a total of $179 million for all the public houses sold in the region for 13 months.
Green Neighbourhood Properties Command More Prices
The increase of the value of houses in greener neighborhoods was due to well managed vegetation in the region such as park connectors, public parks, residential areas surrounded by vegetation and well- managed street trees. However, apartments that were located near primary or secondary forests, freshwater marshes, mangrove forests and other high conservation vegetation areas, had a varied effect on their prices. Home buyers seemed to value high conservation vegetation areas only where there is little artificially managed vegetation in their area of residence.
Undervalued Properties Near to Park Colonial with Green Neighbourhoods
Finally, the value of apartments in greener neighborhoods was found to be undervalued since many homebuyers did not know the benefits that a greener environment contributes to the ecosystem. Research by Belcher has indeed proved that living in a green neighborhood has quite a number of advantages that many homebuyers haven’t realized yet. Some of the advantages of greenery around apartments and homes is that it can help reduce air and surface temperature through providing shade and reducing evapotranspiration and therefore reducing the costs of air conditioning in residential areas. More research has also indicated that new towns should be established far away from conservation areas and should also continue to provide quality managed conservations in order to create a peaceful and relaxing environment for the residents of the town. In return, this action will help protect regions with huge conservations and also maximize buyer’s utility. Therefore, this research shows that greener neighborhoods attracts more home and apartment buyers due to the calming environment that surround such areas.