Impact of infill development on prices of existing apartments in finnish urban neighbourhoods

Hannele Ahvenniemi, Kyösti Pennanen, Antti Knuuti, Anne Arvola, Kauko Viitanen

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Popularity of infill development is increasing because of the environmental benefits and cost saving potential it provides, which relate to the possibility to use existing infrastructure and services. However, the impact of infill development on value of existing properties has not been studied to a sufficient extent. Therefore, the aim of our study is to analyse whether infill development affects the prices of existing apartments. We carried out statistical analysis based on data from seven case neighbourhoods, and prices of more than 6000 housing transactions from one decade. The results of our analysis do not support the hypothesis of infill development affecting positively existing housing prices, but neither did the study show a significant negative effect. Both amenity effect and negative externalities may provide explanations as to why property values do not change due to infill development.

Original languageEnglish
Pages (from-to)157-167
Number of pages11
JournalInternational Journal of Strategic Property Management
Volume22
Issue number3
DOIs
Publication statusPublished - 1 Jan 2018
MoE publication typeA1 Journal article-refereed

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Statistical analysis
Amenities
Property values
Environmental benefits
Negative externalities
Cost savings
Housing prices

Keywords

  • infill development
  • housing prices
  • urgan neighbourhood
  • property value
  • price development

Cite this

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abstract = "Popularity of infill development is increasing because of the environmental benefits and cost saving potential it provides, which relate to the possibility to use existing infrastructure and services. However, the impact of infill development on value of existing properties has not been studied to a sufficient extent. Therefore, the aim of our study is to analyse whether infill development affects the prices of existing apartments. We carried out statistical analysis based on data from seven case neighbourhoods, and prices of more than 6000 housing transactions from one decade. The results of our analysis do not support the hypothesis of infill development affecting positively existing housing prices, but neither did the study show a significant negative effect. Both amenity effect and negative externalities may provide explanations as to why property values do not change due to infill development.",
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Impact of infill development on prices of existing apartments in finnish urban neighbourhoods. / Ahvenniemi, Hannele; Pennanen, Kyösti; Knuuti, Antti; Arvola, Anne; Viitanen, Kauko.

In: International Journal of Strategic Property Management, Vol. 22, No. 3, 01.01.2018, p. 157-167.

Research output: Contribution to journalArticleScientificpeer-review

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