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

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

*Corresponding author for this work

    Research output: Contribution to journalArticleScientificpeer-review

    6 Citations (Scopus)

    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

    Funding

    This study was part of the Research on resident-driven infill development possibilities – case study in urban areas in Finland (REPSU) project funded by the Academy of Finland (Decision No. 255473).

    Keywords

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

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