Landscape and Urban Planning 78 (2006) 422–434 Impacts of urban environmental elements on residential housing prices in Guangzhou (China) C.Y. Jim ∗ , Wendy Y. Chen Department of Geography, The University of Hong Kong, Pokfulam Road, Hong Kong Received 11 September 2005; received in revised form 23 December 2005; accepted 23 December 2005 Available online 20 March 2006 Abstract The amenity value provided by urban green spaces, water bodies and good environmental quality is difficult to assess and incorporate into urban planning and development. Developers and governments in China hitherto have seldom objectively factored these attributes into property pricing and associated decisions. The hedonic pricing method offers an appropriate approach to gauge such external benefits which contribute to real-estate transaction prices. This study explored the impacts of key environmental elements with a bearing on residential housing value in Guangzhou, including window orientation, green-space view, floor height, proximity to wooded areas and water bodies, and exposure to traffic noise. Four large private housing estates composed of multi-storied blocks with similar design and price bracket, catering to the mass property market, were sampled. Transaction price data and structural attributes of 652 dwelling units were acquired directly from developers. Data on environmental attributes were collected in the field. Two functional hedonic pricing method models, linear and semi-log, were constructed. The semi-log model offered comparatively stronger explanatory power and more reliable estimation. High floor on the multi-storey tenement blocks contributed implicitly 9.2% to the selling price. View of green spaces and proximity to water bodies raised housing price, contributing notably at 7.1% and 13.2%, respectively. Windows with a southern orientation with or without complementary eastern or northern views added 1% to the price. Proximity to nearby wooded area without public access was not significant, expressing the pragmatic mindset in the hedonic behavior. Exposure to traffic noise did not influence willingness-to-pay, implying tolerance of the chronic environmental nuisance in the compact city. The study demonstrates that hedonic pricing method could be applied in the Chinese context with an increasingly expanding and privatized property market. It could inform the decisions of policy makers and property developers concerning land selling and buying, land conversion, property development, urban nature conservation, and design of ecological green-space networks. © 2006 Elsevier B.V. All rights reserved. Keywords: Hedonic pricing method; Housing market; Property valuation; Urban green space; Urban natural area; Environmental benefits; Amenity value; Compact city; Guangzhou; China 1. Introduction Urban green spaces, water bodies and good environments provide amenities and services that contribute fundamentally to the quality of urban life (Shafer et al., 2000; Van Herzele and Wiedemann, 2003; Chiesura, 2004). Due to their non- commodity and unpriced nature, and largely intangible benefits, their contribution is usually difficult to assess and quantify. Their importance to the well-being of cities and citizens is often neglected in mainstream urban planning and policy mak- ing related to development (More et al., 1988; Luttik, 2000; ∗ Corresponding author. Tel.: + 852 2859 7020; fax: +852 2559 8994. E-mail address: hragjcy@hkucc.hku.hk (C.Y. Jim). Tyrv¨ ainen and Miettinen, 2000; Tajima, 2003; McConnell and Walls, 2005). In recent years, increasing concern about urban green space and environmental quality has grown in tandem with rapid urbanization. Natural areas located in and near resi- dential areas in developing cities, closely related to the amenity and health of residents, are of particular concern due to their vulnerability to damage and usurpation. To make informed policies and decisions about green space and environmental improvement, assessment of their benefits and values is essential (Tyrv¨ ainen, 1997; Luttik, 2000; Tajima, 2003; McConnell and Walls, 2005; Jim and Chen, 2006). Vari- ous approaches have been proposed and tested, amongst which the hedonic pricing method has been widely applied in west- ern countries to estimate the value of nature associated with settlements. For instance, the impacts of green spaces situated 0169-2046/$ – see front matter © 2006 Elsevier B.V. All rights reserved. doi:10.1016/j.landurbplan.2005.12.003