Green paradise or Concrete Castles: Apartment buyer perceptions & green infrastructure
2023 (English)Report (Other (popular science, discussion, etc.))
Abstract [en]
Incorporating green spaces, green roofs and walls, trees, and grassy areas in cities can significantly improve the climate. It has been shown that green areas absorb more intense rainfall, facilitating the management of large water volumes and protecting against flooding (Alexander et al., 2019). In densely developed urban areas, green roofs, facades, and walls, as well as a general enhancement of urban biodiversity, contribute to improved air quality and the creation of spaces for social interaction and relaxation (Derkzen et al., 2017).
The overarching aim of this study is to explore if, and how, green infrastructure, which is often understood as greenness surrounding residential development, influences potential buyers’ appraisal of the development and, if that has an effect on the buyers’ willingness to pay price. In this study we have specifically focused on following:
• the potential buyers’ interest in an apartment for sale in a development, and;
• the initial willingness to pay (WTP) for such an apartment, before entering the bidding process,
• aiming to isolate the effect which the level of greenness may have on the buyers’ perception, and the direct and indirect effect on the interest and the price buyer is willing to pay.
To answer these research questions, we developed two hypothetical structural causal models. We have identified factors which effect the decision-making process and the price the customer is willingness to pay for a dwelling. We have stated several hypotheses, which we then tested, to increase our understanding of customer preferences regarding green infrastructure in a residential development. In order to test the model and the hypothesis, we designed a survey with an embedded experiment. We collected data in Sweden and in Australia from 2020 to 2022. This report presents results and summaries findings from the study
Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2023. , p. 54
Series
TRITA-ABE-RPT ; 2320
Keywords [en]
green infrastructure, sustainability, cities, residential, willingness to pay
Keywords [sv]
grön infrastruktur, hållbarhet, städer, bostäder, betalningsvilja
National Category
Social Sciences Economics Landscape Architecture
Research subject
Real Estate and Construction Management
Identifiers
URN: urn:nbn:se:kth:diva-339460OAI: oai:DiVA.org:kth-339460DiVA, id: diva2:1811246
Projects
Familjen Kamprads stiftelse; project number 20180145
Note
QC 20231114
2023-11-112023-11-112025-02-21Bibliographically approved