Green Is Good: Prices Higher in Sydney’s Leafy Suburbs
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Green Is Good: Prices Higher in Sydney’s Leafy Suburbs

New data suggests a correlation between greenspace and housing prices.

By Terry Christodoulou
Fri, Apr 23, 2021 2:30pmGrey Clock 2 min

Sometimes the grass is, in fact, greener.

The value of parks, trees and backyards is bolstering property prices in a number of “green suburbs” in Sydney according to data from Corelogic.

It comes as the post-COVID-19 world shifts towards a renewed focus on healthy, urban living with many cities nationally increasing parkland, cycle lanes and more.

Greenspace refers to public or private land that is completely or partly covered with grass, trees, shrubs or other vegetation. In Sydney, that looks like parks, community gardens, cemeteries, school yards, playground and vacant lots.

New findings from Corelogic suggest that there has been a direct increase in housing value premiums in suburbs across Sydney where the average of green or open space is higher.

Highest proportion of public greenspace

Average house sale price 2019 Average unit sale price 2019 Average % public greenspace
Heathcote – Waterfall $912,937 $622,500 80.50%
Berowra – Brooklyn – Cowan $1,007,297 $738,500 78.10%
Terrey Hills – Duffys Forest $2,185,206 $585,000 75.00%
Asquith – mount Colah $1,065,767 $660,995 66.30%
Menai – Lucas Heights – Woronora $998,368 $738,072 64.10%
Bayview – Elanora Heights $1,871,173 $1,718,333 57.80%
Woronora Heights $1,095,702 $976,250 57.40%
Turramurra $1,924,818 $993,229 57.00%
Helensburgh $941,500 $726,368 56.20%
Manly Vale – Allamie Heights $1,795,322 $722,182 52.70%

^Source: Corelogic

“Our case study has revealed a positive correlation between housing values and greenspace,” Corelogic head of research Tim Lawless said.

“As Australia’s climate change strategies and domestic policy evolve over the years ahead, the market’s readiness to value ‘greenness’ as a tangible property feature may strengthen.”

“In areas where greenspace was scarce, such as the Eastern Suburbs and Inner City, private greenspace had a far stronger relationship with price,” Lawless added.

However, when compared to European cities, the correlation between greenspace and housing prices was low due to Sydney’s larger volume of greenspace.

For example, Sydney currently has 46% public greenspace while Amsterdam has 13% and London 33%.



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Home prices declined at a faster pace in May in major cities, while other data show a mixed picture for the world’s second-largest economy

By REBECCA FENG
Tue, Jun 18, 2024 3 min

China’s broken housing market isn’t responding to some of the country’s boldest stimulus measures to date—at least not yet.

The Chinese government has been stepping up support for housing and other industries in recent months as it tries to revitalize an economy that has  continued to disappoint  since the early days of the pandemic.

But fresh data for May showed that businesses and consumers remain cautious. Home prices continue to fall at an accelerating rate, and fixed-asset investment and industrial production, while growing, lost some momentum.

“China’s May economic data suggest that policymakers have a lot to do to sustain the fragile recovery,” Yao Wei, chief China economist at Société Générale, wrote in a client note on Monday.

The worst pain is in the property sector, which has been struggling to deal with oversupply and weak buyer sentiment since 2021, when a multiyear  housing boom ended . The market still doesn’t appear to have found a floor, even after Beijing rolled out its most aggressive stimulus measures so far  in mid-May  in hopes of restoring confidence.

In major cities, new-home prices fell 4.3% in May compared with a year earlier, worse than a   3.5% decline in April, according to data released Monday by China’s National Bureau of Statistics. Prices in China’s secondhand home market tumbled 7.5%, compared with a 6.8% drop in April.

Home sales by value tumbled 30.5% in the first five months of this year compared with the same months last year.

“This data was certainly on the disappointing side and may ring some alarm bells, as May’s policy support package has not yet translated to a slower decline of housing prices, let alone a stabilisation,” said Lynn Song, chief China economist at ING.

Economists had also been hoping to see a wider recovery this month after Beijing started  rolling out  a planned issuance of 1 trillion yuan, the equivalent of $138 billion, in ultra-long sovereign bonds in May. The funds are designed to help pay for infrastructure and property projects backed by the authorities. Investors  gobbled up  the first batch of these bonds.

Monday’s bundle of economic data, however, underlined how the country still isn’t firing on all cylinders.

Retail sales, a key metric of consumer spending, rose 3.7% in May from a year earlier, compared with 2.3% in April, according to the National Bureau of Statistics. While the trend is heading in the right direction, it is still a relatively subdued level of growth, and below what most economists believe is needed to kick-start a major revival in consumer spending.

The expansion in industrial production—5.6% in May compared with a year earlier—was down from April’s 6.7% increase. Fixed-asset investment growth, of which 40% came from property and infrastructure sectors, also decelerated, to 3.5% year-over-year growth in May from 3.6% in April.

Key to the sluggish economic activity data in May—and China’s outlook going forward—is the crisis in the property market, which has proven hard for policymakers to address.

The property rescue package in May included letting local governments buy up unsold homes, removing minimum interest rates on mortgages, and reducing payments for potential home buyers. It also included as its centerpiece a $41 billion so-called re-lending program launched by the People’s Bank of China, which would provide funding to Chinese banks to support home purchases by state-owned firms.

The hope was that by stepping in as a buyer of last resort for millions of properties, the government would manage to mop up unsold housing inventory and persuade wary home buyers to re-enter the market. In turn, Chinese consumers, who have  most of their wealth  tied up in real estate, would feel more confident about spending again, thereby lifting the overall economy.

But the size of the re-lending program wasn’t big enough to convince home buyers, said Larry Hu , chief China economist at Macquarie Group. “Meanwhile, their income outlook also stays weak given the current economic condition,” he said.

For the property market to bottom out and reach a new equilibrium, mortgage rates, which stand at around 3-4% in China, need to be as low as rental yields, which are currently below 2% in major cities, said Zhaopeng Xing, a senior China strategist at ANZ. He said that a large mortgage rate cut will need to happen eventually.

The other key part of China’s push to revive growth revolves around the manufacturing sector, with leaders  funnelling more investment  into factories to boost output and reduce the country’s reliance on foreign suppliers of key technologies.

The result has been a surge in production. But with domestic consumption not strong enough to absorb all those goods, many factories have been forced to cut prices and seek out more overseas buyers.

Data released earlier this month showed that  Chinese exports rose  faster in May than the month before.

However, the export push is  butting into resistance  as governments around the world worry about the impact of cheap Chinese competition on domestic jobs and industries. The European Union last week said it would  impose new import tariffs  on Chinese electric vehicles, describing China’s auto industry as heavily subsidised by the government, to the point where other countries’ automakers can’t fairly compete.

The U.S.  has also hit  Chinese cars and some other products with hefty duties, while countries including Brazil, India and Turkey have opened antidumping investigations into Chinese steel, chemicals and other goods.

Beijing says such moves are protectionist and that its industries compete fairly with global rivals.