Abstract
Trees provide a variety of benefits to urban residents that are implicitly captured in the value of residential properties. We apply a spatial hedonic model to estimate the value of urban trees in 23 suburbs of Perth Metropolitan Area in Western Australia. Results show that a broad-leaved tree on the street verge increases the median property price by about AU$16,889, suggesting a positive neighbourhood externality of broad-leaved trees. However, neither broad-leaved trees on the property or on neighbouring properties nor palm trees irrespective of the locations contributed significantly to sale price. Our result has potential implications on planting and maintaining broad-leaved trees on street verges for neighbourhood development and urban planning to generate public and private benefits of street trees.
Highlights
- Effect of urban tree on property value differs depending on tree type and location.
- A broad-leaved tree on street verge increases property value by AU$16,889.
- Presence of trees on the property does not affect property value.
- Findings can be used for developing urban tree management policies.
