An empirical study on the relationship between walkability and property prices in densely populated urban areas : a case study in Hong Kong

Abstract

Under the promotion of the HKSAR Government, the concept of walkability has been increasingly incorporated into new developments. Not only does a walkable neighborhood encourage physical activities, but it also increases livability. Previous studies in America and other foreign countries show that Walk Scores, an indicator commonly used to measure walkability, are positively associated with the prices of property nearby. This study attempts to modify the compositions of the walk score and investigate the relationship between walkability and property price in Hong Kong. Walk Score was selected as it is a widely accepted indicator used overseas that includes various elements in walkability. To better adapt Walk Score in Hong Kong, its catchment area is shrunk to accommodate Hong Kong people’s walking habits. An additional amenity, distance to public transport, has been measured since Hong Kong people are highly dependent on vehicle transportation. Orthometric height and floor level are added as penalties to reflect the complex topography as well as the inconvenience of living on high floors. Various mapping tools from both public and private sectors, namely the Geoinfo map, Openrice map, and Google map, are used to collect data regarding the amenities. The Geographic Information System is deployed through ArcGIS. Complicated geographic information, including streets intersection density, street block length, and orthometric height, is processed and computed. After obtaining the essential data for the walk score, regression models are developed to observe the coefficient between the walk score and the property prices. Two study areas have been selected for the study, namely Wan Chai and Tseung Kwan O. Wan Chai, a non-TOD district that has a rather complex topography and various types of residential buildings. On the other hand, Tseung Kwan O is a TOD district where the residential buildings are in estate developments. It is expected that the Walk Score would be positively related to the property prices in these two study areas. Besides, the positive impact of Walk Score is suggested to be more significant in the TOD-dominated district than in the non-TOD one. Surprising results, however, have been obtained from the results; there is a positive relationship observed between Walk Scores and the property prices in Wan Chai, but a opposite situation in Tseung Kwan O. Empirical results suggest that a one-point increase in the walk scores would bring about 0.5% increase and 0.09% decrease of housing prices in Wan Chai and Tseung Kwan O respectively. The reason behind this might be: First, there are negative externalities generated by the proximity to rail stations and shopping malls. Second, most of the properties in Tseung Kwan O fall into the catchment area where the negative externalities outweigh the positive effect of walkability. Nevertheless, the Walk Score was found to be statistically significant in the regression model. Hence, it is a reliable tool for measuring walkability at the building level.