The Effect of Green Areas on Housing Prices in Selected Neighbourhoods in

THE EFFECT OF GREEN AREAS ON HOUSING PRICES IN SELECTED NEIGHBOURHOODS IN KLANG VALLEY

Associate Professor Dr. M. Zainora Asmawi
Assistant Professor Dr. Norzailawati Mohd Noor
Dr. Choong Weng Wai
Mohd Faisal Omar

International Islamic University Malaysia (IIUM)

ABSTRACT

This research addresses how the provision of open space can influence house prices. Global literature suggests that open space holds significant value in relation to house prices, with key factors including cleanliness and good maintenance. From a planning perspective, strategic location is essential in open space planning.

This study is a perceptual analysis based on the opinions of 200 homeowners in four selected neighbourhoods: Taman Melawati, Bandar Baru Sangi, Subang Jaya, and Shah Alam. The key research question examines whether a relationship exists between open space and house prices locally, as well as the pattern and intensity of this relationship.

The research aims to study and examine the relationship between open space and house prices in these areas in terms of its pattern and strength. To obtain reliable data, this study applied mixed methods, including literature reviews, structured close-ended questionnaires, GIS analysis, and site observations. The analysis considers house prices (both transacted and offered prices) in relation to the current housing market and the perceptions of homeowners regarding the importance of open space.

Findings indicate that management aspects (cleanliness and maintenance) are key micro factors influencing homeowners’ property purchase decisions. This demonstrates a positive correlation between open space and house prices, aligning with previous literature. However, regression analysis results show a moderate strength (R² between 0.15 and 0.28). Consequently, the rate of house price change is relatively small, differing slightly from secondary data on house prices in these areas.

Overall, this research has achieved its aims, addressed the research questions, and fulfilled its objectives.

Keywords: Open space, house price