New research in Sydney reveals that strategically placed street trees can increase property values by up to 1% based on their distance from buildings.
A recent study conducted by the University of Technology Sydney has highlighted the influence of street trees on property values in various suburbs within the city. It was found that having street trees can enhance property values by up to 1%, particularly when these trees are situated at an optimal distance from homes, ideally between 10 to 20 metres. This suggests that potential homebuyers might be willing to pay an additional $30,000 for a property on a street that features well-placed trees.
The research analyzed tree canopy coverage alongside property sales data from 31 suburbs within the City of Sydney from 2021 to 2024. The lead author of the study, Song Shi, emphasized the significance of tree placement, noting that trees too close to buildings may negatively impact property values, leading to a potential decrease of 3%. This nuanced understanding of how urban greenery interacts with real estate markets is essential in guiding future urban planning and development.
Given the median price of properties surveyed at approximately $2.6 million and the presence of 50,000 street trees, the findings could influence both buyer preferences and municipal policies on urban forestry. By optimizing the placement and selection of trees in residential areas, city planners could enhance not only the aesthetic appeal of neighborhoods but also their economic viability, potentially leading to increased investments in more green spaces.
