The valuation of urban parks using hedonic pricing has been thoroughly documented in a number of studies set in many cities. Just as the value of existing parks can be estimated by investigating the relationship between housing prices and parks, the value of future parks can also be estimated using this approach. This study recognized that a series of planning processes and land use transitions to create urban parks not only influences the perceptions of real estate buyers but also the quality of the local environment. From the apartment sales data for the Busan metropolitan region of Korea, data on 11,498 sales of apartments within walking distance to planned parks (as well as existing parks) were collected. These data were applied in an analysis comprising three categories describing different planning contexts for the parks: “comprehensive plans,” “implementation plans,” and “completed parks.” A set of explanatory variables representing housing, park, and neighborhood characteristics was selected, with additional remarks regarding the planning specifications that might influence apartment buyers’ perceptions, such as the park type and the age of a plan, as defined in the official plans of the city. The results showed that smaller park types in residential settings were preferred throughout the processes of park planning, while all types were preferred once the processes were completed. The preference in park types is likely associated with the quality of the planning guidelines as well as the size of the project and the duration of planning.
The urban park system is a crucial element of the urban fabric that enhances quality of life by promoting a healthy lifestyle, relaxation, and social engagement. Beyond the traditional value of a park space, urban park systems contribute to the larger urban objective of improving the quality of urban living. The broader view of the urban park system emphasizes the social benefits of reducing disorder and crime and strengthening ties among community members (Choi, 1999; Kuo, Sullivan, Coley, & Brunson, 1998; Kweon, Sullivan, & Wiley, 1998; Payne, Orsega-Smith, Godbey, & Roy, 1998; Sampson, Raudenbush, & Earls, 1997; Sturm & Cohen, 2014; Walker, 2004). Furthermore, vegetation, water bodies, and green spaces are valued components of the regional ecosystem and can also act as buffers against common urban nuisances, such as noise, air pollution, and congestion (Bayer, Keohane, & Timmins, 2009; Chiesura, 2004; Harnik & Welle, 2009; Kim, Park, & Kweon, 2007; Luttik, 2000). In the past few decades, a number of studies set in multiple cities have found that urban parks have a positive impact on real estate prices. These studies have used various empirical methodologies to determine the valuation of parks. Hedonic pricing allows us to capture the value of environmental amenities by estimating the marginal price included in the price of real estate. Assisted by the improved capability of dealing with spatial data and more sophisticated tools, the recent body of research has advanced the use of the hedonic price method, especially in an investigation into the proximity effect and a more detailed and diverse characterization of environmental amenities. An overview of the previous literature, with a focus on the proximity effect and the different characterizations of parks in urban settings, lays the groundwork for the valuation of urban parks in different planning contexts.