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Urban Growth Boundaries and their Impact on Land Prices

Author

Listed:
  • Michael Ball

    (Henley Business School, University of Reading, England)

  • Melek Cigdem

    (Australian Housing and Urban Research Institute, RMIT University, Australia)

  • Elizabeth Taylor

    (Faculty of Architecture Building and Planning, University of Melbourne, Australia)

  • Gavin Wood

    (Australian Housing and Urban Research Institute, RMIT University, Australia)

Abstract

Undeveloped land transactions at the urban fringe of the Melbourne metropolitan area in Australia are recorded in a dataset that enables exploration of the impact of its urban growth boundary (UGB) on residential land prices. Estimation can take account of a wide range of factors, while controlling for policy anticipation effects and other potential influences on land prices. Modelling estimates indicate that land prices rose substantially inside the UGB after its enactment in 2003, but did not rise much outside of it. These results suggest that the urban growth boundary has had a significant upward effect on the trajectory of the urban region's house prices.

Suggested Citation

  • Michael Ball & Melek Cigdem & Elizabeth Taylor & Gavin Wood, 2014. "Urban Growth Boundaries and their Impact on Land Prices," Environment and Planning A, , vol. 46(12), pages 3010-3026, December.
    • Handle: RePEc:sae:envira:v:46:y:2014:i:12:p:3010-3026
    DOI: 10.1068/a130110p
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    References listed on IDEAS

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    2. Han, Wenjing & Zhang, Xiaoling & Zheng, Xian, 2020. "Land use regulation and urban land value: Evidence from China," Land Use Policy, Elsevier, vol. 92(C).
    3. Zhipeng Lai & Chengjing Chen & Jianguo Chen & Zhuo Wu & Fang Wang & Shaoying Li, 2022. "Multi-Scenario Simulation of Land-Use Change and Delineation of Urban Growth Boundaries in County Area: A Case Study of Xinxing County, Guangdong Province," Land, MDPI, vol. 11(9), pages 1-18, September.
    4. Yan Yu & Chenhe Zhang & Weilin Ma & Yaxin Xu & Xinxin Gao, 2022. "Urban Growth Boundaries Delineation under Multi-Objective Constraints from the Perspective of Humanism and Low-Carbon Concept," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    5. Tan, Ronghui & Liu, Pengcheng & Zhou, Kehao & He, Qingsong, 2022. "Evaluating the effectiveness of development-limiting boundary control policy: Spatial difference-in-difference analysis," Land Use Policy, Elsevier, vol. 120(C).
    6. Elizabeth Jean Taylor, 2016. "Urban Growth Boundaries and Betterment: Rent-Seeking by Landowners on Melbourne's Expanding Urban Fringe," Growth and Change, Wiley Blackwell, vol. 47(2), pages 259-275, June.
    7. Jiaying Zhang & Yi Chen & Xuhong Yang & Wenyi Qiao & Danyang Wang, 2022. "The Demarcation of Urban Development Boundary Based on the Maxent-CA Model: A Case Study of Wuxi in China," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    8. Kehao Zhou & Ronghui Tan, 2022. "More Than Thirty Years of Environmentally Sensitive Area Loss in Wuhan: What Lessons Have We Learned from Urban Containment Policy?," Land, MDPI, vol. 11(8), pages 1-20, August.
    9. Langer, Sebastian & Korzhenevych, Artem, 2018. "The effect of industrial and commercial land consumption on municipal tax revenue: Evidence from Bavaria," Land Use Policy, Elsevier, vol. 77(C), pages 279-287.
    10. Langer, Sebastian & Korzhenevych, Artem, 2017. "The effect of land consumption on municipal tax revenue: Evidence from Bavaria," CEPIE Working Papers 18/17, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    11. Duncan Maclennan & Anthony O’Sullivan, 2012. "Housing markets, signals and search," Journal of Property Research, Taylor & Francis Journals, vol. 29(4), pages 324-340, July.
    12. Rubina Canesi, 2022. "Urban Policy Sustainability through a Value-Added Densification Tool: The Case of the South Boston Area," Sustainability, MDPI, vol. 14(14), pages 1-12, July.
    13. Tan, Ronghui & Xu, Shuxian, 2023. "Urban growth boundary and subway development: A theoretical model for estimating their joint effect on urban land price," Land Use Policy, Elsevier, vol. 129(C).
    14. Fang Wei & Lvwang Zhao, 2022. "The Effect of Flood Risk on Residential Land Prices," Land, MDPI, vol. 11(10), pages 1-18, September.

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