The Impact Of Brownfields On Residential Property Values

Brownfields are properties that may have hazardous substances,pollutants or contaminants.With the rapid development of China's economy and the adjustment of industrial structure,many pollution enterprises which located in central cities are moved out to the suburbs,and some contaminated lands(also called brownfields sites)are left.Nowadays,there are many brownfield sites exist in China and the number is still increasing.These brownfield sites not only have harmful to the environment,but also threat the economic development and the social health,they are often associated with depressed property values.So the brownfield sites will bring negative effect on the environment of the community and residence closed to it.While,when the brownfield was redeveloped,the negative effect will decrease or diminish,but sometimes,the stigma of brownfield still has negative effect on the value of real estate.As early as the 1970 s,foreign experts began to study the negative effect of landfills,gas stations,nuclear power plants and pollution sites on social economy,and many great results are concluded.In China,although there are many brownfield sites,there has been relatively little research done to estimate the negative effects.In this paper,1424 second-hand housing data from three blocks of Wuhan around the brownfield are collected and the HPM model is built to analysis the negative effect of brownfield on the real estate.The results show that brownfield have a negative effect on the price of housing price,and the degree of influence decreases with the distance increases.For details,housing prices decrease 19.5% if the house is in the radius of1 km from the brownfield.The housing prices decrease 10.5% if the house is in the radius of 1km to 2km.The housing prices decrease 1.4% if the house is away from the brownfield in the radius of 2km to 3km.When the house is away from the brownfield more than 3km,the housing prices have basically not effect.