The Wall Street Journal - 20.03.2020

THE WALL STREET JOURNAL. Friday, March 20, 2020 |M5

T

urns out the color of

money really is green.

An international

study by Knight Frank,

published this week, analyzes the

hefty premium buyers are willing

to pay for a home adjacent to, or

offering views of, a landmark

park.

The most expensive place to

look for a home with a view is

London. Knight Frank’s research

team found that homes with

views of Hyde or Regent’s park

are 75% more expensive than

property just a few streets back.

Living adjacent to either of these

open spaces will add 33.4% to the

average value of a property, the

report shows.

Flora Harley, research associate

at Knight Frank who helped com-

pile the report, said homes right

nexttoaparkhavealowerpre-

mium than homes with a park

view because not all park-adjacent

SPREADSHEET

properties have a view, as some

may be facing the street.

Proximity to Central Park in

New York City adds a major price

premium to property: 62.8% for a

view and 29% for a park-adjacent

property.

Of the five global cities in-

cluded in the study, the British

capital and New York City have

the lowest amount of public open

space: some 33% of London and

27% of New York.

In Sydney, Australia, the premi-

ums to live by the Royal Botanic

Garden or Hyde Park, both in the

central business district of the

city, are more modest: 24% for a

park view and 21.1% to be adja-

cent to the park. Meanwhile, al-

most half (46%) of the city is pub-

lic open space.

In the final two locations in-

cluded in the study, Hong Kong

and Singapore, homes beside or

overlooking Victoria Park and the

Singapore Botanic Gardens cost

barely more than other local

properties.

In Singapore, for example, a

view of its famous tropical garden

commands a 5% premium. Living

adjacent adds 2% to average

prices.

Victoria Garrett, Knight Frank’s

head of residential for the APAC

region, is based in Singapore and

said the reason is that the entire

island is green. “Singapore is a

garden city. Greenery is not

scarce, even in the central busi-

ness district,” she said.

Raw data never tells a full

story, of course.

One reason for the large premi-

ums in London and New York are

the size of the properties sur-

rounding the parks studied.

In London, homes around the

park are, on average, 179% larger

than the average for the neighbor-

hood.

Hyde Park, and particularly Re-

gent’s Park, are overlooked by

large townhouses and apartment

buildings built mostly in the 17th

and 18th centuries as city man-

sions for aristocrats and courtiers.

Their rarity, and landmark archi-

tecture, attracts its own premium.

The same phenomenon is at

work in New York where homes

around Central Park are 67% big-

ger than those in the rest of Man-

hattan.

In Singapore and Sydney,

homes around the parks are 20%

BYRUTHBLOOMFIELD

The Price of a Country Feeling

and 17% larger than average, re-

spectively, helping to explain their

lower premiums.

Cathy Taub, associate broker at

Sotheby’s International Realty

who specializes in real estate on

Central Park West, says the pre-

miums for park-adjacent homes in

New York City may be influenced

by other factors than just the

view and unit size.

“On Central Park West, build-

ings are of a much higher stan-

dard and pedigree, and more de-

sirable, than buildings that are

even right around the corner,” she

said. “Most of the inventory is

prewar and they were originally

built as very large rental apart-

ments to appeal to high-net-worth

individuals. Now they have

changed to co-ops, but they still

attract high-net-worth buyers be-

cause they are very large apart-

ments, classical in design, and

they are all doorman buildings.”

Another issue is the floor on

which an apartment is located.

“The second floor will not

trade nearly as high as an apart-

ment that clears the trees so you

can see the city skyline,” said Ms.

Taub. “If someone is paying a pre-

mium, it is for the eighth floor

upward.”

In London, Jonny Wedgbury,

senior negotiator at Nicolas Van

Patrick real-estate agents, sells

homes in the ultraprime Knights-

bridge neighborhood on the south

side of Hyde Park. He agrees that

a home that is above the park’s

tree line will attract the highest

prices.

“Tobeintheheartofacity

andhaveeverythingafewmin-

utes away but to have that open

aspect really lifts the spirits,” he

said. “It is very calming. It feels

like you are in the country, but

Harrods [department store] is

only three minutes away.” LIST SOTHEBY’S INTERNATIONAL REALTY, SINGAPORE (2); ALMACANTAR (LONDON RENDERING); CBRE (SYDNEY); SOTHEBY’S INTERNATIONAL REALTY (NEW YORK)

PrimePriceComparisonsfor

Park-FocusedProperties

Changes in premiums over time; prime prices are the

top 5% sales in the city’s most upscale locations

London

NewYork

City

Hong

Kong Singapore Sydney

12-month

change -2.6% -3.6% 2.9% 1.2% 3.7%

5-year

change -12.5% 0.5% 9.6% 18% 49.5%

Avg. price

per sq. ft. $3,061 2,881 4,356 2,619 1,845

Note: New York City data is as of Nov. 2019, all others are through Dec. 2019.

Currency converted to Dec. 31, 2019 U.S. dollars

Sources: Knight Frank Research; Douglas Elliman, StreetEasy

ValueAddedforHomesThatBoast

GreenConnection

Price-premium variables for selected cities

CITY

Park-view

premium

Park-adjacency

premium

%ofcitythatis

publicparks,

gardens

London 75% 33.4% 33%

Hong Kong 4.8% 4.5% 40%

Singapore 5% 2% 47%

New York 62.8% 29% 27%

Sydney 24% 21.1% 46%

Global 34% 18%

Source: Knight Frank Research; Douglas Elliman

SYDNEY

$9.1 million

The 1,916-square-foot, three-bed-

room, three-bathroom apartment

has views of Sydney Harbour on

one side and the Royal Botanic Gar-

den on the other. The apartment is

in the new Opera Residences build-

ing. Agent: CBRE

NEW YORK

$9.95 million

A 3,700-square-foot midtown apart-

ment with four bedrooms is in an

Art Deco condo building near Carn-

egie Hall. It is sold with approved

plans for a full renovation to suit a

new owner’s needs. Agent: So-

theby’s International Realty

SINGAPORE

$4.4 million

This 1,690-square-foot, three-bed-

room penthouse is in Cluny Park

Residences in the Bukit Timah

neighborhood. It has views of the

Singapore Botanic Gardens and a

rooftop pool. Agent: Sotheby’s In-

ternational Realty

LONDON

From $3.2 million

The Bryanston, Hyde Park has 54

units in an 18-story building by Uru-

guayan architect Rafael Vinoly.

Shared amenities include a spa,

movie theater and a pool. It is set

to be completed this year. Agent:

Knight Frank and Wetherell

INTERNATIONAL LISTINGS FOR BIG-CITY HOMES NEAR PARKS

ParkorNoPark

Average size difference of park

properties compared with homes

located farther away

CITY Averagedifference

London 179%

Singapore 20

New York 67

Sydney 17

Global 71

Note: Hong Kong data not available

Source: Knight Frank Research; Douglas Elliman

This Singapore penthouse in Cluny

Park Residences overlooking the

Botanic Gardens asks $4.4 million.

Real estate agents affiliated with The Corcoran Group are independent contractor sales associates and are not employees of The Corcoran Group. Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker located at 660 Madison

Ave, NY, NY 10065. All listing phone numbers indicate listing agent direct line unless otherwise noted. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Corcoran makes no warranty or

representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice.

Scott B Stewart

Licensed Associate RE Broker

Licensed as Scott Stewart

o 212.875.2884 | m 917.806.4068

[email protected]

32 MOUNT MORRIS

$7,950,000 | 5 Beds | 6 Baths | 7,000 Sq. Ft.

A spectacular manse with 6 floors & rooms of stellar proportions light and detail.

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33 MOUNT MORRIS PARK

$3,950,000 | 5 Beds | 7 Baths | $7,000 Sq Ft.

An astonishing opportunity to create ones Harlem Forever Home.

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223 WEST 125TH STREET

$1,895,000 | 2 Beds | 2.5 Baths | 1,890 Sq. Ft.

Downtown IS uptown in this stunning Harlem Pre War condominium

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Harlem is Hot

MANSION

NY