DYNAMIC EFFECT OF SPORTS PARKS ON HOUSING PRICES: EVIDENCE FROM HANGZHOU ASIAN GAMES PARK

Abstract

The construction of sports parks often involves significant investment and extended development timelines, making it crucial to evaluate their economic impacts for informed policymaking and strategic urban planning. While research on the externalities of urban parks has grown, the specific economic effects of sports parks remain underexplored. This study examines the impact of the Hangzhou Asian Games Park on housing prices using 31,329 transaction records from 2018 to 2023. Employing a hedonic pricing model and a difference-in-differences approach, we find that housing prices increase by 1.6% for every 1 km reduction in distance to the park. Spatial heterogeneity is observable, as the effect diminishes with increasing distance. Temporally, the park’s planning announcement triggered a 0.7% increase in price-distance elasticity, compared to a 0.2% increase after its opening. These findings suggest that the anticipatory market response was stronger than the realized benefits after the park’s completion. This study quantifies the spatial and temporal dynamics of the economic value of sports parks, providing valuable insights for urban planning, public policy, and investment strategies.