Report Finds Proximity of Street Trees to Homes Affects Property Values in Sydney

The City of Sydney local government area (LGA) spans 26 square kilometers and has a population of about 211,000, according to the 2021 Census. It accounts for 0.21 percent of Greater Sydney's total area. The council is planting more trees to reduce urban heating, cool buildings, and improve air quality, contributing to efforts to make the city more liveable and resilient.

A peer-reviewed report published in the Cities urban planning journal examined the relationship between street-side trees and property prices in the LGA. Researchers analyzed 1,568 property sales between January 2021 and August 2024, with an average sale price of $2,613,000. They cross-referenced these with council mapping of more than 48,000 street-side trees.

The study controlled for factors including number of bedrooms, bathrooms, car parking options, land size, and proximity to transport and schools. The average property lot size in the LGA is 176 square meters, with an average distance from a home's center to its boundary of about 8 meters.

Findings indicate that a single tree on public land within 10 meters of a home's center correlates with a 2.69 percent decrease in value, equivalent to $70,289 based on the average price. A tree between 10 and 20 meters away correlates with a 1.16 percent increase, or up to $30,310. Only 129 of the studied properties had trees within 10 meters.

The report provides no data on whether this trend applies to the 33 other LGAs in Greater Sydney or to other capital cities, regions, or rural areas.

Capital city councils, including those in Sydney's CBD, have committed to increasing overall tree canopy coverage over coming decades. This follows forecasts from the Climate Council that days above 35 degrees Celsius will double by 2050. The CSIRO predicts increased intensity of hot days, along with higher likelihood and longer periods of drought.

Suburbs like Paddington feature London plane trees and weeping figs shading heritage terrace homes. Nearby Centennial Park includes over 15,000 trees such as Moreton Bay figs and paperbarks.

Song Shi, associate professor of property economics at the University of Technology Sydney and a study author, stated that the findings offer insight into residents' preferences regarding tree placement.

“This is a piece of evidence to show if you plant a tree in the right location, people like it," Dr Shi said.”

The report underscores considerations for urban planning to expand green coverage while accounting for potential effects on property values and existing infrastructure.