In a recent post I graphically represented the land values throughout the Auckland city centre as a function of their “frontage value” which generated some surprising results. The exercise revealed a place premium associated with real estate located in the lower Queen Street valley. Besides being physically central, is it also highly accessible with small blocks, a concentration of intersections, a multiplicity of transport options and a topography that naturally puts people in close contact with each other, essentially, the structural ingredients of good urbanism.
The low value around the motorway was something I expected since the street grid is clipped and local places are no longer connected to surrounding areas and thus have a reduced place value. Of course the physical conditions of noise and traffic also repel human activities and further contribute to lowered land values.
Most interesting to me is how severely property values drop off away from Queen Street, in particular on the western side of the city. To use the convenient collar metaphor, it looks as if the city is being strangled and oxygen is only getting to one part of the brain. Part of this is likely caused by the motorway itself, but it is compounded by the local facilitation of the motorway– essentially the mini-motorways– of Hobson, Nelson, and Fanshawe Streets (to name but a few).
Here’s a cross section look at the land values I mapped previously. Note the extremity of the values drop-off on the western side, from a high of 12 down to 4, only over three or four short city blocks. Also, note the consistent drop-off in values on the eastern side. It makes sense that if the centre maintains a real estate premium, than values would fall away further from it. It would be useful to compare this property value “fade” with other cities to determine if this is typical of a city centre this size. What if the motorway wasn’t strangling the city, would land values be higher further away from the centre?
There have been many ideas proposed to span the motorway via caps and bridges. Besides being excessively costly they would have to be implemented in numerous places to be effective. Also, on the perimeter we are dealing with reduced land values, mostly due to the motorway, but also since by definition edges can’t be centres, and the centre is where the highest land values are.
Below is the same diagram with a line drawn on the eastern side of the city centre to track the property value decline. This line was mirrored onto the western side. The green area, in my opinion, is the greatest opportunity. While no doubt some of the drop-off is due to the physical topography, far more is a function of an anti-urban street network and neglected public realm. The great news is that the City Centre Masterplan has proposed to remedy this situation by two-waying Hobson and Nelson Street, and by bringing the western side of the city closer to the Queen Street valley via a green boulevard, among other things.
The other massive opportunity of course is the City Rail Link (CRL). By inserting stations into low land value areas, there would be the effect of raising property values with “tent poles.” The land values of the stations would be directly influenced by their new found proximity to the most valuable land in the city.
To recap, there remains a place premium in the lower Queen St valley due to its central location and its high level of local and regional connectivity. Property values are highly influenced by proximity to this premium location as witnessed in the above charts. Public realm improvements that remove barriers of access to the centre, such as the one-way street couplet system, will raise land values by bringing parts of the city closer to the centre, and the CRL will effectively put places right next to the highest land values, thereby spreading land values across the city centre and beyond.