CPTED AND HOUSING MARKET RESPONSES SPILLOVERS

Abstract

While the potential relevance between the housing market and the surrounding facilities being well defined, only a handful of empirical evidence of the slight change in the surrounding environment's impact on the housing market exists. This thesis aims to quantify the housing market spillover effect of Crime Prevention through Environmental Design (CPTED). The study analyzes the response of the housing market adjacent to the CPTED project in Busan, South Korea by applying a difference-in-difference. The magnitude of the effect on the housing market varies depending on the distance and time from the CPTED and the housing type. The price of multifamily within 1000m from CPTED increases by 4.1% while Apartment price drops by 4.8%. This difference depends on whether the unit is within the gated community or not. The findings enhance our understanding of market responses to the slight change in surrounding environments, such as potential crime risk.