AN economics researcher at Charles Sturt University in Bathurst says his work has proven that improving the condition of rivers in urban areas leads to higher house prices.
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Buyani Thomy, who is completing a PhD based on his research with CSU's Faculty of Business, Justice and Behavioural Sciences, has been attempting to put a value on the enjoyment of nature.
He says he has found that urban residents in houses near more natural waterways with more vegetation and less modified banks are willing to pay extra for these features.
"This was reflected in higher sale prices and rent paid by residents in this environment compared to those living near more disturbed waterways," Mr Thomy said.
"After accounting for multiple factors that affect selling prices, my research showed that improving the condition of both river channels and vegetation along rivers also leads to higher house prices than when only vegetation was improved.
"People demonstrated that they don't want to live in a 'bare and barren' ecological state which has little vegetation and highly modified channels. So any improvements will produce the highest gains in property prices."
Mr Thomy found that there were minimal rises in house prices once the river and vegetation had already been modified and further modification was carried out.
However, residents were found to place a higher premium for waterways with the highest quality with unmodified channels and good condition vegetation.
"Therefore, planners and developers should seek to improve riparian areas including removing the traditional concrete on banks and replanting native vegetation to get the best return on investments and development policies, particularly in cities," he said.
Mr Thomy's research was under the supervision of Professor Mark Morrison and Dr Roderick Duncan from CSU's Institute for Land, Water and Society.
They collaborated with the City of Canterbury Bankstown Council, Fairfield City Council, NSW Local Land Services (Greater Sydney), Sydney Water, CSIRO and Virginia Tech in the USA.
Mr Thomy said previous studies on valuing changes in river health in Australia were carried out in agricultural areas or in areas of high biodiversity, not in urban areas where most people live in Australia.
Mr Thomy plans to graduate from CSU later in 2017.
