From hard bed to luxury home: impacts of reusing HM Prison Pentridge on property values

Abstract

This paper uses statistical analyses to understand the effect of proximity of old prisons on property prices. The study employed semi-log hedonic regression models; a quantitative research method applied to assess the impact of proximity to heritage gaols on property prices for a case study of HM Prison Pentridge in the time range between 2015-2019. Results demonstrated that the former Pentridge has a variable effect on properties lying in and around its current heritage borders. Pentridge shows a diminution effect on prices of residential properties on its land currently being developed to a mixed-use precinct, as well as its intimate surrounding residences. Inversely, Pentridge shows a positive price-effect on properties lying at distances between 400m to the maximum study range of 1400m in the case of 'houses', and between 600m to the range of 1000m in the case of 'units'. Findings of this research suggest that prices of properties with direct visual access to Pentridge's structures are negatively affected. Results also suggest that Pentridge's current redevelopment project may have contributed positively to property prices lying outside the direct visibility zone. To be able to further validate these interpretations, similar research may consider other variables influencing property valuation, such as direct visibility of the gaol as well as interviews that assess the 'attractability' of Pentridge's redevelopment. Future studies may examine the rate of change in property price along time for each distance band from the gaol borders. Future research may also consider duplicating the methodology to assess the comfortability towards gaols converted to museums, as well as gaols that are still in operation. The originality of this research emerges from the distinct lack of quantitative evidence in the current literature. Most research has investigated uncomfortable heritage focusing on qualitative assessments of memory, stigma, commemoration, and shame, with limited scholarly attention paid towards property depreciation effects as a result of Australia's prison history, nor increasing effects due to gaols' reuse and redevelopment. Decision-makers and stakeholders of equivalent dark heritage reuse projects will find this research useful in understanding potential impacts on surrounding property prices. Property valuers and real estate companies operating in Coburga suburb of Melbourne, Australiamay use the related tables and figures in guiding their business for the coming years.

From Hard Bed to Luxury Home: The Metamorphosis of HM Prison Pentridge

“…According to Pratt (2003), while in operation, areas around prisons had themselves become imprisoned. HMPP reflects this phenomenon, as it represents a powerful symbol of evil and grimness (Shehata et al 2020). Despite being located near civic symbols of good, while being operational, it is reported a few times in Broome (1988) Additionally, as theorised by Koster and Rouwendal (2012), developments offering diversified uses and more density of employment positively correlate with property prices, an effect which may have happened in Coburg after 15 years from the start of its transformation.…”

“…"Good and evil are symbolically and uniquely meshed as several churches and schools share a common back fence with […] Victoria's foremost gaol" (Broome 1987, p. ix). The prison's grey walls, towers, and hefty cell blocks are still visible from many of the local roads and suburbs hundreds of metres away due to its perched position (Shehata et al 2020).…”

“…Farmers and locals reported impacts on property values three times in the mid-1800s, and once in 1945, following campaigns to move HMPP elsewhere (Broome 1988). Joseph Ackeroyd, the Inspector-General of Prisons, described this campaign to be based on selfish concerns of the locals to avoid the reduction of land values (Shehata et al 2020). Standing beside three churches, three schools and the chambers of local government did not pardon lower property prices.…”

“…Opposing evidence suggests that despite the general increase of property prices in Coburg, HMPP's darkness at the heart of Coburg still prevails. Shehata et al (2020) showed that residential properties that are on the development site of the former gaol, houses and units that are within the visibility range to the gaol had a notable reduction in prices in property transactions. Shehata's research was done in the period starting in January 2015 until mid-2019, which indicates that visibility of the former gaol's features are still contributing to the general discomfort of inhabitants even after more than two decades of its full closure and overweights any positive effects of the new development taking place on its land.…”

Possibilities of House Valuation Automation in the Czech Republic

“…At present, a number of automated systems are presented in the professional literature [6][7][8]. In most cases, however, these are systems for valuing apartments [9,10]. The authors emphasize that the demand for and greater expansion of automated valuation methods will lead to greater transparency in the real estate market [11].…”