The influences of Sponge city on property value in Wuhan,China

The fast urbanization in China and global climate change increased the urban flood exposure in Wuhan and the increased flood risk reduce the property value in serious flooding area. The central government of China promote the application of sponge city concept to reduce the urban flood risk and improve the environment in cities. The fund shortage is one of the problems facing by sponge city construction in Wuhan and how to find the funds for the sponge city construction or how to find a suitable business model has a significant role in the sponge city pilot. To test the residence’s willingness to pay for sponge city, the research analyses the impacts of the construction of the sponge city on the housing value of the area that the sponge city construction covers. The research used a combined research method of survey and desk research. The questionnaires, interviews and secondary data analysis was conducted to analyse the impacts of construction of the sponge city on the housing value. The research result shows that more than half of the residence are willing to pay for sponge city but the amount they are willing to pay is limited. Compared with the ability to reduce flood risk, more residence is willing to pay for the ability to improve their living environment such as the increment of green area. It was suggested that sponge city construction could consider more multi-functional application so that the value of sponge city can be better recognised by the residence in Wuhan.