Ulaanbaatar is a growing city where expatriates vie with locals on bustling streets, commuting to and from leisure and business premises.  And as business people return to the city after a hiatus brought by the slump in commodity prices, a new trend is emerging: buildings near green spaces- but in central locations- are commanding a premium compared with other developments.

This trend is not wholly surprising. In winter, temperatures plunge to -40 degrees Celsius, and in the collective hurry to remain warm, settlements burn coal and other fossil fuels to compensate. Meanwhile, individuals use vehicles more than otherwise, congesting highways and heightening pollution. Many savvy families, realize the important health and lifestyle benefits of being central, provided there is access to green space.

Studies have long suggested a correlation between price appreciation and bordering or overlooking parkland. Hedonic value has been attributed to property near Central Park in New York, Regent’s Park in London, and more recently, well placed schemes in Seoul and Beijing. Accessibility and quality of space are the main determinants, and though, studies have not been unanimous, there is a compelling body of evidence to suggest a causal link.

This trend may be even more discernible in frontier economies. A rise in living standards is often allied to an increased concern for health and well-being. In Ulaanbaatar, there is a shortage of green space, and developments near parkland are desirable, but likely to become still more appealing.  Lee Cashell, CEO of one of the largest developers in the country, APIP, recently commented that the Olympic Residence, its flagship scheme, was a beneficiary of this trend. ‘We overlook the National Amusement park, which underwent a major revamp in recent years. Owner occupiers have been drawn to this amenity, and expats see health benefits, and reduced commutes as a major plus in Winter.’ Cashell commented that these twin phenomena were helping drive strong rental yields.

Ulaanbaatar may be fundamentally distinct to more established urban areas, but as with so much in the world of real estate, the old adage of ‘location, location, location’ seems as applicable in the home of Chinggis Khan, as it does on the gilded streets of Chelsea or Manhattan. 

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