A novel hedonic price modelling approach for estimating the impact of transportation infrastructure on property prices

Scott N Lieske, Ryan van den Nouwelant, Jung Hoon Han and Christopher Pettit
Additional contact information
Scott N Lieske: University of Queensland, Australia
Ryan van den Nouwelant: Western Sydney University, Australia
Jung Hoon Han: University of New South Wales, Australia
Christopher Pettit: University of New South Wales, Australia

Urban Studies, 2021, vol. 58, issue 1, 182-202

Abstract: Hedonic estimations of the effect of transport infrastructure on property prices vary widely. This high variability demonstrates a deficit in our understanding of these relationships, limits the utility of econometrics for the valuation of urban property markets, and limits the development and implementation of effective and fair market-based policy tools. Several avenues may lead to improved consistency: re-consideration of accessibility, inclusion of urban design characteristics, assessment of spatial dependence and spatial heterogeneity, and consideration of geographic scale. This paper outlines the rationale and opportunities for inclusion of, and presents empirical tests for, these assertions using a case study in western Sydney, Australia. Results show a number of urban design characteristics to be significant determinants of residential property price. Street connectivity and higher density in areas surrounding residences negatively impact price, higher density close to train stations positively impacted price in one model. Park-and-ride stations led to decreases in property values. Smaller study area results indicate a nonlinear relationship between distance to train station and property price and a disamenity impact for residences within 400 m of train stations. Relative accessibility measured as frequency of peak hour trains is a significant and positive determinant of price in the larger study area. Incorporation of a price trend surface and estimation using a spatial error model reduce the extent to which spatial autocorrelation overstates the effect of a train station on prices. These conceptual and empirical improvements further develop our understanding of the effect of transport infrastructure on property values.

Keywords: built environment; econometric; economic processes; infrastructure; method; spatial; theory; 建筑环境; è®¡é‡ ç» æµŽå­¦; ç» æµŽè¿‡ç¨‹; 基础设施; 方法; 空间; ç †è®º (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0042098019879382 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:58:y:2021:i:1:p:182-202

DOI: 10.1177/0042098019879382

Access Statistics for this article

More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().