The spatial varying relationship between services of the train network and residential property values in Melbourne, Australia

Urban Studies ◽  
2020 ◽  
pp. 004209801989697
Author(s):  
Qianyao Li ◽  
Junwu Wang ◽  
Judith Callanan ◽  
Binbin Lu ◽  
Zeng Guo
Keyword(s):  
Local Level ◽  
Property Values ◽  
Residential Property ◽  
Spatial Effects ◽  
Hedonic Price ◽  
Residential Properties ◽  
Train Services ◽  
Service Frequency ◽  
Residential Property Values ◽  
The Relationship

This study investigates the spatial effects of the service frequency and transport interchange facilities of rail stations on residential property values for the entire metropolitan train network in Melbourne. Residential properties are classified as either detached or attached dwellings. Given that a traditional hedonic price model cannot handle the spatial dependence and spatial non-stationarity of the housing market, several geographically weighted regression (GWR) models are used and multicollinearity is considered; the model with the Euclidean distance metric outperforms others. Results indicate that the service frequency and facilities of the stations influence the residential property values in a spatially variable way. For every 1 km closer to the train stations, an increase in the frequency of the train services per unit results in a change in the residential property values ranging from −4.01% to 2.71%; an improvement in the transport interchange facilities per unit results in a change in the residential property values ranging from −29.93% to 47.04%. Crime and retail activities that indirectly affect the relationship between rail stations and residential property values are also identified. For every 1 km closer to the train stations, the crime density increases significantly from 5.64% to 42.88% and this occurs in one-fifth of the areas in Melbourne. In contrast, the relationship between retail activities and train stations remains spatially stable. This study complements the relatively scarce literature on the link between railway service levels and residential property values while extending the case study to the local level.

scholarly journals The Effect of HOPSCA on Residential Property Values: Exploratory Findings from Wuhan, China

2019 ◽  
Vol 11 (2) ◽  
pp. 471 ◽  
Author(s):  
Zhijiao Qin ◽  
Yan Yu ◽  
Dianfeng Liu
Keyword(s):  
Real Estate ◽  
Property Values ◽  
Development Project ◽  
Urban Life ◽  
Residential Property ◽  
Mixed Use ◽  
Residential Properties ◽  
Quality Of Urban Life ◽  
Residential Property Values

Mixed-use development is theoretically considered to enhance the residential value of an area. However, limited empirical research has focused on European and North American cities. HOPSCA is a real estate project that integrates hotels, offices, parks, shopping malls, conference centers, and apartments. As an important mixed-use development project in Chinese cities, HOPSCA is designed to improve the quality of urban life and to enhance the residential value of an area. Few studies have explicitly examined the effect of HOPSCA on residential property values, let alone linked this question to particular types of HOPSCA. To bridge this research gap, we selected Wuhan City in China as a case study to explore the effects of HOPSCA on residential property values. Specifically, we used the potential model to quantify the effects of HOPSCA and used the geographically weighted regression (GWR) method to estimate the relationship between HOPSCA variables and residential property values. The results are as follows: (1) the effects of HOPSCA on residential property values are statistically significant with positive and negative effects. The balanced-development HOPSCA generated the greatest effects, with the highest premium of 10.76% placed on residential properties. Moderate price premiums of 3.57% and 1.83% were generated under the influence of the commerce-oriented HOPSCA and housing-oriented HOPSCA, respectively. By contrast, the business-oriented HOPSCA exerted a negative effect on residential property (−2.43%). (2) Significant spatial heterogeneity exists on the effect of HOPSCA on residential property values. The results showed that the influence of different types of HOPSCA, viz. the higher the compatibility between the HOPSCA type and the socioeconomic context of Wuhan, the higher the premium captured by residential properties within the city areas. HOPSCA benefits the improvement of the quality of urban life, which promotes urban development. For policy makers and real estate developers, our findings suggest that matching the development types and the spatial layouts of HOPSCA with the regional socioeconomic contexts is critical for enhancing the value performance of such projects.

Transport infrastructure, accessibility and residential property values: evidence from Hong Kong

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jayantha Wadu Mesthrige ◽  
Tayyab Maqsood
Keyword(s):  
Hong Kong ◽  
Fixed Effects ◽  
Property Values ◽  
Transport Infrastructure ◽  
Residential Property ◽  
Fixed Effects Model ◽  
Data Set ◽  
Content Type ◽  
Residential Properties ◽  
Residential Property Values

PurposeHong Kong, like many other developed cities and countries, invests heavily in transport development. This study investigates whether the speculative benefits of future improvements in accessibility, brought about by impending transport development, will be capitalized into nearby residential property values even prior to the opening of the development.Design/methodology/approachDeviating from the standard hedonic price approach, the present study employed a fixed-effects model with a large data set of residential property transactions in the vicinity of three-stations situated along a newly proposed mass-transit-railway line in Hong Kong.FindingsThe results suggest that the values of residential properties close to stations do reflect the accessibility enhancements to be brought about by transport improvements even before the opening of the line. Results revealed a 6.5% of property value premium after the announcement of construction; and higher up to 6.7% after the operation of the line. This indicates that forthcoming new transport-infrastructure development produces changes in spatial price-gradients for neighbouring residential properties. Findings indicate that potential buyers/investors recognized the positive benefits of the planned transportation development, even before completion of the project, and are ready to pay a premium for those properties close to railway stations, representing clear evidence that residential property prices/values, near stations, reflect anticipated accessibility enhancements brought about by transport improvements.Originality/valueThis study, using a novel approach – a fixed-effects model to capture the speculative benefits of future improvements in transport infrastructure – provides a positive hypothesis that expected benefits of future improvements in accessibility are capitalized into property values.

scholarly journals The Real Estate Impact of Recreational Areas on the Residential Property Values in Riyadh, Saudi Arabia

2019 ◽  
Vol 8 (1) ◽  
pp. 33
Author(s):  
Faisal A. Alawwad ◽  
Waleed S. Alzamil
Keyword(s):  
Urban Communities ◽  
Social Life ◽  
Property Values ◽  
Residential Property ◽  
Land Price ◽  
The Real Estate ◽  
Recreational Area ◽  
Residential Properties ◽  
Residential Property Values ◽  
The Impact

Recreational areas are one of the most important uses in the modern residential neighborhoods because they improve economic resources, social life, and environmental quality. This paper discusses the impact of recreational areas on residential property values in Riyadh. The paper relies on the descriptive and comparative analysis of the case study model 'Al-Hokair Land' by extrapolating the residents' view of the residential properties close to the recreational area in Al-Hamra neighborhood. The paper also analyzed the relationship between recreational area and land price changes in urban communities within Al-Hamra district. The paper found that the average land price in Al-Hamra district is $826 per square meter, which is the highest compared to the neighboring areas. Moreover, land prices in urban communities near the recreational area are the highest with an average of $933 per square meter. Finally, the value of residential properties areas is affected by environmental, security, urban or social factors associated with recreational activity. Therefore, the paper recommends improving the quality of the urban environment to ensure the stability of the residential properties value in line within framework of the Saudi Vision 2030.

scholarly journals Impact of light rail line on residential property values – a case of Sydney, Australia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Felice Fam ◽  
Olalekan Shamsideen Oshodi ◽  
Abiodun Kolawole Oyetunji
Keyword(s):  
Property Values ◽  
Hedonic Pricing ◽  
Residential Property ◽  
Light Rail ◽  
Broad Perspective ◽  
Content Type ◽  
Residential Properties ◽  
Residential Property Values ◽  
The Impact ◽  
Sydney Australia

Purpose The construction of new transportation infrastructure tends to affect the adjoining properties, economy and environment. In particular, studies have investigated the change in the value of properties due to increased access to transportation facilities. The purpose of this paper is to examine the impact of the recently completed light rail on residential property values in Sydney, Australia. Design/methodology/approach Sales data of residential properties was extracted from the CoreLogic’s RP database. The hedonic pricing model was used to assess the effect of proximity to the light rail stops. Two models were developed for the announcement and construction phases of the light rail project. Findings It was found that during the announcement phase, properties located within the 400 m radius from the station were 3.3% more expensive than those within the 400–800 radius. At the construction stage, the properties within the 0–400 m radius from the stops sold at 3.1% more than those within the 400–800 m radius. This study concludes that a positive relationship exists between the values of residential property and proximity to light rail stations. Practical implications These findings would be useful for policymakers to develop land value capture programs for infrastructure funding and to real estate professionals and investors for investment in future transit-oriented development. Originality/value Previous studies that aimed at examining the impact of light rails on residential properties values around universities are limited. Hence, this study provides a broad perspective on the impact of light rail on residential properties values.

scholarly journals Use of Geographically Weighted Regression (GWR) Method to Estimate the Effects of Location Attributes on the Residential Property Values

2017 ◽  
Vol 49 (1) ◽  
pp. 97 ◽  
Author(s):  
Mohd Faris Dziauddin ◽  
Zulkefli Idris
Keyword(s):  
Geographically Weighted Regression ◽  
Geographical Area ◽  
Property Values ◽  
Weighted Regression ◽  
Residential Property ◽  
Spatial Effects ◽  
Kuala Lumpur ◽  
Global Parameter ◽  
Residential Property Values ◽  
The Government

This study estimates the effect of locational attributes on residential property values in Kuala Lumpur, Malaysia. Geographically weighted regression (GWR) enables the use of the local parameter rather than the global parameter to be estimated, with the results presented in map form. The results of this study reveal that residential property values are mainly determined by the property’s physical (structural) attributes, but proximity to locational attributes also contributes marginally. The use of GWR in this study is considered a better approach than other methods to examine the effect of locational attributes on residential property values. GWR has the capability to produce meaningful results in which different locational attributes have differential spatial effects across a geographical area on residential property values. This method has the ability to determine the factors on which premiums depend, and in turn it can assist the government in taxation matters.

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