Housing Price Gradient with Two Workplaces - An Empirical Study in Hong Kong
Posted: 11 Sep 2008
Date Written: September 11, 2008
The classical land market model assumes a one-workplace scenario. However, with the globalization trend, travel between two workplaces is becoming more and more common. This paper develops a residential location choice model based on the classical land market model, but relaxes the assumption of a single workplace. The unit housing price is shown to be higher for housing which is closer to the more frequently traveled workplace, and the price gradient is also shown to have changed, with respect to the relative visiting frequencies of the workplaces. Empirical evidence is given by studying housing prices along a major railway in Hong Kong. The results have important implications on the predictive power of polycentric models.
Keywords: Workplaces, Housing demand, Price gradient, Commuting mileage, Traveling frequency
JEL Classification: R21
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