Housing Price Gradient with Two Workplaces - An Empirical Study in Hong Kong

Posted: 11 Sep 2008  

Chung Yim Edward Yiu

Chinese University of Hong Kong - Department of Geography and Resource Management

Date Written: September 11, 2008

Abstract

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

Suggested Citation

Yiu, Chung Yim Edward, Housing Price Gradient with Two Workplaces - An Empirical Study in Hong Kong (September 11, 2008). Regional Science and Urban Economics, Vol. 37, 2007. Available at SSRN: https://ssrn.com/abstract=1266447

Chung Yim Edward Yiu (Contact Author)

Chinese University of Hong Kong - Department of Geography and Resource Management ( email )

Shatin
the New Territories
Hong Kong
Hong Kong

HOME PAGE: http://www.grm.cuhk.edu.hk/eng/people/ppl/fac_YiuEdward.html

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