The Effects of Expected Transport Improvements on Housing Prices

Posted: 11 Sep 2008  

Chung Yim Edward Yiu

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

Siu Kei Wong

University of Hong Kong

Date Written: September 11, 2008

Abstract

Improvements in transport were commonly found to have a positive effect on the price of housing. As the construction of infrastructure often lasts for years, it is plausible to assume that investors will take expected improvements into consideration when pricing and trading neighbourhood properties. However, there have been few investigations of such effects. This paper is an empirical study of whether premiums were paid for the expected benefits offered by a new tunnel before its completion. The results showed that there were positive price expectation effects well before the completion of the tunnel. The expectation effects allow the government to finance infrastructure projects by selling land in the affected districts in advance.

Keywords: transportation improvement works, housing price expectation, panel data, hedonic pricing model, price index, price gradient

JEL Classification: R41

Suggested Citation

Yiu, Chung Yim Edward and Wong, Siu Kei, The Effects of Expected Transport Improvements on Housing Prices (September 11, 2008). Urban Studies, Vol. 42, No. 1, 2005. Available at SSRN: https://ssrn.com/abstract=1266448

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

Siu Kei Wong

University of Hong Kong ( email )

Pokfulam Road
Hong Kong, HK
China

Paper statistics

Abstract Views
574