Housing Price Gradient Changes between Macau and Hong Kong: Neighboring City Effect
International Journal of Housing Markets and Analysis, Vol. 1, No. 2, pp. 195-206, 2008
21 Pages Posted: 17 Sep 2008
Date Written: September 15, 2008
This paper applies a two-workplace residential location choice model to study the housing price gradient changes between Macau and Hong Kong. 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 found that housing price gradient from Macau to Hong Kong is flattened when more non-resident workers traveled from Hong Kong to Macau, ceteris paribus. The results have important implications on polycentric city models, and provide a novel method to study neighboring city effects on housing price.
Keywords: workplaces, housing demand, price gradient, commuting mileage
JEL Classification: R21
Suggested Citation: Suggested Citation