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

Author

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  • Qianyao Li

    (Wuhan University of Technology, China)

  • Junwu Wang

    (Wuhan University of Technology, China)

  • Judith Callanan

    (RMIT University, Australia)

  • Binbin Lu

    (Wuhan University, China)

  • Zeng Guo

    (Wuhan University of Technology, China)

Abstract

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.

Suggested Citation

  • Qianyao Li & Junwu Wang & Judith Callanan & Binbin Lu & Zeng Guo, 2021. "The spatial varying relationship between services of the train network and residential property values in Melbourne, Australia," Urban Studies, Urban Studies Journal Limited, vol. 58(2), pages 335-354, February.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:2:p:335-354
    DOI: 10.1177/0042098019896977
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    Cited by:

    1. Rémy Le Boennec & Julie Bulteau & Thierry Feuillet, 2022. "The role of commuter rail accessibility in the formation of residential land values: exploring spatial heterogeneity in peri-urban and remote areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 163-186, August.
    2. Zhang, Min, 2023. "Value uplift from transit investment-Property value or land value? A case study of the Gold Coast light rail system in Australia," Transport Policy, Elsevier, vol. 132(C), pages 88-98.

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