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Anticipatory Effects of Rail Upgrades: Auckland’s Western Line

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  • Arthur Grimes

    () (Motu Economic and Public Policy Research, University of Waikato)

  • Chris Young

    () (Motu Economic and Public Policy Research)

Abstract

We examine effects of urban passenger rail upgrades to Auckland’s Western Line. The upgrades, and associated urban renewal projects, were announced in mid-2005. International experience indicates that the anticipated benefits of the upgrades should be factored into people’s location and pricing decisions on announcement. We utilise unit record house sale price data, using a new repeat-sales methodology, to measure house price appreciation, testing the hypothesis that price appreciation is affected by proximity to Western Line stations. We find statistically significant rises in values of houses located near stations upon announcement.

Suggested Citation

  • Arthur Grimes & Chris Young, 2010. "Anticipatory Effects of Rail Upgrades: Auckland’s Western Line," Working Papers 10_11, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:10_11
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    References listed on IDEAS

    as
    1. Arthur Grimes & Yun Liang, 2007. "Spatial Determinants of Land Prices in Auckland:Does the Metropolitan Urban Limit Have an Effect?," Working Papers 07_09, Motu Economic and Public Policy Research.
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    Cited by:

    1. Arthur Grimes & Chris Young, 2010. "A Simple Repeat Sales House Price Index: Comparative Properties Under Alternative Data Generation Processes," Working Papers 10_10, Motu Economic and Public Policy Research.

    More about this item

    Keywords

    Rail infrastructure investment; urban regeneration;

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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