TY - JOUR
T1 - An empirical study of the impact of vehicular traffic and floor level on property price
AU - Wen, Haizhen
AU - Gui, Zaiyuan
AU - Zhang, Ling
AU - Hui, Eddie C.M.
PY - 2020/3
Y1 - 2020/3
N2 - Urban road traffic often generates noise and air pollution, thereby resulting in a disamenity effect on surrounding residential property and subsequently affecting the willingness to pay of homebuyers. Given that the distribution of road-traffic externalities varies in vertical space, heterogeneous effects of road traffic result on properties situated in different floors. Based on data of 7590 multi-story and 4980 high-rise residential property in Hangzhou, China in 2017, this study constructs hedonic price and spatial econometric models to investigate the relationship among road-traffic externality, floor level, and property price. Empirical results show that road-traffic externalities have a significant disamenity effect on property price. Different from existing studies, we find that the floor level has a significant moderating effect on the disamenity effect of road traffic. In particular, effects on different submarkets reveal that capitalization rate is non-monotonic in vertical space and different in multi-story and high-rise buildings. Previous literature has largely ignored these issues, but the latter is crucial in estimating the influence of road-traffic externalities on property price.
AB - Urban road traffic often generates noise and air pollution, thereby resulting in a disamenity effect on surrounding residential property and subsequently affecting the willingness to pay of homebuyers. Given that the distribution of road-traffic externalities varies in vertical space, heterogeneous effects of road traffic result on properties situated in different floors. Based on data of 7590 multi-story and 4980 high-rise residential property in Hangzhou, China in 2017, this study constructs hedonic price and spatial econometric models to investigate the relationship among road-traffic externality, floor level, and property price. Empirical results show that road-traffic externalities have a significant disamenity effect on property price. Different from existing studies, we find that the floor level has a significant moderating effect on the disamenity effect of road traffic. In particular, effects on different submarkets reveal that capitalization rate is non-monotonic in vertical space and different in multi-story and high-rise buildings. Previous literature has largely ignored these issues, but the latter is crucial in estimating the influence of road-traffic externalities on property price.
KW - Floor level
KW - Moderating effect
KW - Property price
KW - Road-traffic externality
KW - Spatial econometric model
KW - Vertical heterogeneity
UR - http://www.scopus.com/inward/record.url?scp=85079826969&partnerID=8YFLogxK
U2 - 10.1016/j.habitatint.2020.102132
DO - 10.1016/j.habitatint.2020.102132
M3 - Journal article
AN - SCOPUS:85079826969
SN - 0197-3975
VL - 97
JO - Habitat International
JF - Habitat International
M1 - 102132
ER -
