VU Research Portal Railway Impacts on Real Estate Prices Debrezion Andom, G. 2006 document version Publisher's PDF, also known as Version of record Link to publication in VU Research Portal citation for published version (APA) Debrezion Andom, G. (2006). Railway Impacts on Real Estate Prices. Thela Thesis/TI. General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal ? Take down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. E-mail address: [email protected] Download date: 29. Sep. 2021 Railway Impacts on Real Estate Prices ISBN 90 5170 968 4 Cover design: Crasborn Graphic Designers bno, Valkenburg a.d. Geul This book is no. 389 of the Tinbergen Institute Research Series, established through cooperation between Thela Thesis and the Tinbergen Institute. A list of books which already appeared in the series can be found in the back. VRIJE UNIVERSITEIT Railway Impacts on Real Estate Prices ACADEMISCH PROEFSCHRIFT ter verkrijging van de graad Doctor aan de Vrije Universiteit Amsterdam, op gezag van de rector magnificus prof.dr. L.M. Bouter, in het openbaar te verdedigen ten overstaan van de promotiecommissie van de faculteit der Economische Wetenschappen en Bedrijfskunde op dinsdag 28 november 2006 om 13.45 uur in het auditorium van de universiteit, De Boelelaan 1105 door Ghebreegziabiher Debrezion Andom geboren te Halibo, Eritrea promotor: prof.dr. P. Rietveld copromotor: dr. E. Pels For my Wife Martha Yitbarek and Son Solomon G. Debrezion Preface For the Last four years I have been working on my Ph.D. study based on a real estate project funded by the Netherlands Organization for Scientific Research (NWO). With the help of the ever gracious God and the support of many, now I have come to the end of writing the dissertation. Let me take the time and the space to thank the people who helped me during the course of my research. My first words of thanks go to my supervisor prof.dr. Piet Rietveld. In the midst of many difficulties at the start of my studies, by steadfastly committing himself, he has helped me to set afoot. I thank him for this and showing confidence in me all along. During the course of the research I have gained invaluable research insights and direction from him. My questions for direction were welcomed at all times, even at the tightest imaginable schedule. Equally, I would like to thank my co-promoter dr. Eric Pels. More than anyone else, he was there for me for corrections and insights. His detailed comments were instrumental in my research works. Because of his consistency in correction, he has helped me to shape my writing style. As I have pointed out earlier, the real estate project on which my Ph.D. study is based was funded by the Netherlands Organization for Scientific Research (NWO). This Ph.D. project also partly took place in the context of the Habiforum programme on Innovative Land Use, in particular the theme of land use around transport nodes. I would like to extend my thanks to the organization for all the financial support. Without its generous support the study would not have been possible. In addition to the financial support, the research has required different kinds of data. Acquiring the relevant data was also possible by the cooperation of many parties. My first words of thanks go to the Dutch Brokers Association (NVM). They have allowed me to use a rich and quality data set on house sales transactions for an extended period of time. Second, I have received unreserved use of many rich and quality data sets from the Dutch Railway Company (NS). Many thanks for their cooperation. Special thanks to Mr. Mark van Hagen from NS for his cooperation in this regard. Thirdly, I would like to thank DTZ Zadelhoff for providing me with data on the rent of office spaces. In that regard special thanks to Mr. Bart Louw. Lastly, but surely not least, I would like to extend my words of thanks to people in the SPINlab of the department of Spatial Economics for allowing me to use data that involved GIS and for related technical assistance. Special words of thanks go to Jasper Dekkers. He has given me unreserved cooperation in this regard. Many thanks. In i addition, I would like to thank Alfred Wagtendonk and Nancy Omtzigt for their technical assistance at the beginning of my GIS exercise. Besides the help of my supervisors, I was turning to my colleagues for insights and reflections both at the department of Spatial Economics and Tinbergen Institute Amsterdam. Many thanks to dr. Thomas de Graaff for his insights in Spatial Econometrics, Jaap de Vries for his insights in Spatial Interaction Modelling, dr. Martijn Brons for his insight in Meta analysis and others. Literally, every one in the department has contributed to my experience in one way or another making my stay at the Tinbergen Institute Amsterdam and the Department of Spatial Economics enjoyable. Special words of appreciation go to my office mates Yin Yen Tseng, Vanessa Eve Daniel, and Olaf Jonkeren. Jo śe Melendeze-Hidalgo, Romy Zang and Alex Halsema deserve words of thanks for their friendship. In addition, I thank Alex Halsema, dr. Eric Pels and Olaf Jonkeren for the translation work of the Dutch summary. I also am very much indebted to the members of the reading committee of this dissertation: prof.dr. Luca Bertolini, prof.dr. Peter Nijkamp, prof.dr. Hugo Premius, prof.dr. Bert van Wee, and prof.dr. Mark Wardman. Many thanks for their willingness and time for reading and commenting on the draft of the dissertation. Mrs Patricia Elleman deserves special thanks for her language correction of the dissertation. She has gone over it several times with great detail. Her corrections were very useful. Outside the scientific circle, I also have been supported by many. My beloved wife Martha Yitbarek takes the star thanks. She has contributed a lot in making the concluding work of my dissertation without stress. And this was despite her uncomfortable months of early pregnancy for our first baby Solomon. Million thanks Martha and I love you. I also extend by thanks to my parents for supporting me all along and for preparing me to this stage from my early age. I thank my sisters and brothers for their encouragement. Praises be to God. Many thanks Ghebreegziabiher Debrezion Amsterdam, October 2006. ii CONTENTS 1 INTRODUCTION ......................................................................................................................................... 1 1.1 SETTING THE SCENE ................................................................................................................ 1 1.2 TRANSPORT INFRASTRUCTURE AND LAND PRICES: MOTIVATION ............................ 2 1.3 RESEARCH QUESTIONS........................................................................................................... 4 1.4 METHODOLOGICAL APPROACH ........................................................................................... 5 1.5 RESEARCH SCOPE..................................................................................................................... 8 1.6 RESEARCH ORGANIZATION................................................................................................... 8 2 THE IMPACT OF RAILWAY STATIONS ON RESIDENTIAL AND COMMERCIAL PROPERTY VALUE: A META-ANALYSIS.............................................................................. 11 2.1 INTRODUCTION....................................................................................................................... 11 2.2 LITERATURE REVIEW: THEORIES AND EMPIRICAL FINDINGS ................................... 12 2.3 META-ANALYSIS OF THE STUDIES..................................................................................... 16 2.3.1 Model specification.............................................................................................................. 17 2.3.2 Data and methodology......................................................................................................... 18 2.3.3 Descriptive statistics............................................................................................................ 24 2.3.4 Random effect meta-regression model................................................................................. 25 2.3.5 Estimation Results ............................................................................................................... 27 2.4. CONCLUSION.......................................................................................................................... 31 APPENDIX 2AI: DEDUCING THE CONTINUOUS RAILWAY STATION EFFECT FROM DISCRETE MEASURES ......................................................................................................................................... 33 3 THE EFFECTS OF RAILWAY INVESTMENTS IN A POLYCENTRIC CITY: A COMPARISON OF COMPETITIVE AND SEGMENTED LAND MARKETS ........................35 3.1