The impact of a busy road on apartment values - A network-level approach
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Journal Title
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Volume Title
School of Business |
Master's thesis
Authors
Date
2020
Department
Major/Subject
Mcode
Degree programme
Information and Service Management (ISM)
Language
en
Pages
58
Series
Abstract
In this thesis, two-stage least squares regression with Gaussian distance decay kernel weight was employed to investigate the connection between road type and apartment values in Helsinki, Finland. This work contributes to the past domestic literature by including demographic variables as explanatory variables and measuring the road-type specific impact that noise has on apartment values. The research questions were the following: (1) There exists a statistically significant relationship between road type and apartment values. (2) Apartments located on the busy road have a discount when compared to apartments located on the quiet roads. (3) Apartments located near motorways or trunk roads have a discount when compared to apartments that are not located near motorways or trunk roads. The results of this thesis are fully confirming the research questions of (1) and (2). The research question of (3) was partially confirmed. According to the results, there exists a statistically significant relationship between road-type and apartment values. Also, when the apartment is located within a busy road, there is a discount of 1.9 percent present. Moreover, when the apartment is located within 250 meters from trunk road or motorway, there is a discount of 4.1 percent present. On the other hand, when the apartment is located within 500 meters from the trunk road or motorway, there is an increase of 1.9 percent in apartment values.Description
Thesis advisor
Malo, PekkaViitasaari, Lauri
Keywords
real estate, spatial regression, spatial weights, noise, street-network