Measuring the impact of heavy rail transport infrastructure on house prices in Melbourne, Australia: a case study of Mernda rail extension project

Abstract

Purpose: The research examines the impact of heavy rail transport infrastructure on residential property prices in Melbourne at different stages of project development using the Mernda Rail Extension Project as a case study. Design/methodology/approach: A difference-in-difference approach is used to quantitatively measure the magnitude of change in the house price at different stages of rail transport infrastructure project development. Findings: When controlling for a range of structural, neighbourhood, and locational attributes, the authors find that properties within 800 m from the proposed train station are 8.7% higher in value than those outside 800 m (but within 1,600 m). However, duri..