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Impacts of airport traffic volumes on house prices of New Zealand’s major regions: A panel data approach

Author

Listed:
  • Wai Hong Kan Tsui

    (Massey University, New Zealand; The Chinese University of Hong Kong, Hong Kong)

  • David Tat Wei Tan

    (University of New South Wales, Australia)

  • Song Shi

    (Massey University, New Zealand)

Abstract

The direction and mechanisms of the relationship between airport traffic volumes and property prices are somewhat unclear in the literature. This study adds to that body of knowledge by empirically investigating the role of airports as an essential driver of economic activity by creating employment and facilitating air travel between destinations. The two-stage least-squares (2SLS) approach is employed to investigate the link between house prices and the airport traffic volumes of New Zealand’s three key regions and airports (Auckland, Canterbury/Christchurch and Wellington) from July 2004 to December 2014. The empirical findings of the study suggest that airport traffic volumes positively and significantly influence the urban house prices of New Zealand’s three major regions.

Suggested Citation

  • Wai Hong Kan Tsui & David Tat Wei Tan & Song Shi, 2017. "Impacts of airport traffic volumes on house prices of New Zealand’s major regions: A panel data approach," Urban Studies, Urban Studies Journal Limited, vol. 54(12), pages 2800-2817, September.
    • Handle: RePEc:sae:urbstu:v:54:y:2017:i:12:p:2800-2817
    DOI: 10.1177/0042098016660281
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    References listed on IDEAS

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