Exploring property value effects of ferry terminals: Evidence from Brisbane, Australia

Abstract

Property value effects of linear river ferries that service multiple stops in cities are under-explored. The Brisbane CityCat, CityHopper, and CityFerries combine to form a ferry system with 24 terminals. A geographically weighted regression (GWR) approach is used to determine property value effects of the system. Cross-sectional property data is used in combination with a set of neighborhood variables derived from 2011 census data, spatial feature location, and transport datasets (roads, busway and train station locations) for the city. The preferred global model had a good fit and showed expected signs for all parameters, showing that property prices tended to decline with distance from ferry terminals, when controlling for other variables. For every kilometer close a location is to a ferry terminal, there is an expected price increase of 4 percent on average, across the study area. The GWR local model also had good fit and suggested property value gains around specific terminals. Visual inspection suggests that locations where more ferry-oriented development opportunities have been taken in recent decades are the sites with the greatest positive property value effects. The implications are that land developers are justified in seeking ferry terminals to service their developments.