TY - JOUR
T1 - The impact of urban rail transit on commercial property value
T2 - New evidence from Wuhan, China
AU - Xu, Tao
AU - Zhang, Ming
AU - Aditjandra, Paulus T.
N1 - Funding Information:
This research was supported by China’s National Natural Science Foundation Grants 51278395 . The Authors would like to acknowledge the support of PEOPLE MARIE CURIE ACTIONS:PUMAH (Planning, Urban Management and Heritage) Project (FP7-PEOPLE-2011-IRSES), funded by the European Union Seventh Framework Programme ([FP7/2007-2013] [FP7/2007-2011]) under grant agreement no. 295045 . The Authors would like to thank Ann Zunder of Newcastle University, UK, for the proof reading. The Authors would like to thank undergraduate students from School of urban design, Wuhan University, China, for their hard work on data collection.
Publisher Copyright:
© 2016 Elsevier Ltd
PY - 2016/9
Y1 - 2016/9
N2 - The interaction between rail transit and the urban property market is a vital foundation for planning transit-based policy such as Value Capture and Transit Oriented Development (TOD). Yet only few studies have reported the impact of transit access on commercial property value. This paper presents empirical evidence from Wuhan, China, to enrich the knowledge in the subject area. Spatial autoregressive models were employed to estimate the commercial value capture, based on 676 observations along Wuhan's metro rail line through the main business districts. Value appreciation was discovered within the 400 m radius of road network distance from Metro stations. The transit access premiums present as two tiers: 16.7% for the 0–100 m core area and approximately 8.0% within the 100–400 m radius. The result demonstrates the potential benefit of adopting value capture and optimising TOD planning to support sustainable urban rail transit investment. Amid rapid urbanisation in China, the evidence reported here could help better inform cities, across the developing world and beyond, of the benefits of adopting rail transit-based policy.
AB - The interaction between rail transit and the urban property market is a vital foundation for planning transit-based policy such as Value Capture and Transit Oriented Development (TOD). Yet only few studies have reported the impact of transit access on commercial property value. This paper presents empirical evidence from Wuhan, China, to enrich the knowledge in the subject area. Spatial autoregressive models were employed to estimate the commercial value capture, based on 676 observations along Wuhan's metro rail line through the main business districts. Value appreciation was discovered within the 400 m radius of road network distance from Metro stations. The transit access premiums present as two tiers: 16.7% for the 0–100 m core area and approximately 8.0% within the 100–400 m radius. The result demonstrates the potential benefit of adopting value capture and optimising TOD planning to support sustainable urban rail transit investment. Amid rapid urbanisation in China, the evidence reported here could help better inform cities, across the developing world and beyond, of the benefits of adopting rail transit-based policy.
KW - Commercial property
KW - Proximity premium
KW - Rail transit
KW - TOD planning
KW - Value capture
KW - Wuhan China
UR - http://www.scopus.com/inward/record.url?scp=84978115902&partnerID=8YFLogxK
U2 - 10.1016/j.tra.2016.06.026
DO - 10.1016/j.tra.2016.06.026
M3 - Article
AN - SCOPUS:84978115902
SN - 0965-8564
VL - 91
SP - 223
EP - 235
JO - Transportation Research Part A: Policy and Practice
JF - Transportation Research Part A: Policy and Practice
ER -
