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Title:

Capitalization Effects of Rail Transit and BRT on Residential Property Values in a Booming Economy: Evidence from Beijing

Accession Number:

01476853

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

This research investigates the capitalization effects of proximity to rail transit and bus rapid transit (BRT) in fast-growing Beijing. Few related studies have been conducted for Chinese cities because the real estate market was not established until recently. Data were collected on apartment homes sold in the Beijing metropolitan area during 2011, and hedonic price modeling was employed to gauge the price premiums or discounts associated with proximity to transit stations. Overall, the authors find an average price premium of around 5% for properties near rail transit stations, but no statistically significant effects are detected at BRT station areas. Moreover, they find that station-proximity effects tend to increase both in magnitude and spatial extent at stations farther away from the city center and at stations surrounded by low- and middle-income neighborhoods; for example, the price premium can be as high as 10% in some suburban and low-income station areas. The station-proximity effects found in Beijing have the similar magnitude as the effects found in North American cities. The authors conclude that rail-transit investment is an effective strategy for Beijing to reshape its urban spatial structure and Rail + Property Development model could be a new financing solution for rail-transit investment. This study contributes to the evidence of capitalization effects of public transit from a booming and transitional economy.

Supplemental Notes:

This paper was sponsored by TRB committee ADD30 Transportation and Land Development.

Monograph Accession #:

01470560

Report/Paper Numbers:

13-4875

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Ma, Liang
Ye, Runing
Titheridge, Helena

Pagination:

20p

Publication Date:

2013

Conference:

Transportation Research Board 92nd Annual Meeting

Location: Washington DC, United States
Date: 2013-1-13 to 2013-1-17
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; Maps; References; Tables

Geographic Terms:

Beijing (China)

Subject Areas:

Economics; Public Transportation; Railroads; Terminals and Facilities; I10: Economics and Administration

Source Data:

Transportation Research Board Annual Meeting 2013 Paper #13-4875

Files:

TRIS, TRB, ATRI

Created Date:

Feb 5 2013 12:56PM