THE IMPACT OF SEOUL'S SUBWAY LINE 5 ON RESIDENTIAL PROPERTY VALUES
infrastructure - station, land use - impacts, mode - rail, mode - mass transit, mode - subway/metro
Underground railways, Transit, Subways, Subway stations, Seoul (Korea), Ridership, Residential areas, Regression analysis, Regression, Public transit, Property values, Patronage (Transit ridership), Mass transit, Local transit, Economic impacts, Accessibility
A new subway line with 51 stations in Seoul, Korea, was completed in 1997, and as of 2000 had a daily ridership of 795,000. This paper analyses the impact of this new subway line on residential property values by using a hedonic pricing regression analysis. The model shows that distance from a subway station on this line had a statistically significant effect on residential prices before the line was opened. This is consistent with the anticipatory effect observed in previous studies. Once the line was open, however, prices increased only slightly. Other variables, such as size of the unit, quality of the school district and proximity to a high-status subcenter showed more of an impact on house prices than did proximity to the new line. These findings suggest that although the new line added a significant number of riders to the overall subway system, many of the benefits of the line's construction were to riders throughout the system (in terms of access to major subcenters and recreational resources) rather than to only riders from the neighborhoods surrounding the new line.
Bae, C-H, Jun, M-J, Park, H. (2003). THE IMPACT OF SEOUL'S SUBWAY LINE 5 ON RESIDENTIAL PROPERTY VALUES. Transport Policy, Volume 10, Issue 2, p. 85-94.