The Local and Network Effects of Rail Transit Network Expansion on Retail Property Values

Authors

Yi Zhu
Mi Diao

Document Type

Journal Article

Publication Date

2024

Subject Area

place - asia, place - urban, mode - rail, economics - value capture, land use - transit oriented development, land use - impacts

Keywords

difference-in-differences, local effect, network effect, rail transit, retail property values

Abstract

Using Singapore as an example, we find that the opening of new rail transit lines can boost retail property values in areas not only along the new lines (local effect) but also along the existing lines (network effect) due to the increase in network size. We also show the local effect of a new rail line changes over time at different development stages. Ignoring the time-varying local effect and the network effect could lead to biased estimates of the value-added of rail transit and misguide policy formation in rail transit investment, land value capture, and transit-oriented development.

Rights

Permission to publish the abstract has been given by SAGE, copyright remains with them.

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