When and how much does new transport infrastructure add to property values? Evidence from the bus rapid transit system in Sydney, Australia

Document Type

Journal Article

Publication Date

2016

Subject Area

place - australasia, mode - bus rapid transit, land use - impacts, land use - planning, economics - finance

Keywords

Land value uplift, Bus Rapid Transit, Multilevel model

Abstract

This paper examines the timing of the impact of a Bus Rapid Transit (BRT) system on residential housing prices in Sydney, Australia. A multilevel model is employed to identify the housing price uplift after the opening of the BRT system. Catchment and control areas are selected from the property sales data to control for the potential external shocks to house prices. The modelling takes account of the property, neighbourhood and accessibility attributes which are expected to affect the property transaction price to quantify the land value uplift from the BRT system and the point in time when it occurs. This research found that the sales price of residential properties within 400 m of BRT stops are marginally higher than those outside of the BRT service area after the opening of the BRT system in 2003 and 2004. The research outcomes provide evidence to government sectors for planning future BRT systems and for quantifying the potential to raise financial funding for public transport improvement through the gain of land value uplift.

Rights

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

Comments

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http://www.sciencedirect.com/science/journal/0967070X

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