The impact of urban rail transit on commercial property value: New evidence from Wuhan, China
place - asia, place - urban, mode - subway/metro, land use - transit oriented development, land use - impacts, economics - value capture, policy - sustainable
Rail transit, Proximity premium, Commercial property, Value capture, TOD planning, Wuhan China
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.
Permission to publish the abstract has been given by Elsevier, copyright remains with them.
Xu, T., Zhang, M., & Aditjandra, P.T. (2016). The impact of urban rail transit on commercial property value: New evidence from Wuhan, China. Transportation Research Part A: Policy and Practice, Vol. 91, pp. 223–235.