The Impact of Transit Oriented Development (TOD) on Residential Property Prices: The Case of Box Hill, Melbourne (original) (raw)
Related papers
Journal of Transport Geography, 2016
Public transport investment is normally targeted at increasing accessibility which land rent theory identifies will in turn increase land values. There is clear policy interest in how much land values increase following a new transport investment so as to establish if there is sufficient land value uplift to capture to help pay or contribute to investment plans. Identifying uplift for residential land has been well studied in the context of new light rail systems and bus rapid transit (BRT) systems in developing countries but there is little evidence for BRT in developed countries. This paper has two objectives. First, to examine long term impact of BRT in a developed world context in Brisbane, Australia as studies in Sydney, Australia. This provides an addition to the BRT literature in developed countries where the only other suggests little uplift in comparison to developing world contexts. Second, to consider the spatial distribution of uplift which is an essential prerequisite to understanding the distributional impact if uplift is used to contribute to infrastructure provision. Spatial modelling is used to examine the accessibility impacts of the BRT and this is followed by Geographical Weighted Regression, used to examine the spatial distribution of accessibility. The results show there is greater uplift in Brisbane, as compared to Sydney, Australia which is likely due to the greater network coverage of BRT in Brisbane and a relative lack of rail based competition. Land value uplift is also spatially distributed over the network giving higher uplift in some areas than others and lower values than typically found with rail based systems in developed countries. Highlights • Being close to BRT adds a premium to the housing price • The price premiums varies over space • High-frequency feeder bus network appears to be the key for the capitalization effects • GWR improves spatial models by accounting for spatial non-nonstationarity
The Effect of Proximity to Urban Rail on Housing Prices in Ottawa
Journal of Public Transportation, 2012
Increasingly, urban rail transit (URT) is seen as a desirable solution for transportation challenges faced by both urban planners and residents of suburban areas alike. The availability and ease of access to URT, in turn, may result in distortions in local real estate markets. The conventional wisdom, in fact, suggests that construction of urban rail lines serves as a magnet for new housing development and, in turn, can lead to increases in property values in proximity to URT stations. Existing studies have, in good measure, confirmed this belief, but largely on the basis of global area studies that can often mask locally differentiating factors affecting housing prices. Using data from the City of Ottawa, this study seeks to move beyond such analyses by using spatial regression and mapping techniques that reveal that the relationship between URT stations and housing prices is far more complex than is commonly believed. The study demonstrates that while at the macro-level housing prices do vary positively with proximity to URT stations, the relationship is spatially dependent and may be affected by factors unique to specific locales.
The Effect of Proximity to Urban Rail on Housing Prices in Ottawa. (With Christopher M. Hewitt)
Journal of Public Transportation , 2013
The availability and ease of access to URT, in turn, may result in distortions in local real estate markets. The conventional wisdom, in fact, suggests that construction of urban rail lines serves as a magnet for new housing development and, in turn, can lead to increases in property values in proximity to URT stations. Existing studies have, in good measure, confirmed this belief, but largely on the basis of global area studies that can often mask locally differentiating factors affecting housing prices. Using data from the City of Ottawa, this study seeks to move beyond such analyses by using spatial regression and mapping techniques that reveal that the relationship between URT stations and housing prices is far more complex than is commonly believed. The study demonstrates that while at the macro-level housing prices do vary positively with proximity to URT stations, the relationship is spatially dependent and may be affected by factors unique to specific locales.
Journal of Transport Geography, 2020
Bus rapid transit (BRT) systems have mushroomed worldwide in the last few decades. An enriched understanding of BRT capitalization effects is essential. Although the BRT accessibility effect on housing prices has been extensively explored, the effect of proximity to the BRT corridor (which may be related to unattractive landscape and noise pollution) has been little scrutinized. More importantly, whether and how the two effects vary across price levels and space have yet to be sufficiently studied. To this end, we estimate the effect of BRT accessibility and proximity on housing prices by applying a battery of econometric methods (including hedonic pricing models, spatial regression models, quantile regression models, and a geographically weighted regression model) to 5185 observations in the housing market in Xiamen Island, China. The results of this study are: (1) BRT accessibility premiums and proximity penalties simultaneously exist in the housing market; (2) buyers of high-priced housing have a greater willingness to pay for avoiding the nuisances attributed to proximity to the BRT corridor; (3) the effect of BRT on housing prices is spatially heterogeneous; (4) the BRT accessibility effect is larger in suburban areas than in urban areas; and (5) housing prices are more predictable near the city centers than outside the area, which may be because a greater proportion of the price of a house near the city centers is derived from the location (rather than the building structure). Finally, policy implications (e.g., building acoustic barriers and planting vegetation along the BRT corridor and improving the transit service in suburban areas) are discussed.
If We Build it, Will They Pay? Predicting Property Price Effects of Transport Innovations
Environment and Planning A: Economy and Space, 2013
In this study I apply a gravity-type labor-market accessibility model to the Greater London Area to investigate house price capitalization effects. The spatial scope of labor-market effects is found to be about 60 minutes. Doubling accessibility increases the utility of an average household by about 12%. I combine the gravity approach with a transport decision model that takes into account the urban rail network architecture, allows for mode switching, and thus accounts for the effective accessibility offered by a station, to predict the property price effects of the 1999 Jubilee Line and DLR extension. A considerable degree of heterogeneity is predicted both in terms of the magnitude as well as the spatial extent of price effects around new stations. A quasi-experimental property price analysis reveals that the model performs well in predicting the effective capitalization effects, suggesting that the approach might be a viable ingredient in transport planning.
Effects of Rail Transit on Residential Property Values
Transportation Research Record: Journal of the Transportation Research Board, 2014
The impacts of a rail transit system on residential property values have been examined for many metropolitan areas in the United States, China, and other countries, yet there have been few comparison studies between countries. Studies have reported both the positive effects of rail transit resulting from improved accessibility as well as the nuisance effects from noise, pollution, crime, and unsightliness. The net effects of a rail transit system could be mixed, and there has been no agreement on which would dominate. This study used METRORail in Houston, Texas, and the Metro in Shanghai, China, as empirical cases and compared their effects on nearby residential property values. A hedonic price model with ordinary linear regression was used in the case study of Shanghai's rail transit lines. The Houston case study applied ordinary linear regression and multilevel regression techniques to examine the hierarchical structures of spatial data explicitly. The modeling results from bo...
The Impact of Mass Transit on Residential-Property Values
Annals of the Association of American Geographers, 1977
A major impact of mass transit on property values is the capitalization of the reductions in travel costs (travel savings) afforded by a new transportation alternative. The model of mass transit impact presented improves upon existing models in four ways. First, a statistical method is provided to hold constant the factors that might affect property values other than the transportation improvement. Second, the property value gradient to the CBD can be derived by utilizing empirical estimations. Third, two property value gradients are incorporated into the model to study impact. Finally, a "residualization" process controls multicollinearity among housing attributes. The model is used to estimate the impact of newly introduced bus routes on Denver's residential property values.
The Impact of Transit Corridors on Residential Property Values
Most of the literature on transit corridors, such as superhighways and tunnels, focuses on the positive externality of transit access (e.g., interstate access, transit station) and fails to isolate the negative externality of the corridor itself. This empirical study examines two situations: one with both access benefits and negatives, and another without the access benefit. The findings reveal that proximity to the transit corridor alone without direct access conveys a negative impact on nearby housing values.
The relationship between public transportation and home values has proven to be complex, with studies providing divergent findings. Using Victorian Valuer General Data for 2009, this paper applies a hedonic pricing approach to the Melbourne metropolitan housing market in order to estimate the impacts of proximity to a train station on residential property prices. The findings reveal that, proximity to train stations has an overall positive effect on property values. In general, all other things being equal, being located 1 km further out from a train station is associated with a 2% discount in sale price. The magnitude of this relationship is most clearly stable up to 5 kms from a train station. No dis-amenity effect on sale price for properties in close proximity to a train station was found.
2016
Transportation infrastructure in urban areas has significant impacts on socioeconomic activities, land use, and real property values. This dissertation proposes a more comprehensive theory of the positive and negative relationships between property values and transportation investments that distinguishes different effects by mode (rail vs. road), by network component (nodes vs. links), and by distance from them. It hypothesizes that