Analysis Of Effects Of Metro Line On Estate Value In Shenyang

Metro lines can improve accessibility for locations near the lines, change the location conditions of surrounding buildings and increase the value of adjacent real estate. The increase of real estate's value generated by metro lines is occupied by house owners and real estate developers. The government faces a shortage of funds for the metro construction and hardly recovers capital costs. Thus, there is a necessity to study the laws of metro value-added effects to real estate and find an effective way for the joint development between metro and real estate projects. Metro value-added effects to the residential real estate are analyzed with the case of Shenyang Metro Line 1 and some suggestions about how to provide funds for the metro construction are made.In the aspect of the qualitative research, relevant literatures are analyzed and compared. It is found that most of the domestic researches use Transport Cost Model to solve problems. Compared with TCM which relies on simple functions and may cause large errors, Hedonic Price Model has a sound theoretical basis and is internationally used. HPM is adopted in this thesis to analyze the effects of metro projects on neighboring residential real estate's value. Reasons why the real estate's value increases around the metro line are explained. Factors affecting real estate's values are described and independent variables are introduced.As for the quantitative study,344 records about real estate are collected and analyzed to find the relationship between house price and its factors. To build a comprehensive and accurate set of independent variables,26 independent variables representing the three categories-structure features, neighborhood features and location features are chosen. Based on the price index transformation, semi-logarithmic HPM is used for regression analysis and the value-added effects of Shenyang Metro Line 1 on residential real estate are studied empirically.According to the analysis of empirical results, suggestions and measures are proposed to solve the problem of the lack of funds for metro construction and operation.