The Impact Of Rail Transit On Residential Property Values: A Hedonic Model Approach

Urban Rapid Rail Transit impacts on the development of urban land use patterns, layout and scale directly. From 1970s, International research on the effect of Rapid Rail Transit on the residential value has been related fields one of the topics at the forefront. Based on the summary of relevant research fields, from the perspective of the pros and cons of two dialectical analysis of the mechanism of the Rapid Rail Transit on the residential value, Hedonic model is selected to explore the spacial and time effects on the surrounding residential value. Research is focused on building quantitative analysis model with cross-term in Hedonic model to analyse different segments of the market. It focuses in perspective Tianjin Metro Line 1 to serve as an empirical analysis of the object, gathering related data of around 49 residential projects. The research results of spacial effect show that Tianjin Metro Line 1 overall impact on the site radius of the site surrounding 0.8~1.0km. The residential value within 0.3km radius from the site, 0.3~0.5 km, 0.5~0.8 km, 0.8~1.0km is higher than than the residential value outside the region of the 1st line radius of influence as 559 yuan/m2, 292 yuan/m2, 150 yuan/m2, 97 yuan/m2. Within the average range of 0.8~1.0km and 0.5~0.8km radius of influence the value-added is 6.2% and 7.7%. The greatest impact value is the residential within 0.3km from the subway site, with the value-added range of 9.44%. For the time effect, removing other residential features and the residential market supply and demand change during 2004~2007, the opening of Tianjin Metro Line 1 improved the the residential value in the radius of influence obviously. Residential market has a good response to"opening"event of Metro Line 1. Different segments of the market show diffetent spacial effect, the farther distance from the CBD, the greater value of metro site. As increaseing average neighborhood income (domestic spending), and the improvement of the residential grade, the effect of subway stations to the value-added of residential prices is downward trend, and low-income neighborhood are more willing to live in close distance from the subway station where may pay higher prices. On basis of the research, the implementation of joint development strategy of Rapid Rail Transit and Real Estate, as well as a public Transport-Oriented Development patterns in urdan construction is presented.