The Time Effect Of Urban Rail Transit On Housing Price

The construction of urban rail transit enhance the convenience of traffic around the station,and for business along the line attract traffic,and hence increases the housing prices for the surrounding properties.It is important to consider the externalities of urban rail transit when evaluating the property prices around the railway stations.This paper uses time dummy variable method to study the time effect of urban rail transit on housing prices.Because there are many factors influencing real estate prices,it is difficult to include all the influencing factors into the model through the feature variable,this study adopts the paired difference method to match the reference price to control the potential missing variables.This study collects housing data around the stations of Guangzhou Metro Line 5.The housing data that within 1km away from station is selected as the treatment group,while the data with 2km away from the station is the control group.The differencing process is adopted to eliminate the unobserved components of housing price.The empirical results show that:(1)Guangzhou Metro Line 5 in the early construction have the lowest valueadded effect on house prices;(2)the value-added effect of housing price tends to flat in the early operation of Guangzhou Metro Line 5;(3)Guangzhou Metro Line 5 in operating period has a greater value-added effect of housing prices than the construction period;(4)the main reason of the housing price along the line rise is the opened of the Guangzhou Metro Line 5.The results of this study will provide a reference for the assessment of residential property premium along the stations,and also help local governments,real estate developers and property buyers to assess the value of real estate.