IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v18y2011i1p102-116.html
   My bibliography  Save this article

Bus rapid transit impacts on land uses and land values in Seoul, Korea

Author

Listed:
  • Cervero, Robert
  • Kang, Chang Deok

Abstract

Bus rapid transit (BRT) has gained popularity as a cost-effective alternative to urban rail investments; however, relatively little is known about its impacts on land-use changes and land values. This paper examines the land-market effects of converting regular bus operations to median-lane bus services in Seoul, Korea, one of the densest, most congested cities in the world. Multilevel models reveal BRT improvements prompted property owners to convert single-family residences to higher density apartments and condominiums. Land price premiums of up to 10% were estimated for residences within 300 m of BRT stops and more than 25% for retail and other non-residential uses over a smaller impact zone of 150 m. The research findings underscore the importance of introducing zoning and other land regulatory changes prior to the initiation of BRT improvements as well as applying value-capture tools to help finance investments and redress inequities.

Suggested Citation

  • Cervero, Robert & Kang, Chang Deok, 2011. "Bus rapid transit impacts on land uses and land values in Seoul, Korea," Transport Policy, Elsevier, vol. 18(1), pages 102-116, January.
    • Handle: RePEc:eee:trapol:v:18:y:2011:i:1:p:102-116
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967-070X(10)00082-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Voith Richard, 1993. "Changing Capitalization of CBD-Oriented Transportation Systems: Evidence from Philadelphia, 1970-1988," Journal of Urban Economics, Elsevier, vol. 33(3), pages 361-376, May.
    2. Estupiñán, Nicolás & Rodri­guez, Daniel A., 2008. "The relationship between urban form and station boardings for Bogotá's BRT," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(2), pages 296-306, February.
    3. Bae, Chang-Hee Christine & Jun, Myung-Jin & Park, Hyeon, 2003. "The impact of Seoul's subway Line 5 on residential property values," Transport Policy, Elsevier, vol. 10(2), pages 85-94, April.
    4. Daniel P. McMillen & John McDonald, 2004. "Reaction of House Prices to a New Rapid Transit Line: Chicago's Midway Line, 1983–1999," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 463-486, September.
    5. Timothy J. Bartik, 2008. "Measuring the Benefits of Amenity Improvements in Hedonic Price Models," Book chapters authored by Upjohn Institute researchers, in: Richard E. Just & Darrell L. Hueth & Andrew Schmitz (ed.),Applied Welfare Economics, pages 643-654, W.E. Upjohn Institute for Employment Research.
    6. Boarnet, Marlon G & Chalermpong, Saksith, 2003. "New Highways, House Prices, and Urban Development: A Case Study of Toll Roads in Orange County, CA," University of California Transportation Center, Working Papers qt2zd554cs, University of California Transportation Center.
    7. Dean H. Gatzlaff & Marc T. Smith, 1993. "The Impact of the Miami Metrorail on the Value of Residences near Station Locations," Land Economics, University of Wisconsin Press, vol. 69(1), pages 54-66.
    8. Patricio E. Pérez & Francisco J. Martínez & Juan de Dios Ortúzar, 2003. "Microeconomic Formulation and Estimation of a Residential Location Choice Model: Implications for the Value of Time," Journal of Regional Science, Wiley Blackwell, vol. 43(4), pages 771-789, November.
    9. Cervero, Robert & Landis, John, 1997. "Twenty years of the Bay Area Rapid Transit system: Land use and development impacts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(4), pages 309-333, July.
    10. Bin Zhou & Kara Kockelman, 2008. "Neighborhood impacts on land use change: a multinomial logit model of spatial relationships," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 321-340, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    2. Cervero, Robert & Kang, Chang Deok, 2009. "Bus Rapid Transit Impacts on Land Uses and Land Values in Seoul, Korea," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt4px4n55x, Institute of Transportation Studies, UC Berkeley.
    3. Mathur, Shishir, 2019. "An evaluative framework for examining the use of land value capture to fund public transportation projects," Land Use Policy, Elsevier, vol. 86(C), pages 357-364.
    4. Haizhen Wen & Zaiyuan Gui & Chuanhao Tian & Yue Xiao & Li Fang, 2018. "Subway Opening, Traffic Accessibility, and Housing Prices: A Quantile Hedonic Analysis in Hangzhou, China," Sustainability, MDPI, vol. 10(7), pages 1-23, June.
    5. Mejia-Dorantes, Lucia & Lucas, Karen, 2014. "Public transport investment and local regeneration: A comparison of London׳s Jubilee Line Extension and the Madrid Metrosur," Transport Policy, Elsevier, vol. 35(C), pages 241-252.
    6. He, Sylvia Y., 2020. "Regional impact of rail network accessibility on residential property price: Modelling spatial heterogeneous capitalisation effects in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 244-263.
    7. Helen X. H. Bao & Doris Ka Chuen Mok, 2020. "A Link between East and West: How the Guangzhou-Shenzhen-Hong Kong Express Rail Link Affects Property Prices in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 993-1021.
    8. Mathur, Shishir, 2020. "Impact of transit stations on house prices across entire price spectrum: A quantile regression approach," Land Use Policy, Elsevier, vol. 99(C).
    9. Diao, Mi & Leonard, Delon & Sing, Tien Foo, 2017. "Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 64-77.
    10. Cervero, Robert, 2004. "Effects of Light and Commuter Rail Transit on Land Prices: Experiences in San Diego County," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 43(1).
    11. Mathur, Shishir & Ferrell, Christopher, 2013. "Measuring the impact of sub-urban transit-oriented developments on single-family home values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 42-55.
    12. Yan, Sisi & Delmelle, Eric & Duncan, Michael, 2012. "The impact of a new light rail system on single-family property values in Charlotte, North Carolina," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 5(2), pages 60-67.
    13. Dubé, Jean & Rosiers, François Des & Thériault, Marius & Dib, Patricia, 2011. "Economic impact of a supply change in mass transit in urban areas: A Canadian example," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 46-62, January.
    14. Sebastian Brandt & Wolfgang Maennig, 2012. "The impact of rail access on condominium prices in Hamburg," Transportation, Springer, vol. 39(5), pages 997-1017, September.
    15. Ahlfeldt Gabriel M., 2011. "The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?," German Economic Review, De Gruyter, vol. 12(3), pages 312-335, August.
    16. Shengxiao Li & Luoye Chen & Pengjun Zhao, 2019. "The impact of metro services on housing prices: a case study from Beijing," Transportation, Springer, vol. 46(4), pages 1291-1317, August.
    17. Dubé, Jean & Thériault, Marius & Des Rosiers, François, 2013. "Commuter rail accessibility and house values: The case of the Montreal South Shore, Canada, 1992–2009," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 49-66.
    18. Xiyan (Jamie) Wang, 2017. "Subway capitalization effect in Beijing: Theory and evidence on the variation of the subway proximity premium," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 495-518, August.
    19. Zachary T. Keeler & Heather M. Stephens, 2023. "The capitalization of metro rail access in urban housing markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(3), pages 686-720, May.
    20. Pasha, Obed & Wyczalkowski, Chris & Sohrabian, Dro & Lendel, Iryna, 2020. "Transit effects on poverty, employment, and rent in Cuyahoga County, Ohio," Transport Policy, Elsevier, vol. 88(C), pages 33-41.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:18:y:2011:i:1:p:102-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.