IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v55y2018i15p3318-3335.html
   My bibliography  Save this article

Impact of a new subway line on housing values in Daegu, Korea: Distance from existing lines

Author

Listed:
  • Junhong Im

    (ChungNam Institute, the Republic of Korea)

  • Sung Hyo Hong

    (Kongju National University, the Republic of Korea)

Abstract

This study investigates the ex ante as well as ex post impact of a new subway line on housing values in Daegu, Korea where two lines already exist. Housing units are divided into two groups: treatment group versus comparison group based on the distance from the nearest station of the new line. Our results based on Hedonic models in difference-in-differences framework suggest that homes within 500 m from the nearest station of the new line can earn a premium of 99.7 thousand Korean Won (equivalent approximately to 96.3 US dollars) per square metre. However, such a premium from improved accessibility to public transit seems to appear mainly for the homes which are within 500 m from the new line and beyond 5 km from the nearest station of the existing lines. For the homes which are close to existing lines, proximity to the new line stations does not increase residents’ convenience remarkably because people are supposed to easily transfer between the new line and existing lines.

Suggested Citation

  • Junhong Im & Sung Hyo Hong, 2018. "Impact of a new subway line on housing values in Daegu, Korea: Distance from existing lines," Urban Studies, Urban Studies Journal Limited, vol. 55(15), pages 3318-3335, November.
    • Handle: RePEc:sae:urbstu:v:55:y:2018:i:15:p:3318-3335
    DOI: 10.1177/0042098017741412
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098017741412
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098017741412?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert Armstrong & Daniel Rodríguez, 2006. "An Evaluation of the Accessibility Benefits of Commuter Rail in Eastern Massachusetts using Spatial Hedonic Price Functions," Transportation, Springer, vol. 33(1), pages 21-43, January.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Mi Diao, 2015. "Selectivity, spatial autocorrelation and the valuation of transit accessibility," Urban Studies, Urban Studies Journal Limited, vol. 52(1), pages 159-177, January.
    4. Andersson, David Emanuel & Shyr, Oliver F. & Fu, Johnson, 2010. "Does high-speed rail accessibility influence residential property prices? Hedonic estimates from southern Taiwan," Journal of Transport Geography, Elsevier, vol. 18(1), pages 166-174.
    5. Mi Diao & Yu Qin & Tien Foo Sing, 2016. "Negative Externalities of Rail Noise and Housing Values: Evidence from the Cessation of Railway Operations in Singapore," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(4), pages 878-917, October.
    6. Jon Strand & Mette Vågnes, 2001. "The relationship between property values and railroad proximity: a study based on hedonic prices and real estate brokers' appraisals," Transportation, Springer, vol. 28(2), pages 137-156, May.
    7. 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.
    8. Landis, John & Guhathakurta, Subhrajit & Huang, William & Zhang, Ming, 1995. "Rail Transit Investments, Real Estate Values, and Land Use Change: A Comparative Analysis of Five California Rail Transit Systems," University of California Transportation Center, Working Papers qt2hf9s9sr, University of California Transportation Center.
    9. Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
    10. Claudio A. Agostini & Gastón A. Palmucci, 2008. "The Anticipated Capitalisation Effect of a New Metro Line on Housing Prices," Fiscal Studies, Institute for Fiscal Studies, vol. 29(2), pages 233-256, June.
    11. McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, 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. 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.
    2. Sebastian Brandt & Wolfgang Maennig, 2012. "The impact of rail access on condominium prices in Hamburg," Transportation, Springer, vol. 39(5), pages 997-1017, September.
    3. Chun-Chang Lee & Chi-Ming Liang & Hui-Chuan Hong, 2020. "The Impact of a Mass Rapid Transit System on Neighborhood Housing Prices: An Application of Difference-In-Difference and Spatial Econometrics," Real Estate Management and Valuation, Sciendo, vol. 28(1), pages 28-40, March.
    4. Chen, Zhenhua & Haynes, Kingsley E., 2015. "Impact of high speed rail on housing values: an observation from the Beijing–Shanghai line," Journal of Transport Geography, Elsevier, vol. 43(C), pages 91-100.
    5. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2020. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 886-914, September.
    6. Aliyu Ahmad Aliyu & Olurotimi Adebowale Kemiki & Muhammad Umar Bello, 2018. "Analysis of Current Empirical Studies on Transport Value-Added Effect and Proximate Housing Price Capture," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(12), pages 1001-1020, December.
    7. 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.
    8. 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.
    9. John Murray & Eleni Bardaka, 2022. "Evaluating the spatial and temporal distribution of beltway effects on housing prices using difference-in-differences methods," Transportation, Springer, vol. 49(6), pages 1963-1998, December.
    10. 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.
    11. Qing Shen & Simin Xu & Jiang Lin, 2018. "Effects of bus transit-oriented development (BTOD) on single-family property value in Seattle metropolitan area," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2960-2979, October.
    12. 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.
    13. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    14. Huang, Zhonghua & Du, Xuejun, 2021. "How does high-speed rail affect land value? Evidence from China," Land Use Policy, Elsevier, vol. 101(C).
    15. Oliver Shyr & David Emanuel Andersson & Jamie Wang & Taiwei Huang & Olivia Liu, 2013. "Where Do Home Buyers Pay Most for Relative Transit Accessibility? Hong Kong, Taipei and Kaohsiung Compared," Urban Studies, Urban Studies Journal Limited, vol. 50(12), pages 2553-2568, September.
    16. Yang, Linchuan & Chau, K.W. & Wang, Xu, 2019. "Are low-end housing purchasers more willing to pay for access to basic public services? Evidence from China," Research in Transportation Economics, Elsevier, vol. 76(C).
    17. Lu Zhang & Hongfei Yu & Zhongfa Zhou & Fangxin Yi & Dong Li, 2023. "National Big Data Experimental Area and the Unexpected Booming of the Housing Price in Guiyang of Guizhou Province of China," Land, MDPI, vol. 12(2), pages 1-21, February.
    18. Rodríguez, Daniel A. & Mojica, Carlos H., 2009. "Capitalization of BRT network expansions effects into prices of non-expansion areas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 560-571, June.
    19. Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2005. "Impact of railway station on Dutch residential housing market," ERSA conference papers ersa05p748, European Regional Science Association.
    20. Basso, Leonardo J. & Navarro, Matias & Silva, Hugo E., 2021. "Public transport and urban structure," Economics of Transportation, Elsevier, vol. 28(C).

    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:sae:urbstu:v:55:y:2018:i:15:p:3318-3335. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.