IDEAS home Printed from https://ideas.repec.org/a/taf/rjusxx/v22y2018i4p529-545.html
   My bibliography  Save this article

The dynamic effects of subway network expansion on housing rental prices using a repeat sales model

Author

Listed:
  • Chang-Moo Lee
  • Kang-Min Ryu
  • Keechoo Choi
  • Jin Yoo Kim

Abstract

This study investigates the effects of subway network expansion on housing rent in existing station areas in Seoul, where subway lines had been added continuously during the sample period from 2000 to 2012. Due to network expansion, some existing stations have been enjoying improvements in network accessibility while others have not. The gap in accessibility improvement between the two groups is causing differentiated levels of capitalization in nearby housing rent. In this study, a modified repeat sales model was developed to detect the inter-temporal changes of rent gradient from the affected subway stations. Based on the model, the time trends of the rent gradients for the two groups were compared. The estimation results show that the marginal value of a proximity of 100 m to a subway station was increased by about 0.6% during the 12 year period. Furthermore, it was found that the marginal value was increased by 0.8% for the more improved group of network accessibility, while only about 0.2% for the less improved. These findings confirm that network expansion of subway lines benefits subway users in existing subway areas as well as those in new station areas, and that those benefits are capitalized into housing rent.

Suggested Citation

  • Chang-Moo Lee & Kang-Min Ryu & Keechoo Choi & Jin Yoo Kim, 2018. "The dynamic effects of subway network expansion on housing rental prices using a repeat sales model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 22(4), pages 529-545, October.
    • Handle: RePEc:taf:rjusxx:v:22:y:2018:i:4:p:529-545
    DOI: 10.1080/12265934.2018.1487331
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/12265934.2018.1487331
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/12265934.2018.1487331?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
    ---><---

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Xueli & Jiang, Chunxia & Wang, Feng & Yao, Shujie, 2021. "The impact of high-speed railway on urban housing prices in China: A network accessibility perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 84-99.
    2. Lee, Hung-Wei & Lin, Che-Chun & Tsai, I-Chun, 2023. "Another application of call options: Explaining the divergence between the housing market and the rental market," Finance Research Letters, Elsevier, vol. 53(C).
    3. Yuting Wu & Hongyan Wen & Meichen Fu, 2024. "A Review of Research on the Value Evaluation of Urban Underground Space," Land, MDPI, vol. 13(4), pages 1-28, April.
    4. Jean-Philippe Meloche & Vincent Trotignon & François Vaillancourt, 2021. "Densification ou prolongement des réseaux de transport structurants ? Une recension des écrits sur les coûts et les bénéfices attendus," CIRANO Project Reports 2020rp-28, CIRANO.

    More about this item

    Statistics

    Access and download statistics

    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:taf:rjusxx:v:22:y:2018:i:4:p:529-545. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjus20 .

    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.