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The impact of Seoul's subway Line 5 on residential property values

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  • Bae, Chang-Hee Christine
  • Jun, Myung-Jin
  • Park, Hyeon

Abstract

This research investigates the impact of the construction of a new subway line (Line 5) in Seoul on nearby residential property values. A hedonic pricing model shows that distance from a Line 5 subway station had a statistically significant effect on residential prices only prior to the line's opening. This is consistent with the anticipatory effect observed in other studies. Moreover, accessibility to transit had, in general, less of an impact on house prices than other variables such as the size of the unit, the quality of the school district, proximity to the high-status Kangnam subcenter, and possibly accessibility to recreational resources.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:trapol:v:10:y:2003:i:2:p:85-94
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    References listed on IDEAS

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    Cited by:

    1. Yang, Jiawen & Chen, Junxian & Le, Xiaohui & Zhang, Qin, 2016. "Density-oriented versus development-oriented transit investment: Decoding metro station location selection in Shenzhen," Transport Policy, Elsevier, vol. 51(C), pages 93-102.
    2. Vifill Karlsson, 2011. "The Relationship of Housing Prices and Transportation Improvements: Location and Marginal Impact," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 223-241.
    3. Cao, Xinyu (Jason) & Porter-Nelson, Dean, 2016. "Real estate development in anticipation of the Green Line light rail transit in St. Paul," Transport Policy, Elsevier, vol. 51(C), pages 24-32.
    4. Karen Mayor & Seán Lyons & David Duffy & Richard S. J. Tol, 2012. "A Hedonic Analysis of the Value of Rail Transport in the Greater Dublin Area," Journal of Transport Economics and Policy, University of Bath, vol. 46(2), pages 239-261, May.
    5. Zhang, Ming & Wang, Lanlan, 2013. "The impacts of mass transit on land development in China: The case of Beijing," Research in Transportation Economics, Elsevier, vol. 40(1), pages 124-133.
    6. Marcin Torzewski, 2016. "The analysis of the impact of the Warsaw metro stations location on residential property prices in Ursynów district in Warsaw (Analiza wplywu lokalizacji stacji metra warszawskiego na ceny mieszkan na," Research Reports, University of Warsaw, Faculty of Management, vol. 1(20), pages 145-155.
    7. Valeriia Budiakivska & Luca Casolaro, 2018. "Please in my back yard: the private and public benefits of a new tram line in Florence," Temi di discussione (Economic working papers) 1161, Bank of Italy, Economic Research and International Relations Area.
    8. Vifill KARLSSON, "undated". "The Relationship of House Price and Transportation Improvements: A General Case for Iceland; a Large but Thinly Populated European Country," Regional and Urban Modeling 284100024, EcoMod.
    9. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2017. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," NBER Working Papers 23326, National Bureau of Economic Research, Inc.
    10. Zhang, Jianhua & Xu, Xiaoming & Hong, Liu & Wang, Shuliang & Fei, Qi, 2011. "Networked analysis of the Shanghai subway network, in China," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(23), pages 4562-4570.
    11. Mohammad, Sara I. & Graham, Daniel J. & Melo, Patricia C. & Anderson, Richard J., 2013. "A meta-analysis of the impact of rail projects on land and property values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 158-170.
    12. 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.
    13. repec:eee:regeco:v:67:y:2017:i:c:p:64-77 is not listed on IDEAS
    14. 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.
    15. Efthymiou, D. & Antoniou, C., 2013. "How do transport infrastructure and policies affect house prices and rents? Evidence from Athens, Greece," Transportation Research Part A: Policy and Practice, Elsevier, vol. 52(C), pages 1-22.
    16. Vifill KARLSSON, "undated". "Modern Industrial Structure and Development of House PriceÂ’s Spatial Disparity: A General Case for Iceland; a Large but Thinly Populated European Country," Regional and Urban Modeling 284100023, EcoMod.

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