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

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  • 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
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    References listed on IDEAS

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    Citations

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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. Rodriguez, Daniel A. & Vergel-Tovar, Erik & Camargo, William F., 2016. "Land development impacts of BRT in a sample of stops in Quito and Bogotá," Transport Policy, Elsevier, vol. 51(C), pages 4-14.
    3. Guerra, Erick & Cervero, Robert & Tischler, Daniel, 2011. "The Half-Mile Circle: Does It Best Represent Transit Station Catchments?," University of California Transportation Center, Working Papers qt68r764df, University of California Transportation Center.
    4. repec:eee:retrec:v:60:y:2016:i:c:p:54-61 is not listed on IDEAS
    5. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    6. Guerra, Erick Strom, 2013. "The New Suburbs: Evolving travel behavior, the built environment, and subway investments in Mexico City," University of California Transportation Center, Working Papers qt88t7k9p5, University of California Transportation Center.
    7. Deng, Taotao & Nelson, John D., 2013. "Bus Rapid Transit implementation in Beijing: An evaluation of performance and impacts," Research in Transportation Economics, Elsevier, vol. 39(1), pages 108-113.
    8. repec:eee:touman:v:56:y:2016:i:c:p:40-51 is not listed on IDEAS
    9. Antonio Avendaño & Hernán Enríquez & Santiago Olarte, 2014. "Estructura urbana y precios del suelo en Bogotá," REVISTA ECONOMÍA & REGIÓN, UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR, vol. 8(2), pages 49-80, December.
    10. McIntosh, James & Trubka, Roman & Newman, Peter, 2014. "Can value capture work in a car dependent city? Willingness to pay for transit access in Perth, Western Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 320-339.
    11. 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.
    12. Chung, Younshik & Kim, Hyun, 2015. "Deep subterranean railway system: Acceptability assessment of the public discourse in the Seoul Metropolitan Area of South Korea," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 82-94.
    13. Mulley, Corinne & Tsai, Chi-Hong (Patrick), 2016. "When and how much does new transport infrastructure add to property values? Evidence from the bus rapid transit system in Sydney, Australia," Transport Policy, Elsevier, vol. 51(C), pages 15-23.
    14. Guerra, Erick & Cervero, Robert & Tischler, Daniel, 2011. "The Half-Mile Circle: Does It Represent Transit Station Catchments?," University of California Transportation Center, Working Papers qt0d84c2f4, University of California Transportation Center.
    15. Papon, Francis & Nguyen-Luong, Dany & Boucq, Elise, 2015. "Should any new light rail line provide real estate gains, or not? The case of the T3 line in Paris," Research in Transportation Economics, Elsevier, vol. 49(C), pages 43-54.
    16. De Vos, Jonas & Van Acker, Veronique & Witlox, Frank, 2014. "The influence of attitudes on Transit-Oriented Development: An explorative analysis," Transport Policy, Elsevier, vol. 35(C), pages 326-329.
    17. Cervero, Robert & Dai, Danielle, 2014. "BRT TOD: Leveraging transit oriented development with bus rapid transit investments," Transport Policy, Elsevier, vol. 36(C), pages 127-138.
    18. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.

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