Premium
Value‐added effects of transit‐oriented development: The impact of urban rail on commercial property values with consideration of spatial heterogeneity
Author(s) -
Yu Haitao,
Pang Hao,
Zhang Ming
Publication year - 2018
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12304
Subject(s) - hedonic pricing , property value , transit oriented development , transit (satellite) , central business district , value (mathematics) , econometrics , business , price premium , regression analysis , geographically weighted regression , transport engineering , agricultural economics , economics , mathematics , statistics , finance , microeconomics , public transport , willingness to pay , engineering , real estate
This study investigates the impact of the Austin MetroRail on commercial property values. Spatial Durbin models (SDM) suggest a modest price premium associated with rail transit across the study area. A premium gradient is also presented at different distance tiers from stations. When it comes to transit‐oriented development (TOD), a synergistic effect in enlarging the premium is found: with additional $9.0/ft 2 , $8.6/ft 2 and $5.3/ft 2 at 0.25 mi, 0.25–0.5 mi and 0.5–0.75 mi, respectively. Furthermore, geographically weighted regression shows the premium is significantly higher in central business district (CBD) and TOD areas. Such recognition of the heterogeneous price effect is of use in the design of project financing and TOD strategies.