GEOGRAPHICAL RESEARCH ›› 2010, Vol. 29 ›› Issue (5): 801-810.doi: 10.11821/yj2010050004

• Economy and Regional Development • Previous Articles     Next Articles

The spacial and temporal effect on property value increment with the development of urban rapid rail transit:An empirical research

NIE Chong1, WEN Hai-zhen1, FAN Xiao-feng2   

  1. 1. Center for Real Estate Study, Zhejiang University, Hangzhou 310027, China;
    2. Shenzhen Tonge Group Co Ltd, Shenzhen 518034, China
  • Received:2009-06-06 Revised:2009-10-30 Online:2010-05-20 Published:2010-05-20

Abstract:

How to evaluate the incremental effect on the value of surrounding property with the development of Urban Rapid Rail Transit (URRT) is a problem to the practical and theoretical society. With the case of Shenzhen Metro Line Phase 1, this paper builds a hedonic price model including 3 characteristics: location, neighborhood and structure. Using semi-log function and OLS, this paper quantitatively analyses the spacial and temporal effect on surrounding property value increment resulted in the development of Shenzhen Metro Line Phase 1 from 2001 to 2007, which includes the construction period and the operational period. The empirical results identify that URRT has a positive spacial effect on the property value within a radius of 700 m around stations. The property value increment within the radius of 700 m and 100 m are 19.5% and 37.8% respectively. In view of temporal effect, URRT has a negative effect on the property value increment in the construction period, but in the operational period it turns to positive, especially in the second year. Moreover, the property value increment by the development of URRT is larger in operational period than that in construction period. From 2004 to 2007, the incremental effect on property value increased year by year.

Key words: URRT, property value increment, Hedonic Price Model