The impacts of mass transit on land development in China: The case of Beijing

Land development impacts of mass transit have long been studied in the developed economies. Yet relatively little is known by the outside world about the Chinese experience due to China's rather short history in the development of modern mass transit and land/property market. This paper attempts to fill the gap by presenting evidence from China, with a detailed case study of Beijing. Selecting three newly built suburban transit lines in Beijing, the study examined land development context and estimated hedonic housing price models to measure the proximity premiums associated with these three lines. The empirical evidence in Beijing, one of the first tier mass transit cities in China, shows that investments in mass transit can have significant and positive impacts on land development. Properties with transit proximity enjoy sizable price or value premiums. The study also confirms the international experience: transit impacts on land development are unlikely to occur automatically; they rely greatly on supportive regional and site conditions. Integrated planning and design for mass transit and land development are critical to expand and maximize the return of transit investments.