Impacts of rail transit access on land and housing values in China: a quantitative synthesis

ABSTRACT

Rail transit investment has been viewed as a prominent policy instrument for local and regional development. However, little is known about to what extent the theorised changes in land and housing values arising from rail transit access can be substantiated by evidence in a large developing country context. This paper presents a quantitative review of empirical studies that analysed the impacts of rail transit access on land and housing values in China. We review empirical analyses in 67 studies from 1997 to 2018 for which we encode quantitative results along with a range of theoretically combinations of spatially contextual characteristics, data and methodological-design characteristics. The results show that there are significant variations in the size estimates of effects of rail transit access across studies. Such variations are associated with rail project types, data and methodological designs. Our study provides the insights on what has already been known and what needs to be known on evaluating real estate consequences of rail transit improvements in developing countries.     

The impact of urban rail transit on commercial property value: New evidence from Wuhan,China

The interaction between rail transit and the urban property market is a vital foundation for planning transit-based policy such as Value Capture and Transit Oriented Development (TOD). Yet only few studies have reported the impact of transit access on commercial property value. This paper presents empirical evidence from Wuhan, China, to enrich the knowledge in the subject area. Spatial autoregressive models were employed to estimate the commercial value capture, based on 676 observations along Wuhan’s metro rail line through the main business districts. Value appreciation was discovered within the 400 m radius of road network distance from Metro stations. The transit access premiums present as two tiers: 16.7% for the 0–100 m core area and approximately 8.0% within the 100–400 m radius. The result demonstrates the potential benefit of adopting value capture and optimising TOD planning to support sustainable urban rail transit investment. Amid rapid urbanisation in China, the evidence reported here could help better inform cities, across the developing world and beyond, of the benefits of adopting rail transit-based policy.     

A simultaneous route-level transit patronage model: demand,supply, and inter-route relationship

In this paper we present a route-level patronage model that incorporates transit demand, supply and inter-route effects in a simultaneous system. The model is estimated at the route-segment level by time of day and direction. The results show strong simultaneity among transit demand, supply and competing routes. Transit ridership is affected by the level of service, which in turn is determined by current demand and ridership in the previous year. The model demonstrates that a service improvement has a twofold impact on ridership; it increases ridership on the route with service changes, but it also reduces the ridership on competing routes so that the net ridership change is small. The model is thus useful for both system-level analysis and route-level service planning.     

Estimating multimodal transit ridership with a varying fare structure

This paper studies public transport demand by estimating a system of equations for multimodal transit systems where different modes may act competitively or cooperatively. Using data from Athens, Greece, we explicitly correct for higher-order serial correlation in the error terms and investigate two, largely overlooked, questions in the transit literature; first, whether a varying fare structure in a multimodal transit system affects demand and, second, what the determinants of ticket versus travelcard sales may be. Model estimation results suggest that the effect of fare type on ridership levels in a multimodal system varies by mode and by relative ticket to travelcard prices. Further, regardless of competition or cooperation between modes, fare increases will have limited effects on ridership, but the magnitude of these effects does depend on the relative ticket to travelcard prices. Finally, incorrectly assuming serial independence for the error terms during model estimation could yield upward or downward biased parameters and hence result in incorrect inferences and policy recommendations.     

Highway alignment optimization through feasible gates

An efficient optimization approach, called feasible gate (FG), is developed to enhance the computation efficiency and solution quality of the previously developed highway alignment optimization (HAO) model. This approach seeks to realistically represent various user preferences and environmentally sensitive areas and consider them along with geometric design constraints in the optimization process. This is done by avoiding the generation of infeasible solutions that violate various constraints and thus focusing the search on the feasible solutions. The proposed method is simple, but improves significantly the model's computation time and solution quality. Such improvements are demonstrated with two test examples from a real road project.