How does the extension of existing transport infrastructure affect land value? A case study of the Tyne and Wear Light Transit Metro system

Pearson, Jonathan; Muldoon‐Smith, Kevin; Liu, Junxiao; Robson, Simon

doi:10.1016/j.landusepol.2021.105811

Cited by 7 publications

(1 citation statement)

References 31 publications

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“…With improved accessibility, land and property near transit stations may receive a higher valuation from buyers compared to similar land and property located at a further distance. Evidently, a 2016 study by the Council for the Preservation of Rural England (CPRE), cited by Pearson et al (2022), found that landowners profited an estimated £9.3 billion of the £12.3 billion in land value increases generated by infrastructure improvements. According to Hong and Ingram (2012), there is a consensus among scholars that the cost of public investment should be recovered, at least in part, through the financial benefits that the investment generates.…”

Section: Introductionmentioning

confidence: 99%

Estimating Value Uplift From Transit Investments in Subang Jaya, Selangor Using Difference-in-Difference Method

Dziauddin

2023

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It is generally believed that public transport investment such as urban rail transit systems can improve accessibility, particularly in larger and denser metropolitan areas. The improved accessibility provided by urban rail transit systems can drive up the value of surrounding land or property due to increased buyer demand. Based on this general belief, the study estimates the impact of the Kelana Jaya LRT line extension on residential property values in Subang Jaya, Selangor. Using Difference-in-Difference (DID) method with transaction-based data of 1,006 terraced properties, it is estimated that a typical terraced unit located within 0.8 km of the nearest LRT station and be sold during the construction phase of the project and after the system became operational would fetch a respective premium of approximately 4.7% and 5.3%, or RM31,490 and RM35,510 on average. It is also estimated that the overall impact on the price of terraced properties located within 0.8 km from the nearest LRT station in Subang Jaya, amounts to nearly RM11.6 million. An interesting accounting implication arising from this potential revenue is that it could provide a significant financial incentive to fully or partially fund urban rail transit projects in the Greater Kuala Lumpur area.

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Section: Introductionmentioning

confidence: 99%