Interaction of Public Transport Accessibility and Residential Property Values Using Smart Card Data

Abstract

This study examines the relationship between residential property values and accessibility indicators derived from transit smart card data. The use of smart card data to estimate accessibility indicators for explaining the housing market has not yet been explored in the literature. Hence, this paper employs information from Brisbane, Australia’s “go card” and corresponding property data to develop residential property hedonic pricing models using an ordinary least square (OLS) model, a spatial lagged model (SL), a spatial error model (SE), and a geographically weighted regression (GWR). Due to the systematic coincidence between location and price similarities, these spatial econometric models yield superior goodness-of-fit over the OLS model. Using the proposed definition of public transit accessibility in this study, it was found that properties located in well-connected, well-serviced, and accessible locations generally experience premiums in their values. The results indicate that there is value added to the property market from the public investment in public transport services and infrastructure, which supports the adoption of transit funding mechanisms, such as value-capture taxes. Furthermore, the analysis of spatial interactions between transport accessibility and the housing market could be of use to policy makers to ensure a just distribution of capital investment in future infrastructure projects.

Systematic Literature Review on Smart Mobility: A Framework for Future “Quantitative” Developments

“…The connectivity of the territory is expressed by the number of people and by the extent of the areas served in the basin of attraction of the stops and by the connections available between locations. Recognizing the importance of these elements, some studies focus, for example, on the analysis of the territories that suffer from lack of accessibility, depopulation and which are poorly connected (Mazzarino and Rubini 2019), or on the relationship that exists between the values of ownership residential and accessibility indicators (Siripanich, Rashidi, and Moylan 2019) in order to promote and evaluate innovative and efficient transport solutions.…”

The Research Development of Hedonic Price Model-Based Real Estate Appraisal in the Era of Big Data

“…If so, the research focuses on internet search behavior data, real estate news, and macro indicators, and it does not involve other big data types. Third, if the purpose of a given study is to evaluate the value of a property or draw a global housing price map of a key city [33,42,58,59,61,64,71,73,80,83], the goal would be to generate more accurate results than would be generated by traditional methods. (3) More types of big data that can reflect housing structural, locational, and neighborhood-related attributes are introduced into the valuation models to achieve this goal.…”

“…However, the data collection in traditional statistical methods is performed via a single source, which predominantly comprises transaction information recorded by real estate intermediary companies or official records and leads to the problems of small data samples and limited researchable features [26,31]. The manual survey method also has some limitations, such as high cost and inapplicability to large-scale research [32][33][34].…”

“…By calculating accessibility indicators, the relationship between these and housing prices can be explored. For example, Siripanich et al, (2019) linked this emerging data source with the HPM, estimated the accessibility index through SCD, and incorporated it into the HPM [33]. They used big data to reveal the performance of nearby transit nodes, which improved the interpretation ability of the model.…”

Building Sustainable and Connected Communities by Addressing Public Transportation’s First-Mile Problem: Insights from a Stated Preference Survey in El Paso, Texas

“…Studies highlight that transit use promotes an active lifestyle, helps combat obesity and other diseases, and fosters a sense of community [2,[14][15][16]. Furthermore, empirical studies consistently report that public transit infrastructure attracts businesses and increases commercial and residential property values by improving accessibility and reducing transportation expenses [17][18][19].…”