Abstract
As a sign of city development and prosperity, subway is not only an important public transportation for residents’ travelling, but also an engine to real estate market and business booming around the stations. Moreover, the positive externalities brought by the subway will also be capitalized into the nearby properties. In this paper, the micro-data of new commodity housing units in Chengdu was used to estimate the premium effect during subway construction (Line 1 and 2) from year 2006 to the first half of year 2010. The empirical results suggest that the spatial and temporal housing premium are significant, and that the average home price is 7–14 % higher within 1.5 km around the subway station than outside the stations. Based on above estimation, the premium of residential land is more than 5 billion U.S dollars during the period, which can cover the subway construction cost (2.86 billion U.S dollars). The empirical results also provide some policy implication for urban subway construction and local public finance.
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Acknowledgments
This research is supported in part by the National Natural Science Foundation of China (Grant No. 70973065), Major Project of National Social Science Foundation of China (Grant No. 09&ZD042) and Tsinghua University Initiative Scientific Research Program.
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Sun, C., Zheng, S., Han, R. (2014). The Effects of Subway Construction on Housing Premium: A Micro-data Analysis in Chengdu’s Housing Market. In: Wang, J., Ding, Z., Zou, L., Zuo, J. (eds) Proceedings of the 17th International Symposium on Advancement of Construction Management and Real Estate. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35548-6_46
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DOI: https://doi.org/10.1007/978-3-642-35548-6_46
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