Accessibility and Residential Land Value Uplift: Identifying Spatial Variations in the Accessibility Impacts of a Bus Transitway

Abstract

New public transport investment can improve accessibility for existing and new users of the urban transport network and this can lead to land value uplift with uplift benefits being distributed in relation to the proximity of the location of the property to the infrastructure. This paper quantifies land value uplift and its spatial distribution for accessibility to different destinations for residential properties around a new-build Liverpool Parramatta transitway for buses in a suburban area of south-west Sydney, Australia. Geographically weighted regression (GWR) is used to take account of spatial dependency in the estimation process with the results being presented in map form. Results indicate that property prices are mainly determined by the property’s internal features and the neighbourhood effects, but accessibility by car and accessibility to employment along the transitway also contribute non-marginally. The GWR local model shows that accessibility varies significantly over geographical space demonstrating the advantages of this approach.

Get full access to this article

View all access options for this article.

References

Adair

McGreal

Smyth

Cooper

Ryley

(2000) House prices and accessibility: the testing of relationships within the Belfast urban area, Housing Studies, 15, pp. 699–716.

Akaike

(1973) Information theory and an extension of the maximum likelihood principle, in: Petrov

Csaki

(Eds) 2nd Symposium on Information Theory, pp. 267–281. Budapest: Akademiai Kiado.

Alonso

(1964) Location and Land Use. Cambridge, MA: Harvard University Press.

Anselin

(1999) Spatial Econometrics. School of Social Sciences, University of Texas at Dallas.

Armstrong

R. J.

Rodriguez

D. A.

(2006) An evaluation of the accessibility benefits of commuter rail in Eastern Massachusetts using spatial hedonic price functions, Transportation, 33, pp. 21–43.

Blainey

S. P.

(2009) Trip end models of local rail demand in England and Wales, Journal of Transport Geography, 18(1), pp. 153–165.

BTS (Bureau of Transport Statistics, NSW Government) (2011) 2009/2010 household travel survey: summary report 2011.

Cervero

Duncan

(2001) Rail transit’s value-added: effects of proximity to light and commuter rail transit on commercial land values in Sanat Clara County, California. National Association of Realtors/Urban Land Institute, Washington, DC.

Cervero

Duncan

(2002a) Land value impacts of rail transit services in Los Angeles County. National Association of Realtors/Urban Land Institute, Washington, DC.

10.

Cervero

Duncan

(2002b) Land Value Impacts of Rail Transit Services in San Diego County. National Association of Realtors/Urban Land Institute, Washington, DC.

11.

Cervero

Kang

C. D.

(2011) Bus rapid transit impacts on land uses and land values in Seoul, Korea, Transport Policy, 18, pp. 102–116.

12.

Cervero

Landis

(1993) Assessing the impacts of urban rail transit on local real estate markets using quasi-experimental comparisons, Transportation Research Part A, 27, pp. 13–22.

13.

Cervero

Landis

(1997) Twenty years of the Bay Area rapid transit system: land use and development impacts, Transportation Research Part A, 31(4), pp. 309–333.

14.

Deng

Nelson

J. D.

(2010) The impact of bus rapid transit on land development: a case study of Beijing, China, World Academy of Science, Engineering and Technology, 66, pp. 1196–1206.

15.

Mulley

(2006) Relationship between transport accessibility and land value: a local model approach with geographically weighted regression, Transportation Research Record, 1977, pp. 197–205.

16.

Mulley

(2007a) The short-term land value impacts of urban rail transit: quantitative evidence from Sunderland, UK, Land Use Policy, 24(1), pp. 223–233.

17.

Mulley

(2007b) Transport accessibility and land value: a case study of Tyne and Wear. Research Paper Series No. 7(3), Royal Institution of Chartered Surveyors (www.rics.org).

18.

Mulley

(2012) Understanding spatial variations in the impact of light rail infrastructure on land value using geographically weighted regression, Journal of Transport and Land Use, 5(2), pp. 46–59.

19.

Dubé

Des Rosiers

Theriault

Dib

(2011) Economic impact of a supply change in mass transit in urban areas: a Canadian example, Transportation Research Part A, 45, pp. 46–62.

20.

Fotheringham

A. S.

Brunsdon

Charlton

M. E.

(2002) Geographically Weighted Regression: The Analysis of Spatially Varying Relationships. Chichester: Wiley.

21.

Gospodini

(2005) Urban development, redevelopment and regeneration encouraged by transport infrastructure projects: the case study of 12 European cities, European Planning Studies, 13(7), pp. 1083–1111.

22.

Handy

S. L.

Niemeier

D. A.

(1997) Measuring accessibility: an exploration of issues and alternatives, Environment and Planning A, 29, pp. 1175–1194.

23.

Horner

M. W.

Mefford

J. N.

(2005) GIS-based strategies for measuring worker accessibility to job opportunities: the case of bus transit. Paper presented at the TRB 84th Annual Meeting, Washington, DC.

24.

Huang

(1996) The land-use impacts of urban rail systems, Journal of Planning Literature, 11(1), pp. 17–30.

25.

Jun

M. J.

(2012) Redistributive effects of bus rapid transit (BRT) on development patterns and property values in Seoul, Korea, Transport Policy 19, pp. 85–92.

26.

Knight

R. L.

Trygg

L. L.

(1977) Evidence of land use impacts of rapid transit systems, Transportation, 6, pp. 231–247.

27.

Landis

Guhathakurta

Zhang

(1994) Capitalization of transit investments into single-family home prices. Transportation Center, The University of California.

28.

Morris

J. M.

Dumble

Wigan

(1979) Accessibility indicators for transport planning, Transportation Research Part A, 13(2), pp. 91–109.

29.

Munoz-Raskin

(2010) Walking accessibility to bus rapid transit: does it affect property values? The case of Bogota, Colombia, Transport Policy, 17(2), pp. 72–84.

30.

Muth

R. F.

(1969) Cities and Housing. Chicago, IL: University of Chicago Press.

31.

Newman

P. W. G.

Kenworthy

J. R.

(1996) The land use–transport connection: an overview, Land Use Policy, 13(1), pp. 1–22.

32.

NSW (New South Wales) Audit Office (2005) Liverpool to Parramatta bus transitway.

33.

NSW Family and Community Services (2011) Greater metropolitan region: time series of median sale prices by LGA (www.housing.nsw.gov.au/About+Us/Reports+Plans+and+Papers/Rent+and+Sales+Reports/Latest+Issue/; accessed 7 November 2011).

34.

NSW Ministry of Transport (2007) Contract Region 3: Fairfield–Cabramatta–Liverpool–Wetherill Park profile report (www.transport.nsw.gov.au/sites/default/file/abouttrans/Region-3.pdf).

35.

NSW STA (State Transit Authority) (2011) Annual report 2010/11.

36.

Pasha

H. A.

(1995) Comparative statics analysis of urban land values in the presence of government regulation, Urban Studies, 32, pp. 1505–1516.

37.

Perk

Catala

(2009) Land use impacts of bus rapid transit: effects of BRT station proximity on property values along the Pittsburgh Marther Luther King, Jr East Busway (www.nbrti.org).

38.

RICS (Royal Institution of Chartered Surveyors) (2002) Land value and public transport stage 1: summary of findings. Policy Unit, RICS (www.rics.org).

39.

Rodriguez

Targa

(2004) Value of accessibility to Bogota’s bus rapid transit system, Transport Reviews, 24(5), pp. 586–610.

40.

Salon

Shewmake

(2011) Opportunities for value capture to fund public transport: a comprehensive review of the literature with a focus on East Asia. Institute for Transportation and Development Policy (www.ssrn.com/abstract=1753302).

41.

Smith

Gihring

(2006) Financing transit systems through value capture: an annotated bibliography, American Journal of Economics and Sociology, 65(3), 751–786.

42.

Smith

Gihring

with Litman

(2009) Financing transit systems through value capture: an annotated bibliography. Victoria Transport Policy Institute (www.vtpi.org).

43.

H. M.

Tse

R. Y. C

Ganesan

(1997) Estimating the influence of transport on house prices: evidence from Hong Kong, Journal of Property Valuation and Investment, 15(1), pp. 40–47.

44.

TRRL (Transport and Road Research Laboratory) (1984) The impact of metro and public transport integration in Tyne and Wear. Metro Monitoring and Development Study No. SR 478, TRRL.

45.

Wheeler

Tiefelsdorf

(2005) Multicollinearity and correlation among local regression coefficients in geographically weighted regression, Journal of Geographic Systems, 7, pp. 161–187.

46.

Zhu

Liu

(2004) Analysis of the impact of the MRT system on accessibility in Singapore using an integrated GIS tool, Journal of Transport Geography, 12, pp. 89–101.