Does bus accessibility affect property prices?

Linchuan Yang, Jiangping Zhou, Oliver Feng-Yeu Shyr, (Derek) Da Huo

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Existing studies have yet reached consistent conclusions on accessibility benefits of buses. Most existing studies have been conducted in the context of the West, where bus patronage is generally low. In this study, we used a database of 22,586 secondhand residential properties in 358 residential estates in Xiamen, China to develop four non-spatial hedonic pricing models (one standard and three Box-Cox transformed) and two spatial econometric models to quantify the effects of bus accessibility on property prices and analyze how the introduction of spatial econometric models would influence estimates of such benefits. Our findings are as follows. (1) Access to bus stops is positively correlated with property prices. This outcome is in contrast with findings of mainstream research (or conventional wisdom). For every bus stop within 500 m, the price of a property is 0.5% higher, all else being equal. (2) Bus travel times to essential destinations significantly influence housing prices. (3) Spatial econometric models that account for spatial autocorrelation outperform traditional hedonic pricing models. A few robustness check analyses further guarantee the plausibility of this study. However, the price premiums offered by bus accessibility may be gradually decreased, even eventually discarded, because of declining attractiveness for bus travel and continuous transit service enhancement in the forthcoming years.

Original languageEnglish
Pages (from-to)56-65
Number of pages10
JournalCities
Volume84
DOIs
Publication statusPublished - 2019 Jan 1

Fingerprint

accessibility
econometrics
pricing
travel
clientelism
premium
social attraction
wisdom
guarantee
housing
bus
price
Property prices
Bus
Accessibility
China
autocorrelation
travel time
Econometric models
Spatial econometrics

All Science Journal Classification (ASJC) codes

  • Development
  • Sociology and Political Science
  • Urban Studies
  • Tourism, Leisure and Hospitality Management

Cite this

Yang, Linchuan ; Zhou, Jiangping ; Shyr, Oliver Feng-Yeu ; Huo, (Derek) Da. / Does bus accessibility affect property prices?. In: Cities. 2019 ; Vol. 84. pp. 56-65.
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Does bus accessibility affect property prices? / Yang, Linchuan; Zhou, Jiangping; Shyr, Oliver Feng-Yeu; Huo, (Derek) Da.

In: Cities, Vol. 84, 01.01.2019, p. 56-65.

Research output: Contribution to journalArticle

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