Research On The Effects Of Metro Line 13 In Beijing On House Prices Under Hedonic Model

The effects of urban rapid rail transit on surrounding house prices, relating tomany research fields, is a heated basic research subject all around the world. In recentyears, increasing concerns have been given to this subject with the widespreadconstruction of urban rapid rail transit in China. This thesis discusses the effects ofurban rail transportation projects on surrounding house prices with the case of BeijingMetro Line 13. On research approach, the thesis divides the effects of urban rapid rail transit onhouse prices into two aspects: Time Effect and Space Effect. By summarizing theexisting research approaches stated in listed materials, the thesis adopts an approachbased on Hedonic Model and supplemented by average price comparison. The results of research on Space Effect indicate that Metro Line 13 stations havean effect on areas within a radius of 1km of the stations. Unit prices of houses withinthe radius of 0.5km and within the radius between 0.5-1km of a metro station are700yuan/m2 and 400yuan/m2, or 9% and 1%, higher than those houses within theradius between 1-2km respectively. House total prices have similar features. Thesedifferences in prices are mainly brought about by Metro Line 13. The results ofresearch on Time Effect indicate that house prices in effected areas have undergonean appreciation corresponding to the construction of Metro Line 13. Within a radiusof 1km of a station, unit prices of houses have increased approximately 780yuan/m2,or by 18% in 2004, compared unit prices in 1999. The house total prices have similarfeatures. Except for the accessibility brought about by Metro Line 13, the increasemay be effected by many other factors, including corresponding development ofcommerce in the whole traffic corridor. The degree of the effect of each station depends on whether the Metro line willbe an important transportation assess in the surrounding areas and to which extend theMetro will improve the accessibility of the surrounding areas to the whole urbantransportation network. Prices of houses around Metro Line 13 have recorded - II -favorable responds to two landmark occasions: its start of construction and its open totraffic. Finally, by using the results from the previous studies, the strategy for integrateddevelopment of urban rapit rail transit with land use is preferd to the strategy ofmaking use of the benefits of increase of property.