Lmpact Of Urban Rail Transit On Residential Prices

Since rail transit covers a wide range of area which can effectively promote accessibility from house to the center of city, and make convenience to public travel, thus usually regarded to raise residential prices along its route. However, the academic circle holds different opinions when exploring the impact of rail transit on the residential price. In different cities or even different housing types will reach various results. Accurately estimates the impact of rail transit on residential property prices along the route, and further explored the spatial effect, helps to enhance related research on the impact, and make pricing strategies for real estate developers and useful for home buyers make purchasing options. Since urban rail transit operates more mature in Beijing, Shanghai, Guangzhou, Tianjin, across the country, there are more empirical research on the role of subway lines played on real estate prices about these cities, however, research on Wuhan urban rail transit is relatively lag behind. In fact, the last two years, the Wuhan urban rail transit is booming up with the1st line been opened to public, that’s why this paper choose Wuhan metro line1for example, on bases of relevant research experience at home and abroad, make in-depth analysis on the impact of metro line1on housing prices along the route.In the theoretical study, through the summary and straightening of the literature at home and abroad, the paper determines to use the Hedonic model as the key method. Start from the overall based on theoretical analysis when studying impacts on the residential price of rail transit along, focusing on the impact of the influential range and significance by stations along the rail line, then the general study is expanded to the spatial effect research, to analyze different circles around stations in different locations, combined with the interactive study to examine the impact changes of effects.In the empirical part, the paper first calculates impact range of stations along the Wuhan Metro Line1based on equal-accessibility theory. Results show that with the rail transit station far from the city center, the greater the distance, the radius of the rail transit stations’impact showed an increased trend. The article then uses a hedonic price method and makes a preliminary analysis on value-added law of the overall housing prices along the route, the results show that Wuhan Metro Line1do has significant impact on the residential property prices along the route, which exists within a certain range of the station, and raise residential unit price by an average rate of9.1%, while raise total price by an average rate of8.8%. In addition, the paper further studies the internal laws of the urban rail transit’s impact on housing prices. Through the establishment of four dummy variables, the paper makes an in-depth analysis of the spatial effect of different range surrounding rail transit stations, results show that the value-added benefits of Wuhan metro line1on housing prices along reach the maximum within the range of500meters around the station, thus residential unit price within the range is10.1%higher than those with more than500meters from the line while total price is8.7%higher. Finally the study introduces variables to reflect the station location characteristics, and combined them with the orbital variables as interaction terms, and verified the existence of the interactive effects. It reveals impact of the rail transit on the residential price is not homogeneous, but varied in space.The main innovation of the study lies in samples which were specifically residential units, and were carried out comprehensively to discuss impacts on residential prices along rail transit.