Discriminant Impact of Transit Station Location on Office Rent and Land Value in Seoul

This article presents a study of 731 commercial office properties in Seoul, Korea, with respect to how their value and rental rates are affected by proximity to transit stations. The paper cites previous work analyzing the effect of transit-oriented development (TOD) on property values and desirability. When single-family housing is emphasized, findings can be mixed. This study provides a theoretical framework to correlate value premiums with location and density of a station area, using office locations. Empirical results and conclusions are given. The findings show a potential systematic bias and ask if an improperly specified model in the hedonic approach can exactly capture transit’s impact on land values. Also, including a dummy value for the physical walking distance to a station may make it more difficult for a model to measure benefits. Including multiple modes would be desirable. Station benefits, as a whole, are more easily capitalized in a denser city, which may make results different for less dense areas. More sophisticated analyses could further refine these observations.

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01054541
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Jul 13 2007 3:09PM