The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study

The development of new and upgraded transport infrastructure projects are driving economic benefits for business, the environment and society. Major transport projects can fundamentally reshape the very fabric of urban development. However, they are also incredibly expensive to build and can represe...

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Main Authors: Yuer Chen, Maziar Yazdani, Mohammad Mojtahedi, Sidney Newton
Format: Article
Language:English
Published: Elsevier 2019-12-01
Series:Transportation Research Interdisciplinary Perspectives
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590198219300697
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spelling doaj-124e646ba5d84fb4b7b3873dab9b454c2020-11-25T04:03:13ZengElsevierTransportation Research Interdisciplinary Perspectives2590-19822019-12-013The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case studyYuer Chen0Maziar Yazdani1Mohammad Mojtahedi2Sidney Newton3Faculty of Built Environment, University of New South Wales, Sydney, AustraliaFaculty of Built Environment, University of New South Wales, Sydney, AustraliaFaculty of Built Environment, University of New South Wales, Sydney, Australia; Corresponding author.School of Built Environment, University of Technology Sydney, AustraliaThe development of new and upgraded transport infrastructure projects are driving economic benefits for business, the environment and society. Major transport projects can fundamentally reshape the very fabric of urban development. However, they are also incredibly expensive to build and can represent a significant burden on the public purse. A vexed question is how the broader benefit of improved transport infrastructure in operation might usefully be leveraged to contribute to the capital investment cost. The Transit-Oriented Development impact of new transportation infrastructure on the value of local property is gaining increasing attention as a potential source of capital contribution. This study investigates the extent of value uplift in property brought about by the announcement and construction of a major transport infrastructure development in Sydney, Australia. A Hedonic Price Model approach is used to assess data on the market valuation of nearby properties and relevant Census data over two distinct project stages: project announcement (2008–2012), and project construction (2013–2019). Findings of the case study show that the impact of rail transit on property prices is significant, but are generally negative at the announcement stage and positive at the construction stage. At the construction stage, residential prices rose an average of 0.037% for every 1% reduction in the distance to the nearest metro station. Of the three models considered for the Hedonic Price Model the Log-linear model (elastic model) has been shown to perform best in representing the relationships in this particular case.http://www.sciencedirect.com/science/article/pii/S2590198219300697Transit-oriented developmentHedonic Price modelSydney Northwest MetroCase study
collection DOAJ
language English
format Article
sources DOAJ
author Yuer Chen
Maziar Yazdani
Mohammad Mojtahedi
Sidney Newton
spellingShingle Yuer Chen
Maziar Yazdani
Mohammad Mojtahedi
Sidney Newton
The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
Transportation Research Interdisciplinary Perspectives
Transit-oriented development
Hedonic Price model
Sydney Northwest Metro
Case study
author_facet Yuer Chen
Maziar Yazdani
Mohammad Mojtahedi
Sidney Newton
author_sort Yuer Chen
title The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
title_short The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
title_full The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
title_fullStr The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
title_full_unstemmed The impact on neighbourhood residential property valuations of a newly proposed public transport project: The Sydney Northwest Metro case study
title_sort impact on neighbourhood residential property valuations of a newly proposed public transport project: the sydney northwest metro case study
publisher Elsevier
series Transportation Research Interdisciplinary Perspectives
issn 2590-1982
publishDate 2019-12-01
description The development of new and upgraded transport infrastructure projects are driving economic benefits for business, the environment and society. Major transport projects can fundamentally reshape the very fabric of urban development. However, they are also incredibly expensive to build and can represent a significant burden on the public purse. A vexed question is how the broader benefit of improved transport infrastructure in operation might usefully be leveraged to contribute to the capital investment cost. The Transit-Oriented Development impact of new transportation infrastructure on the value of local property is gaining increasing attention as a potential source of capital contribution. This study investigates the extent of value uplift in property brought about by the announcement and construction of a major transport infrastructure development in Sydney, Australia. A Hedonic Price Model approach is used to assess data on the market valuation of nearby properties and relevant Census data over two distinct project stages: project announcement (2008–2012), and project construction (2013–2019). Findings of the case study show that the impact of rail transit on property prices is significant, but are generally negative at the announcement stage and positive at the construction stage. At the construction stage, residential prices rose an average of 0.037% for every 1% reduction in the distance to the nearest metro station. Of the three models considered for the Hedonic Price Model the Log-linear model (elastic model) has been shown to perform best in representing the relationships in this particular case.
topic Transit-oriented development
Hedonic Price model
Sydney Northwest Metro
Case study
url http://www.sciencedirect.com/science/article/pii/S2590198219300697
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