Impact of a new subway line on housing values in Daegu, Korea: Distance from existing lines

摘要

This study investigates the ex ante as well as ex post impact of a new subway line on housing values in Daegu, Korea where two lines already exist. Housing units are divided into two groups: treatment group versus comparison group based on the distance from the nearest station of the new line. Our results based on Hedonic models in difference-in-differences framework suggest that homes within 500 m from the nearest station of the new line can earn a premium of 99.7 thousand Korean Won (equivalent approximately to 96.3 US dollars) per square metre. However, such a premium from improved accessibility to public transit seems to appear mainly for the homes which are within 500 m from the new line and beyond 5 km from the nearest station of the existing lines. For the homes which are close to existing lines, proximity to the new line stations does not increase residents’ convenience remarkably because people are supposed to easily transfer between the new line and existing lines.