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http://dx.doi.org/10.22640/lxsiri.2020.51.2.125

The Dynamic Effects of Subway Network Expansion on Housing Rental Prices Using a Modified Repeat Sales Model  

Kim, Hyojeong (Hyundai Autoever)
Lee, Changmoo (Dept. of Urban Planning and Engineering, Hanyang University)
Lee, Jisu (Korea Land&Housing Corporation)
Kim, Minyoung (Dept. of Urban Planning and Engineering, Hanyang University)
Ryu, Taeheyeon (Hanwha Engineering&Construction)
Shin, Hyeyoung (Dept. of Urban Planning and Engineering, Hanyang University)
Kim, Jiyeon (Dept. of Urban Planning and Engineering, Hanyang University)
Publication Information
Journal of Cadastre & Land InformatiX / v.51, no.2, 2021 , pp. 125-139 More about this Journal
Abstract
Continuous subway line expansion over the years in Seoul metropolitan area has contributed to improved accessibility to public transport. Since public transport accessibility has a significant impact on housing decisions, quantitative analysis of correlation between housing prices and public transport accessibility is regarded as one of the most important factors for planning better housing policies. This study defines the reduction of traveling time resulted from the construction of new metro stations despite them not being the closest stations as 'Network Expansion Effect', and seeks to understand how the Network Expansion Effect impacts on housing prices. The study analyzes monthly rent data converted from upfront lump sum deposit, so called Jeonse in Korea, from 2012 to 2018, through 'A Modified Repeat Sales Model.' As a result, the effect of 'Network Expansion' on rental prices in Seoul has stronger during the period of 2017 to 2018 than the base period of 2012 to 2014, which suggests the 'Network Expansion' has a meaningful effect on rent. In addition, in comparison between the most and the least affected group of apartments by 'Network Expansion Effect', the most affected group has more price increase than the least affected group. These findings also indicate that different levels of 'Network Expansion Effect' have various influences on the value of residential real estate properties.
Keywords
Monthly rent; Modified repeat sales model; Network Expansion;
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