Spatial and time effect of subway on property prices
||Trojanek, Rados?aw; Michal Gluszak
||Spatial and time effect of subway on property prices
||24th Annual European Real Estate Society Conference in Delft, Netherlands
||In the paper, we analyzed both spatial and time effects of subway availability on apartment prices in Warsaw, the only city in Poland with rapid urban transit system. We have used the data set contained in 6971 geo-coded apartment transactions for the years 2010 to 2015 in Warsaw. In this research, the hedonic method was used in OLS, QTL, SAR and SEM models. We found strong evidence that the new subway line (M2) influenced apartment prices even before it was completed. It confirms our hypothesis, and is in line with previous research in other countries. We observed a steady price premium adjustment process related to new subway line. The impact of the new subway line M2 on apartment prices gradually and significantly increased with time. An increase in distance to the subway station was reflected in a decrease in housing prices (from -1.7% per km in 2010 to -2.4% per km in 2015). We have not found similar effect for the old subway line M1. In case of the latter, the marginal effects did not change significantly in time.
||housing market; hedonic methods; subway; property prices
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||Housing Markets & Economics
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