Relationship Between Accessibility Improvement and Residential Property Appreciation: An Observation From Shanghai Metro

The costly construction and operation of urban rail transit have become escalating problems for cities worldwide, especially in developing countries. Reliable measures of residential property appreciation for urban rail transit can provide suggestions for policy-making of value capture to fund transit improvements. Using GIS techniques and residential property price data, the relationships between accessibility improvement value and residential property appreciation are analysed in Shanghai. The impacts of urban rail transit on residential property values are classified into traffic effect and agglomeration effect, both of which are measured by the accessibility improvement model. The results indicate that the goodness-of-fit of the model is greater than 93%. Traffic benefit is greater than agglomeration benefit in the suburb, which is completely different in the city centre. furthermore, the residential property appreciation is about 5 times the accessibility improvement value per year. This study contributes to the evidence of capitalization impacts of public transit from a booming and transitional economy and provides suggestions for land use planning of areas surrounding stations.