Review Article
Year: 2017 | Month: October-December| Volume: 1 | Issue: 4 | Pages: 1-25
Reaction of Adjoining Housing Prices to Newly Constructed Sub-Way Lines: Evidence from Empirical Literature
Aliyu Ahmad Aliyu1, Musa Adamu Keffi2, Dominion Agwela Anosike3
1Department of Estate Management and Valuation, Faculty of Environmental Technology, Abubakar Tafawa Balewa University, Bauchi, Nigeria
2Department of Estate Management, School of Environmental Studies, Nasarawa State Polytechnic, Lafia
3Department of Estate Management, School of Environmental Sciences, Federal Polytechnic, Bauchi
Corresponding Author: Aliyu Ahmad Aliyu
ABSTRACT
Based on location theory, the degree of land use impact depends to a great extent on the trivial enhancement in accessibility afforded by the transportation system. The forecast of economic theory would be that accommodation prices in close proximity to the subway stations would increase accordingly due to having convenient access and lesser cost of itinerant within the metropolis. Earlier studies have provided some substantiation on the effect of transit systems on urban residential prices. The majority of property value studies, centered on single-family homes, have uncovered premiums for nearness to transit which are in the six to seven percent assortment. Additionally, a large amount of the previous studies revealed that distance from adjoining light rail transit station and magnitude of dwelling buildings are the most important factors in ascribing house prices. Through employing the reciprocal of distance to determine or estimate the gradient outcome, some studies discovered the influence of the new station on property price appreciation mainly disappears at distances more than a 12 minute walk (0.6 miles) to the station. Using panel data on housing prices and urban rail transit facilities, the past studies revealed that a correlation test reveals important correlations between home prices and rail transit services. One of the fascinating implications of the positive effect of a new subway line on accommodation prices is the connected increase in property tax revenues. Inferences from earlier works of scholars imply a tax revenue increase of no less than 7.5 percent, which may perhaps potentially be allotted for investment in subway lines. Based on the outcome of past researches, opportunity for future research lies in the fact that comparison should be made both transversely across regions as well as across system types (for example, heavy rail, light rail, bus ways and the likes). Further research should be carried out to ascertain whether the impact varies depending on the distinctiveness of the area in which the annexation or extension is erected.
Key words:House Price, Metro Station, Property Value, Subway Line, and Transit Rail Station
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