Impact of light rail line on residential property values – a case of Sydney, Australia. Issue 3 (16th July 2021)

• Record Type: Journal Article
• Authors: Abidoye, Rotimi Boluwatife; Fam, Felice; Oshodi, Olalekan Shamsideen; Oyetunji, Abiodun Kolawole
• Is Part Of: International journal of housing markets and analysis. Volume 15:Issue 3(2022)
• Page Start: 691
• Page End: 708
• Publication Date: 2021-07-16
• Subjects: Light rail -- Property value -- University -- Residential property -- Sydney -- Australia; Residential real estate -- Periodicals; 333.3382205
• DOI: 10.1108/IJHMA-03-2021-0033
• Languages: English
• ISSNs: 1753-8270

Abstract

Abstract : Purpose: The construction of new transportation infrastructure tends to affect the adjoining properties, economy and environment. In particular, studies have investigated the change in the value of properties due to increased access to transportation facilities. The purpose of this paper is to examine the impact of the recently completed light rail on residential property values in Sydney, Australia. Design/methodology/approach: Sales data of residential properties was extracted from the CoreLogic's RP database. The hedonic pricing model was used to assess the effect of proximity to the light rail stops. Two models were developed for the announcement and construction phases of the light rail project. Findings: It was found that during the announcement phase, properties located within the 400 m radius from the station were 3.3% more expensive than those within the 400–800 radius. At the construction stage, the properties within the 0–400 m radius from the stops sold at 3.1% more than those within the 400–800 m radius. This study concludes that a positive relationship exists between the values of residential property and proximity to light rail stations. Practical implications: These findings would be useful for policymakers to develop land value capture programs for infrastructure funding and to real estate professionals and investors for investment in future transit-oriented development. Originality/value: Previous studies that aimed at examining the impact of light rails on residential properties values around universities are limited. Hence, this study provides a broad perspective on the impact of light rail on residential properties values.