Abstract
Urban transport investments have contributed to the exponential increase of value from land and properties around the built infrastructure. Although literature had shown evidence of value uplift from the residential property due to transit development, little is known about the impact on commercial property values. This paper aims to evaluate the impact of rail transit proximity to the commercial property market by taking into account the pre-operation of the LRT project in Jakarta, Indonesia. This study utilizes a big data approach to accelerate research data processing by employing data mining method, as well as geographical information system (GIS) and hedonic price modeling (HPM) to investigate the property prices to formulate empirical evidence for the research. The results show opposite evidence compared to previous studies which argued that accessibility may contribute to the property price when closer to the transit station. The findings indicate that proximity to rail transit has an insignificant impact on the commercial property price compared to other variables such as building size, number of rooms, location, and hospitals. A comparison of the findings between this research with other studies was discussed and recommendation for further research development was proposed.
Highlights
Investment in rail transit does offer benefits to the public interest, such as increasing physical activity [1], releasing traffic congestion [2, 3], reducing emission [4], and expanding consumer amenities [5], but it enables property owners nearby transit stations to capitalize their assets for greater benefits due to the land value uplift as the effect of accessibility improvement
Research topics related to the relationship between rail transit and property market have been extensively investigated in the past decades and have taken different types of rail transit into account, including mass rapid transit (MRT), light rail transit (LRT), and heavy rail
None of them elaborates evidence of commercial property prices due to transit proximity from developing countries such as Indonesia or Southeast Asian countries, whereas commercial properties are believed as a significant function to attract business activities that can accelerate the economic growth of a city
Summary
Investment in rail transit does offer benefits to the public interest, such as increasing physical activity [1], releasing traffic congestion [2, 3], reducing emission [4], and expanding consumer amenities [5], but it enables property owners nearby transit stations to capitalize their assets for greater benefits due to the land value uplift as the effect of accessibility improvement. Pels, & Rietveld [8] and Mohammad, Graham, Melo, & Anderson [9] have contributed an extensive literature review that covers approximately 200 publications on the topic of rail transit and property values, while some recent studies have discussed this topic in various cities worldwide such as Missouri, USA [10], Hamburg, Germany [11], Beijing, China [12], and Queensland, Australia [13]. None of them elaborates evidence of commercial property prices due to transit proximity from developing countries such as Indonesia or Southeast Asian countries, whereas commercial properties are believed as a significant function to attract business activities that can accelerate the economic growth of a city
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